Governments in San Luis Obispo County and beyond worry that a tax initiative on the 2024 ballot will undermine local voter power 

The deep pockets of a statewide business advocacy group have already managed make a controversial tax initiative eligible for the November 2024 California ballot.

Created by an organization called the California Business Roundtable (CBRT), the Taxpayer Protection and Government Accountability Act claims to reinforce taxpayer protection by boosting transparency and giving voters "final say" on new and higher taxes.

But not everyone is convinced.

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• File Photo By Jayson Mellom
• POSSIBLE CHANGE Making purchases in stores could look different if state voters pass the California Business Roundtable's tax initiative next year. The initiative includes a clause that blocks increases or changes to local measures like sales taxes with a majority state voter approval instead of a city-wide one.

While CBRT touted the initiative as a relief for Californians burdened with escalating taxes, many local governments are calling the measure a deceptive way for large corporations to pay less than their fair share of taxes.

Grover Beach Mayor Karen Bright, for one, signed an official letter opposing the initiative at the March 13 City Council meeting after the governing body set its legislative platform with the League of California Cities.

"People could just hear 'taxpayer protection and government accountability' and think that's good," Bright told New Times. "But when you look at the group behind it, they're advocates of large corporations with no interest in local government."

CBRT is led by a team of nine, including Chair Thomas McKernan, who also heads the Automobile Club of Southern California; Vice Chair Mike Vomund, who is the vice president of Chevron Corporation in the Western United States; and President Robert Lapsley, who previously served as the vice president of the California Chamber of Commerce.

A slew of the tax measure's potential requirements are prime head turners: two-thirds voter approval for all new special tax increases, local tax increases needing a statewide voter majority, and a retroactive voiding of all state and local taxes adopted after Jan. 1, 2022, if they don't comply with the initiative.

"We could have people voting on things they don't know anything about. People in Napa Valley or San Diego County will be voting on things affecting a particular city or county," Bright said. "It's easy for people to say 'no' when they don't understand why it's necessary."

She added that the clause about retroactive nullification takes power away from voters. Bright told New Times that if voters pass this ballot measure next year, there would be dire consequences for local governments, school districts, public safety, and labor groups to raise funds and continue providing services for constituents.

"I worked in San Luis Coastal [school district] for 33 years as the district buyer," she said. "I worked on ballot measures and contracts, and this is the first time I've seen something like this [tax measure]."

The organization calls itself nonpartisan with a 35-year track record of identifying "issues critical to a healthy business climate and provided the leadership needed to strengthen California's economy and create jobs." Last year, in an unprecedented move, CBRT publicly endorsed billionaire former Republican Rick Caruso for Los Angeles mayor. Caruso lost to Democrat Karen Bass after funneling $104 million into his campaign—the greatest amount spent by a mayoral candidate in U.S. history.

"We understand them to be an advocacy group for wealthy real estate groups and corporations," 2nd District SLO County Supervisor Bruce Gibson said. "They're pretty far right and anti-government."

Gibson is also the 1st vice president of the California State Association of Counties (CSAC). It represents county government to the state Legislature and the federal government, and focuses on educating the public about county programs. CSAC is also vocally against the tax measure, and Gibson lauded Grover Beach's early opposition too.

"The counties that are opposed to this measure spanned an incredible range of political outlets," he said. "This is a numbers game, and these are deep-pocketed folks. It reveals the downside that money can buy an initiative on the ballot."

Gibson is referring to pay-per-signature process of compensating people who collect signatures for ballot initiatives. These gatherers, also called circulators, are paid based on the number of signatures they collect. Gibson told New Times that they're usually paid $10 to $14 per signature.

Campaign finance data from the Secretary of State show that CBRT received more than $16.3 million in contributions for the initiative, and the group spent roughly $16.2 million of that. Some contributors include CBRT's political action committee based in San Rafael, a Howard Jarvis Taxpayers Association project call "Protect Prop. 13," and the Glendale-based self-storage company Public Storage.

CBRT Vice President Brooke Armour Spiegel told New Times via email that they began circulating the measure for signatures last January.

CBRT didn't respond to additional inquiries before press time.

"In all instances, they're looking to lower their tax load," Gibson said of the organization and its members. "Passing this measure makes it harder to tax their properties. I think people appreciate that local government provides services to folks. This measure will be a hotly contested issue."

David Mullinax, the League of California Cities spokesperson who helped Grover Beach with its legislative platform, also anticipates more pushback to the measure. Both he and Gibson told New Times that a provision exists where the proponent of a ballot measure could negotiate a deal with the Legislature to withdraw the initiative if some of their wants are met. But Mullinax added that it won't be straightforward. Like CSAC, the League will be deliberating further, with Mullinax visiting other cities to spread the word.

"A lot of the provisions are ill-defined or undefined," he said. "I've never seen an initiative this complex. More cities are aware of it but aren't educated. So far, I don't know any city who is for this initiative." Δ

Reach Staff Writer Bulbul Rajagopal at [email protected].