☆ Why SCC voters rejected Proposition 5's tax-raising agenda: the full story

 

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Prop 5 (to lower CA's bond approval reqt from 66.6% to 55.%) may have been supported by local councilmembers, our governor, and even SJ's Chamber of Commerce—but not voters. In November 2024, over 55% of CA'ns rejected Prop 5. What happened? In this exclusive, we walk back Opp Now's Prop 5 coverage (incl. when it was ACA 1), starting in September 2023 up until Election Day '24.

ACA 1/Prop 5:

When it was first proposed to amend California's constitution via ACA 1 to make it easier (read: less public approval required) to pass costly “infrastructure” bonds, two things stuck out to us.

#1: Many political officials, local and statewide, were having a field day. Endorsements this way and that, spirited discussions about the need to “save” essential city projects via Prop 5. And, as you'll see below, lots of misinformation.

Meanwhile, #2: Everyday citizens were raising valid concerns that were largely dismissed by gov't/media.

Our coverage on Opp Now combined commentary from local tax experts, political leaders, and more—starting in September 2023.

We asked local leaders to analyze ACA 1/Prop 5 and its implications:

Silicon Valley Taxpayers Association prez: In endorsing ACA 1, SJ Council starkly “going against” residents' wishes 9/11/2023

Past MV mayor: SJ's gutting of Prop 13 an “overt” push for Big Government 9/14/2023

On outmigration, living standards, and (yes) taxes: What's really at stake with ACA 1?

10/2/2023

Perspective: California “has a spending problem”—so expect frequent tax bumps if ACA 1 passes 10/9/2023

Opinion: How local government's frittering away your valuable taxpayer dollars 2/6/2024

We also heard from statewide politicians, watchdogs, and org leaders:

LA Taxpayers Association: It's time we safeguard CA'ns from tax hikes many oppose 9/19/2023

If ACA 1 & 13 pass, what seven Capital vices might prey on SJ taxpayers? 10/23/2023

Sac Biz Journal: ACA 1 could be “the straw that breaks the back of many CA family businesses” 11/16/2023

Should it be easier for City/State gov't to access tax revenue? 11/21/2023

Perspective: Under ACA 1 & 13, property owners would shoulder “burden” of unrestricted tax hikes 12/6/2023

Opinion: Pols afraid of Taxpayer Protection Act because it disrupts Big Gov't/Little Taxpayer status quo 12/12/2023

Opinion: Speaking Up(land) for taxpayer rights, as California awaits '24 Prop 13 battles 1/2/2024

Notably, SJ City Council endorsed ACA 1/Prop 5 in August 2023:

Leaders oppose SJ City Council's tax-raising schemes 9/12/2023

Local GOP head rips SJ City Council's assault on Prop 13 9/13/2023

Tax expert schools SJ's CM Cohen on Prop 13 12/8/2023

D10 candidates differ on TPA, Prop 13 defense 12/11/2023

Council's endorsement was surprising—and controversial—because Prop 13 remains popular locally:

Santa Clara County was (and is) Prop 13 country—despite politicians' opposition 10/23/2023

Claim: ACA 1 would “chip away” at Prop 13 protections, contra SCC voters' wishes 1/19/2024

Why SCC voters took the reins in support of Prop 13 in 1978 2/1/2024

Four decades later: Do Californians still support Prop 13? 11/29/2023

Sen. Jones: ACA 1 “wrongly chips away” at Prop 13, empowers “greedy” pols 1/5/2024

Prop 5:

As when it was first invented as ACA 1, CA's Proposition 5 was lauded and endorsed by local media sites, city councils, and even SJ's Chamber of Commerce. But the criticism—from gov't and tax experts across the Golden State—just kept on comin'.

And on Election Day 2024, California citizens finally put a stop to Prop 5 by 55.5% voting “no” against it (54.3% in Santa Clara County). More on how it all unfolded, and which local leaders helped champion “No on 5,” below.

