Recommendation for Proposition 39 - Tax Treatment for Multistate Businesses. Clean Energy and Energy Efficiency Funding.

Adequate revenue to provide for the public good is critically needed. The League supports Prop 30 on this ballot as the best way to provide some relief from the endless cutting of vital government services. We see some merit in Prop 39, but have taken a neutral position because of its earmarking of revenues.

This measure will close a tax loophole for multistate businesses, generating revenues of about $1 billion per year—a good thing. However, it earmarks about half the new revenue for the first five years, so that portion can only be used for energy efficiency and alternative energy projects. We are neutral on this proposition because we believe new revenue for the state should be available for all of the programs funded by state revenue—schools, law enforcement, health care, jobs programs, the judiciary system.