The Los Angeles Area Chamber of Commerce said it has endorsed the six state fiscal reform measures on the May 19 special election ballot.
The Friday morning announcement was made in a press conference featuring Gov. Arnold Schwarzenegger. "The passage of Propositions 1A, 1B, 1C, 1D, 1E and 1F are the necessary final steps we all must take to balance the $42 billion state budget deficit," said chamber Chief Executive Gary Toebben.
Propositions 1A through 1F were placed on the ballot by the Legislature as part of the February budget agreement to close the $42 billion gap. Among the proposals: a spending cap and reserve fund, borrowing from the state lottery and redirecting some special purpose monies to the general fund.
The Chamber joins the Central City Association and the Valley Industry and Commerce Association among local business organizations supporting most or all of these measures. VICA's board did not endorse Proposition 1C, the lottery borrowing measure.
Some anti-tax and Republican groups have opposed most or all of the measures, including Insurance Commissioner Steve Poizner, who is expected to seek the Republican gubernatorial nomination next year. They claim it sets a precedent for increasing taxes. Some unions and interest groups oppose Proposition 1A, the spending cap, on grounds it would take away funds from what they regard as essential state programs.
A recent Public Policy Institute of California poll indicates that five of the six measures lack majority support; only Proposition 1F, which halts salary increases for state elected officials when the state budget runs a deficit, appears to have enough support for passage.
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