Audit Special Tax Programs & Block New Taxes Outside Spending Limit
Initiative Constitutional Amendment
What This Does in Plain English
California has a constitutional spending limit — a cap on how much the state government can spend each year. Some new "special taxes" are designed to route money outside this cap. This measure does two things: (1) requires an independent audit of any program funded by a new special tax before voters approve it, and (2) prevents the legislature from creating new special taxes that deliberately sidestep the state's spending cap.
The Problem It's Solving
- California's Gann Limit (state spending cap) was designed to prevent government from growing without voter consent.
- Some argue that "special taxes" — earmarked for specific programs — are being structured to bypass this limit, allowing more government spending than voters intended to authorize.
- Voters often approve special taxes without detailed information about whether the programs they fund are effective.
What Changes
- Pre-election audits: Any ballot measure proposing a new statewide special tax must be accompanied by an independent audit of the programs it would fund — before voters decide.
- Spending cap enforcement: New special taxes whose revenue would fall outside the state's existing spending limit are prohibited.
- Constitutional change: These rules would be embedded in the California Constitution.
Who Is Behind It
Funded by Building a Better California on behalf of Californians for a More Transparent and Effective Government — a fiscally conservative coalition that has backed multiple anti-tax and government accountability measures.
Who It Affects
- State lawmakers seeking new revenue through special taxes
- Voters who would receive more information before deciding on tax measures
- Beneficiaries of programs funded by special taxes (education, healthcare, transit)
- Anti-tax advocates who want tighter limits on government spending
Arguments For
- Voters deserve to know if the programs they're funding actually work before they approve a tax.
- Prevents government from circumventing spending limits voters approved to keep budgets in check.
- Increases transparency and accountability in how special tax money is used.
Arguments Against
- Could make it harder to fund critical public programs like schools, transit, and healthcare.
- Spending caps can prevent government from responding to real needs during crises.
- Pre-election audits add bureaucracy and cost without necessarily improving voter knowledge.
Fiscal Impact
Limits future state revenue from special taxes, potentially reducing funding available for public programs. Audit requirements add administrative costs. Long-term fiscal effect depends on how many special taxes would be blocked or modified.