NFIB Opposes Giving Local Governments Greater Debt Power

September 9, 2024

NFIB Opposes Giving Local Governments Greater Debt Power

FOR IMMEDIATE RELEASE Contact: Tim Taylor, California Policy Director, timtaylor264@gmail.com or Tony Malandra, Senior Media Manager, anthony.malandra@nfib.org SACRAMENTO, Calif., Sept. 9, 2024—California’s leading small business association today announced its opposition to Proposition 5 on the November ballot, which would lower the voter threshold needed for local governments to engage in deficit financing through bonds to 55% from its current two-thirds requirement. “For good reasons, small business owners are by nature apprehensive of giving government too much power to spend, because they know that somehow they will eventually get stuck with the tab,” said Tim Taylor, policy director for NFIB in California. “So, it should come as little surprise that NFIB California highly recommends a ‘No’ vote on Proposition 5.” The state’s constitution bars cities, counties, and school districts from incurring debt exceeding any year’s revenue unless it has two-thirds approval of the voters.? “As the most vital citizens of every community in California, small business owners know the importance of building and maintaining the infrastructure and housing needed to benefit all of society and that the only way local governments can do their part is by taking on bonded indebtedness that can be paid off over time,” added Taylor. “What small business owners are concerned about, however, is if making it much easier for local governments to deficit spend would open a Pandora’s Box of needless projects fueled by political favoritism that would eventually lead to a local government’s bankruptcy.” The constitutional requirement of a two-thirds vote to pass bonds has been the law for 145 years and has stood the test of time. Proposition 5 would also make it easier for cities, counties, and special districts to raise property taxes.? “For these reasons and many unforeseeable but highly plausible ones, NFIB California recommends voting ‘No’ on Proposition 5,” said Taylor. Keep up with the latest on California small-business news at www.nfib.com/california or by following NFIB on Twitter @NFIB_CA or on Facebook @NFIB.CA.? ### For 80 years, NFIB has been advocating on behalf of America’s small and independent business owners, both in Washington, D.C., and in all 50 state capitals. NFIB is a nonprofit, nonpartisan, and member-driven association. Since its founding in 1943, NFIB has been exclusively dedicated to small and independent businesses and remains so today. For more information, please visit nfib.com.? NFIB California 915 L St. Ste C-411 Sacramento, CA 95814 916-448-9904 NFIB.com/CA Twitter: @NFIB_CA