Here are some of our favorite stories about the threats Prop 5 posed to Californians:

Former Palo Alto Mayor: Prop 5 will increase cost of living, tax people out of their homes (3/3) 9/26/2024

Opinion: By letting local bonds pass with only 55%, Prop 5 is a risky end run around Prop 13 protections 10/15/2024

HJTA’s Susan Shelley: Look out for more RM4’s—Prop 5 to jumpstart a frenzy of bonds that tax people out of their homes (part 3) 10/23/2024

Opinion: Prop 5 empowers local gov't to over-buy, over-tax, and over-borrow 10/28/2024

Proposition Doubleplusgood 10/25/2024

In August 2024, SJ City Council voted to endorse Prop 5:

CM Cohen gets his Civics wrong in odd, mistaken rant about democracy, taxes, and majority rule 9/4/2024

Divided council vote on Prop 5 endorsement daylights concerns about lack of outreach re: city ballot endorsements 9/2/2024

Contra Cohen, think tank experts say Prop 5 isn't about democracy; it's about unions making it easier to boost gov't employees salaries 9/5/2024

Memo to CM Cohen: "The majority can easily tyrannize the minority" 9/12/2024

CM David Cohen was opposed to letting locals vote on taxes—until he was for it 9/16/2024

There were several notable “no's” on Prop 5, ranging from city councils to local media:

Merc editorial board opposes Prop 5 10/2/2024

Gilroy City Council opposes Prop 5 9/17/2024

Opp Now exclusive: Libertarian presidential candidate Chase Oliver tackles BART extension, Prop 5, hot local issues 9/23/2024

SF Chron is No on Prop 5: says “Frankenstein” initiative would raise taxes, then ban local gov'ts from using proceeds on 96% of CA's residential land 10/1/2024

Local political and business leaders coming together in opposition to Prop 5 10/7/2024

SJ Chamber of Commerce gave a controversial “yes” to Prop 5:

Seriously? SJ Chamber lines up with socialist group in Prop 5 endorsement 10/8/2024

Local business leaders puzzled, disappointed by Chamber's endorsement of tax-increasing Prop 5 10/10/2024

Also, Susan Shelley at Howard Jarvis Taxpayers Association analyzed the dangers of a lower voting threshold:

HJTA’s Susan Shelley: Prop 5 a sneaky way to hike taxes and give raises to gov't employees (part 1) 10/21/2024

HJTA’s Susan Shelley: Prop 5’s ballot label under-informs voters because governments just want more tax money (part 2) 10/22/2024

HJTA’s Susan Shelley: Look out for more RM4’s—Prop 5 to jumpstart a frenzy of bonds that tax people out of their homes (part 3) 10/23/2024

HJTA’s Susan Shelley: Prop 5 helps local governments trick voters into generational debt (part 4) 10/31/2024

Marin CO$T's Mimi Willard dug into Prop 5's concerning implications:

Marin CO$T’s Mimi Willard: Prop 5 to unleash a “tax tsunami” for local and regional bonds 10/4/2024

We heard from additional tax experts and concerned citizens across CA about Prop 5:

Upcoming local tax tsunami may be prompting updated tax revolt, says expert 7/19/2024

CA tax expert slams Prop 5 as “deceptive,” a covert entryway to residents' paychecks 9/6/2024

Howard Jarvis Taxpayers Association: Prop 5 would be an aggressive debt-making machine 9/10/2024

Consto, ergo sum “infrastructure” 9/11/2024

Opinion: BAHFA’s pivot to Prop 5: if you can’t win, change the rules 10/3/2024

Opinion: Why bonds are worse than taxes 10/11/2024

Opinion: Prop 5’s promise of “affordable” housing will hike the cost of living for seniors, retirees, and people with disabilities 10/29/2024

Opinion: Bay Area’s Prop 5 profiteers serve at the “pleasure, whim, and political wishes of MTC" 10/30/2024

Prop 5’s bonds will hit Bay Area taxpayers hardest, expert says 11/1/2024

Is Prop 5 missing the point? Voters may undo CA's Constitution for easy bond money, when smarter alternatives exist 11/4/2024

Opinion: Prop 13 protects us from tax-greedy gov'ts; Prop 5 wants to strip all that away 11/4/2024

Bound by a visible thread: your ballot choices this year will show up on next year’s tax bill 11/5/2024

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Opp Now enthusiastically welcomes smart, thoughtful, fair-minded, well-written comments from our readers. But be advised: we have zero interest in posting rants, ad hominems, poorly-argued screeds, transparently partisan yack, or the hateful name-calling often seen on other local websites. So if you've got a great idea that will add to the conversation, please send it in. If you're trolling or shilling for a candidate or initiative, forget it.

Jax Oliver