CA manufacturing gets a little help in state's races and propositions

By CMTA Staff

Capitol Update, Nov. 3, 2010 Share this on FacebookTweet thisEmail this to a friend

Here's the "GOOD" for manufacturing

  • Prop 26 passed and taxes can't be passed as fees.
  • Prop 24 failed and a few of CA's competitive tax policies remain.
  • Redistricting commission remains intact (Prop 20 passed and Prop 27 failed).
  • Steve Cooley still has a chance to be Attorney General (Cooley's statement).
  • Pro-manufacturing candidates, Anthony Cannella and David Valadao, won competitive state legislative races.

Here's the "REAL BAD"

  • Prop 23 failed, ensuring increased energy rates and other costs for all manufacturers.
  • Meg Whitman lost and CA loses our staunchest opposition to the state's "factory tax".    
  • Carly Fiorina lost and CA loses opportunity to put committed champion of manufacturing in the U.S. Senate.    
  • Other pro manufacturing statewide and legislative candidates lost competitive races.

With 12.4 % unemployed, more than a third of our manufacturing base gone, and the rest of the country opting to vote for private sector economic growth yesterday, California must find ways to be a competitive place to operate.  For example, CA needs to join the rest of the country and exempt from sales tax the purchase of manufacturing equipment.  CA also needs to reform its regulatory process by introducing independent economic analysis.Message to all manufacturers:  We need your help to make our case in California in 2011!

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Here are the details of the overall state election:
Yesterday’s general election voter turnout was a fair showing at best.  Of California’s 17.3 million registered voters, only 7.4 million or 43.1% of registered voters participated.  Of those registered to vote, 44% are Democrats, 31% Republicans, and 20.3% are declined to state.  Independent voters, in particular, played a major role in the election.

In the months since the June primary, an inordinate sum of resources had been spent by the various campaigns on rallies, phone banks, precinct walks and political advertisements.  Despite the significant resources being poured into this election cycle, political pundits have suggested that such low voter participation solidified the fact that voters are dissatisfied with the State’s overall election process.

Of all of the campaigns, the gubernatorial race was perhaps the most costly, tumultuous gubernatorial campaign in recent State history.  From “Nikky-gate” (Whitman firing her undocumented former employee) to the unsavory Whitman slur by a Brown staffer, there was never a dull moment.  And despite record-setting self-funding by Whitman in the realm of $140 million, she failed to pull off the win conceding to Brown shortly before midnight.

Another hotly contested race was the race for U.S. Senate.  Senator Barbara Boxer was in jeopardy of losing her seat to former HP executive Carly Fiorina.  Despite the vigorous campaigning by Fiorina, however, Boxer managed to retain her seat.

All in all, Democrats focused their messaging on relaying to voters that wealthy big-business candidates, like Whitman and Fiorina, were trying to buy their elections.  In contrast, Republicans painted Brown and Boxer as “more of the same,” but ultimately failed to achieve the success associated with such messaging as seen in other parts of the country.

In the House of Representatives, not a single California seat switched parties, but two seats remain up in the air: CD 11 Harmer/McNerney (incumbent) and CD 20 Vidak / Costa (incumbent).  Stay tuned.

In terms of legislative races, many seats were “open” this year as a result of term limits. However, most of the seats were considered to be either “safe” Republican or “safe” Democratic seats and were all but assured their win yesterday.  After all was said and done, only one seat changed hands (in the 5th Assembly District.)  As it stands now, with SD 1 heading to a run-off special election in January and SD 28 vacant due to Senator Oropeza’s recent passing, there will be 52 Democrats and 28 Republicans in the Assembly and 24 Democrats and 14 Republicans in the Senate.

And finally, voters were faced with a multitude of ballot measures ranging from the legalization of marijuana to increased funding of State parks to lowering the vote threshold to passing the state budget.  Of the nine initiatives, three measures in particular took center stage.--  Proposition 19 (marijuana legalization), Proposition 23 (AB 32 suspension) and Proposition 25 (majority budget vote).  All generated strong voter opinions while garnering national attention.  Voter’s made their discontent with the current budget process clear by passing Proposition 25.

You can find all of the up-to-the-minute results here:
http://vote.sos.ca.gov (click "election results" on left side)

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We thought we'd provide the proposition results for you here:

PROPOSITIONS
Proposition 19: Regulate, Control and Tax Cannabis Act of 2010
FAILED
Legalizes marijuana for those at least 21 years old and permit local governments to levy taxes and regulate marijuana operations in their respective jurisdictions. 
Yes: 46.2%
No: 53.8%

Proposition 20: Voters FIRST Act for Congress
PASSED
Grants the authority to draw congressional district lines, a power currently held by the Legislature, to the Citizens Redistricting Commission that was created after the passage of Proposition 11 in 2008.
Yes: 61.2%
No: 38.8%

Proposition 21: State Parks and Wildlife Conservation Trust Fund Act
FAILED
Increases the annual vehicle license fee by $18 in order to generate revenue, an estimated $500 million a year, to fund State parks.  Additionally, all registered vehicles would gain free admission to all state parks if this measure is adopted.
Yes: 42%
No: 58%

Proposition 22: Local Taxpayer, Public Safety, and Transportation Protection Act of 2010
PASSED
Prohibits the State from borrowing money from local government, transit and transportation funds.
Yes: 60.9%
No: 39.1%

Proposition 23: California Jobs Initiative
FAILED
Suspends the implementation of the Global Warming Solutions Act, AB 32, until the State unemployment rate drops to 5.5% for four consecutive quarters.
Yes: 38.7%
No: 61.3%

Proposition 24: Repeal Corporate Tax Loopholes Act
FAILED
Stops three corporate tax incentives from going into effect.  The measure targets the single sales factor tax incentive, the loss carry-back incentive and the tax credit-sharing incentive.
Yes: 41.6%
No: 58.4%

Proposition 25: On-Time Budget Act of 2010
PASSED
Lowers the current vote threshold for the Legislature to pass a budget from a 2/3 vote to a majority vote.  Additionally, the measure would prohibit Legislators from being paid if they miss the June 15th constitutional deadline to pass a budget.  
Yes: 54.9%
No: 45.1%

Proposition 26: Supermajority Vote to Pass New Taxes and Fees Act
PASSED
Increases the current legislative vote requirement to pass any new fees, certain taxes or levies to a 2/3 vote instead of a majority vote.  It would also require voters to approve, either by a 2/3 or majority vote, new local fees or levies.
Yes: 52.7%
No: 47.3%

Proposition 27: Financial Accountability in Redistricting Act
FAILED    
Disbands the Citizen Redistricting Commission, which was created by the passage Proposition 11 (2008), and gives redistricting power back to elected officials.  Additionally, the measure would allow voters to reject district maps drawn by those officials. 
Yes: 40.6%
No: 59.4%

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