Proposition Summary

HEALTH SERVICES. TAXES. INITIATIVE CONSTITUTIONAL AMENDMENT AND STATUTE. • Establishes health services system with defined medical, prescription drug, long-term, mental health, dental, emergency, other benefits; available to California residents, replacing existing health insurance, premiums, programs. • Services funded by tax upon employers, individuals, with stated exemptions, cigarette/tobacco products surtax, existing federal, state, county health care funds, if authorized; proceeds deposited into Health Security Fund. Health benefit providers, authorized costs, paid from fund. • Elected Health Commissioner administers fund/system, coordinates with federal law. • Provides cost controls; annual expenditure limits based on prior year expenditures, unless adjusted. • Creates advisory Policy Board, Consumer Council. Summary of Legislative Analyst's Estimate of Net State and Local Government Fiscal Impact: • Total funds for a state-administered health system potentially exceeding $75 billion annually, including $40 billion to $50 billion from new state taxes. Costs could be less or greater than funds. • Potential state and local government savings in the hundreds of millions of dollars annually over time if these governments limit their contributions to the new health care system. • Potential state revenue losses initially as much as a few hundred million dollars annually. Long-term effect on state revenues is uncertain, but probably not major in context of the total state economy.

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Popular Vote Results

Y: 2212691; A: 26.6; N: 6110899; B: 73.4

Election Type

General Election

Proposition Type

Initiative Constitutional Amendment and Statute.

For Author

MARY TUCKER, Vice-Chair, California State Legislative Council American Association of Retired Persons; KURT LAUMANN, R.N., President, California Nurses Association; JOHN PROCTOR, President, California Small Business Council --

Against Author

LARRY McCARTHY, President, California Taxpayers' Association; CAROL DENTON, R.N., Executive Director, Organization of Nurse Executives/California; MARTYN B. HOPPER, State Director, National Federation of Independent Business/California --

Rebuttal Author

JAKE HANSEN, Director of Government Affairs, The Seniors Coalition; DR. DAVID R. HOLLEY, M.D., Member, Board of Directors, California Chamber of Commerce; RICHARD C. CARLSON, Economist, Spectrum Economics --

Rebuttal Against Author

HARRY SNYDER, Co-Director, West Coast Regional Office, Consumers Union; MARLYS ROBERTSON, President, League of Women Voters of California; KRISTA FAREY, M.D., Legislative Director, California Physicians Alliance --