2018 General Election Results Round-up

Voting can be confusing, and sometimes deciphering the results of an election can be equally so. With things like ranked-choice voting and differing vote thresholds required for items to pass, sorting out the aftermath of an election can be tough. Read on to learn more about the results and why they are consequential for our region and the issues TechEquity cares about.

Note: this article was written on Wednesday November 7th, so not all votes are completely accounted for at the time of writing. Results may change as permanent absentee and provisional ballots are counted, especially for races with close margins.

California Statewide Measures

This election cycle, Californians voted on eleven measures covering a broad array of topics. TechEquity took positions on five of those this November.

Propositions 1 & 2 Results — YES

TechEquity’s endorsements — YES

Both of these propositions were placed on the ballot by the California legislature. Both measures sought to increase funding for one of TechEquity’s issue areas, housing. Prop 1 passed somewhat comfortably, allowing the state to authorize $4 billion in bonds for affordable housing. The funds are desperately needed in the short-term as the state looks toward more sustainable funding sources for the construction and maintenance of affordable housing.

Prop 2 soared to passage with overwhelming support. Prop 2 could go a long way in supporting some of California’s most vulnerable residents. The measure will support the construction of housing with supportive services for those experiencing homelessness and those with acute mental healthcare needs.

The passage of both these measures shows that housing remains top of mind for California voters.

Proposition 5 Result — NO

TechEquity’s endorsement — NO

This measure, which made it to the ballot with support of the California Realtors Association, would have expanded Prop 13 tax breaks for older homeowners. We opposed the measure, as did well more than 50% of California’s voters last night. If passed, the measure would have meant a loss of $1 billion in tax revenue each year for our state while also making housing more expensive, according to a report by the California Legislative Analyst’s Office.

The California Realtors Association claimed the measure would help the housing crisis by allowing older homeowners to downsize, freeing up needed housing. Fortunately, voters saw through the thinly-veiled motives of this measure, understanding that current California law already allows older homeowners to keep their reduced property tax base when they downsize. California Realtor’s President Jared Martin has already said they are considering plans to advocate for a similar proposal in the state legislature and might present voters with a revised initiative in 2020, so keep your eye out for a potential revival.

Proposition 6 Result — NO

TechEquity’s endorsement — NO

Voters don’t usually like having their taxes raised, and often look for opportunities to prevent them from rising. Fortunately, voters allowed the gas tax increase to stay in place last night by rejecting Prop 6. If passed, Proposition 6 would have repealed the gas tax increase passed by the California Legislature in 2017.

By rejecting the repeal last night, California voters ruled that the thirteen cents per gallon tax will remain in place. The last time California increased the fuel tax was twenty-three years ago, meaning our state hasn’t had the funding needed to keep up with the wear and tear on our roads, bridges, and highways. Many of the projects funded by the fuel tax increase are already well underway; by defeating the measure, voters ensured there will be a sustainable funding source for those projects for years to come.

Proposition 10 Result — NO

TechEquity’s endorsement — Neutral

Polls prior to the election showed the passage of Proposition 10 was a long shot, and they were right. The measure was defeated by a wide margin. Prop 10 proposed that we repeal the Costa-Hawkins Act. Costa-Hawkins, passed by the legislature in 1995, limited cities’ ability to enact rent control.

With growing concerns about rising rents, some advocates saw repealing Costa-Hawkins, and allowing cities to expand their rent control policies to buildings that were previously barred from inclusion, would help protect more Californians. Experts disagree about whether or not expanded rent control would indeed help our state’s affordability crisis. TechEquity has written in the past about how a full repeal of Costa Hawkins is a mixed bag. We remained neutral on the measure, but look forward to opportunities to explore reform of Costa-Hawkins through the legislature.

Local Measures

This year, TechEquity looked at measures in San Francisco, Berkeley, and Oakland. TechEquity took positions on one out of the five San Francisco measures, four of six Oakland measures, and three of four Berkeley measures.

San Francisco’s Measure C Result — YES

TechEquity’s endorsement — YES

One of the most public fights on the local level has been decided — almost. Proposition C, which would levy a tax on the city’s most profitable companies to expand housing and services for those experiencing homelessness, was winning with with 60% of the vote as of this writing. This could nearly double the funding to combat one of the city’s most pressing issues, much to the celebration of activists and some tech moguls who fought openly with dissenters on Twitter.

While 50-plus-one percent was the requirement for this measure to pass, there is disagreement as to whether or not it will be enough to allow Prop C to run off without a hitch. Because it is a tax-related measure, there are potential grounds in court to argue that it needed more than two-thirds vote to measure up to state law. There are similar legal challenges in the courts right now. Advocates argue that there is clear California Supreme Court precedent for allowing citizen-initiated tax propositions to pass with a simple majority. So while the passage of Prop C should be celebrated, we’ll have to see how the court challenge shakes out to determine whether or not this sustainable funding to address homelessness will see the light of day. Until then, the tax will most likely still be collected but the money will be held in escrow.

Oakland’s Measures W, X, Y, Z Results — YES

TechEquity’s endorsement s— YES to all

Oakland passed an ambitious package of housing measures W, X, and Y this year. Measure W will enact a vacant property tax, Measure X changes the city’s real estate transfer tax from a flat to a progressive tax, and Measure Y creates comprehensive Just Cause for eviction protections. The passage of all three of these measures shows the energy at the polls from Oaklanders concerned about the intensifying housing crisis, despite spending from the Apartment Association (a lobbying organization funded by landlords) to defeat Measures W and Y. The passage of Measure W is significant, especially as San Francisco considered a vacancy tax at the Board of Supervisors in 2017 that ultimately couldn’t gain enough steam. San Francisco is expected to see a vacancy tax measure go before voters in 2019.

Oakland’s Measure Z, which sought to improve pay and working conditions for hotel workers in the city also passed.

Berkeley’s Measures O, P Results — YES

TechEquity’s endorsement s— YES to both

California will see a boost in available funding for the development of affordable housing through the passage of Proposition 1, but Berkeley added additional funding through a bond of its own. Measure O passed, authorizing the sale of $135 million in bonds to be spent on affordable housing. Berkeley also converted their real estate transfer tax from a flat tax to a progressive tax through Measure P. Much like Oakland’s Measure X, the enactment of a progressive transfer tax seeks to lighten the burden for first time homeowners and those seeking to buy modest homes while shifting more of the tax burden to those who can afford the East Bay’s most expensive properties.

Berkeley’s Measure Q Result — YES

TechEquity’s endorsement — NO

Berkeley voters voted to pass Measure Q, which outlined how the city would update their rent control policy and expansion. The passage of Measure Q is a moot point, given the failure of Prop 10. In order for Measure Q to take effect, the Costa-Hawkins Act would have needed to be repealed. Given Prop 10’s failure, Costa-Hawkins remains in place and Berkeley’s rent control policy remains unchanged. We opposed Measure Q because it included a poison pill — vacancy control. While enacting vacancy control does create rock-bottom rental prices for some, it also incentivizes landlords to allow their properties to fall into disrepair or to convert rental units to condos and sell them off the market.

With the general election now behind us, we’re looking forward to the 2019 legislative session and beyond. Stay tuned here on our blog and join our newsletter for more updates about forthcoming policy priorities.

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