Proposition Summary

AIR QUALITY IMPROVEMENT. TAX CREDITS. INITIATIVE STATUTE. Authorizes State Air Resources Board and delegated air pollution control districts to award $218 million in state tax credits annually until January 2011, to encourage air-emissions reduction through acquisition, conversion, and retrofitting of: -- vehicles, buses, and heavy-duty trucks; -- hearth products; -- construction vehicles and equipment; -- lawn and garden equipment; -- ambient air pollution destruction technology; -- off-road, nonrecreational vehicles; -- port equipment; -- agricultural waste and rice straw conversion facilities; and through research and development. Requires study of air quality market-based incentive program for prescribed burning projects. Establishes local transportation funds as trust funds. Summary of Legislative Analyst's Estimate of Net State and Local Government Fiscal Impact: Annual net state revenue loss due to new tax credits, averaging in the range of tens of millions to over a hundred million dollars, from 1999 to beyond 2010. Increase in local sales tax revenues, potentially in the millions of dollars annually through 2010-11. State costs of up to $4.7 million annually through 2010-11 to administer new tax credit program. Potential long-term savings to state and local governments, of an unknown amount, in health care expenditures.

Proposition Number

7

Year

1998

Document Type

Proposition

Pass/Fail

Fail

Popular Vote Results

Y: 3313816; A: 43.6; N: 4282557; B: 56.4

Election Type

General Election

Proposition Type

Initiative Statute

For Author

JOHN BALMES, M.D., Co-Chair, Clean Air Advisory Group American Lung Association of California; R. MICHAEL KUSSOW, President, California Air Pollution Control Officers Association; KIT COSTELLO, R.N., President, California Nurses Association

Against Author

DAN AGUIRRE, President, California Association of Professional Scientists; STATE SENATOR QUENTIN L. KOPP; LENNY GOLDBERG, Executive Director, California Tax Reform Association

Rebuttal Author

DAN TERRY, President, California Professional Firefighters; STATE SENATOR QUENTIN L. KOPP; ROLAND BOUCHER, Chairman, United Californians for Tax Reform

Rebuttal Against Author

SENATOR MIKE THOMPSON, Chairman, California Joint Legislative Budget Committee; HOWARD RIS, Executive Director, Union of Concerned Scientists; JOHN VAN DE KAMP, Former California Attorney General

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