{{ElectionsCA Proposition 65 was a

California ballot proposition In California, a ballot proposition is a referendum or an initiative measure that is submitted to the electorate for a direct decision or direct vote (or plebiscite). If passed, it can alter one or more of the articles of the Constitution of Cal ...

on the November 2, 2004 ballot. It failed to pass with 3,901,748 (37.6%) votes in favor and 6,471,506 (62.4%) against. It was a state constitutional amendment that would have required voter approval for any state legislation reducing certain

local government Local government is a generic term for the lowest tiers of public administration within a particular sovereign state. This particular usage of the word government refers specifically to a level of administration that is both geographically-l ...

revenues from January 2003 levels. It was officially known as the Local Taxpayers and Public Safety Protection Act. Local governments (

cities A city is a human settlement of notable size.Goodall, B. (1987) ''The Penguin Dictionary of Human Geography''. London: Penguin.Kuper, A. and Kuper, J., eds (1996) ''The Social Science Encyclopedia''. 2nd edition. London: Routledge. It can be def ...

and

counties A county is a geographic region of a country used for administrative or other purposesChambers Dictionary, L. Brookes (ed.), 2005, Chambers Harrap Publishers Ltd, Edinburgh in certain modern nations. The term is derived from the Old French ...

) in

California California is a state in the Western United States, located along the Pacific Coast. With nearly 39.2million residents across a total area of approximately , it is the most populous U.S. state and the 3rd largest by area. It is also the m ...

primarily receive their revenue from three sources:

property tax A property tax or millage rate is an ad valorem tax on the value of a property.In the OECD classification scheme, tax on property includes "taxes on immovable property or net wealth, taxes on the change of ownership of property through inhe ...

es, local sales taxes, and the

vehicle license A vehicle licence (also called a vehicle registration certificate in some jurisdictions) is issued by a motor registration authority in a jurisdiction in respect of a particular motor vehicle. A current licence is required for a motor vehicle to b ...

fees. Proposition 65 was born out of frustration from local governments as the California state government increasingly used local revenues to pay for state government programs, especially during tough financial times. Proponents of the proposition ultimately used it as a bargaining tool to negotiate an agreement with

Governor A governor is an administrative leader and head of a polity or political region, ranking under the head of state and in some cases, such as governors-general, as the head of state's official representative. Depending on the type of political ...

Arnold Schwarzenegger and the California State Legislature on protecting local government revenues. The result was the compromise Proposition 1A on the same ballot, which provided more flexible terms and deferred its restrictions until 2006. As a result, previous proponents of Proposition 65 dropped their support in favor of Proposition 1A. This proposition conflicted with the provisions of Proposition 1A on the same ballot. The California Constitution provides that if the provisions of two approved propositions are in conflict, only the provisions of the measure with the higher number of "yes" votes at the statewide election take effect. (Since Prop 65 did not pass, the issue was moot.)

Official summary

* Requires voter approval for any legislation that provides for any reduction, based on January 1, 2003, levels, of local governments' vehicle license fee revenues, sales tax powers and revenues, and proportionate share of local property tax revenues. * Permits local government to suspend performance of state mandate if state fails to reimburse local government within 180 days of final determination of state-mandated obligation; except mandates requiring local government to provide/modify: any protection, benefit or employment status to employee/retiree, or any procedural/substantive employment right for employee or employee organization. Summary of Legislative Analyst's Estimate of Net State and Local Government Fiscal Impact: * Significant changes to state authority over local finances. Higher local government revenues than otherwise would have been the case, possibly in the billions of dollars annually over time. Any such local revenue impacts would result in decreased resources to the state of similar amounts.

External links

Voter Information Guide with text of Proposition 65
65 Failed amendments to the Constitution of California Initiatives in the United States