At Politifest tomorrow I’ll be discussing the November ballot measures with my CalMatters colleague Wendy Fry, so here’s a sample of that session. This week we’ll focus on bread-and-butter measures about rent control, minimum wage and more.
If you’re one of those political wonks who enjoys enlivening family dinners with election banter, you might already know about these. But if you want a quick taste of the ballot measures, we’ve got you.
These propositions are aimed at one of the biggest problems facing California; skyrocketing costs of living. Proponents want to hike the minimum wage to give lower paid workers more earning power, and stabilize rent to make sure people can stay in their homes. But critics warn these could worsen the very problems they’re intended to solve.
Raising the Minimum Wage
Proposition 32 would boost the minimum wage, in a race with inflation. The state minimum wage has steadily increased from $10.50 per hour in 2017 to its current rate of $16 per hour. But that’s not enough to get by in California, where inflation has spiked the cost of living, leaving wages trailing.
This ballot measure would boost hourly wages to $17 now and $18 in 2025 for employers with 26 or more employees. For businesses with 25 or fewer employees the increases would take effect in 2025 and 2026 respectively.
Workers in specific industries are already entitled to higher wages; fast fast food workers got a $20 an hour minimum in April and health care workers will soon get $25.
Supporters, including the California Labor Federation and California Teachers Association, note that minimum wage jobs aren’t just entry level positions; many minimum wage earners work full time, but don’t make enough to support their families.
When they fall short, that puts a bigger burden on taxpayers to make up the gap through food assistance and other services. Raising the minimum wage helps everyone by reducing reliance on social services and boosting local economies, proponents say.
Not quite, opponents argue. The California Chamber of Commerce, California Restaurant Association and California Grocers Association say raising minimum wage could have the opposite effect.
When the state raises the minimum wage, businesses don’t just suck it up. They pass costs onto consumers, who see their expenses for food and other necessities rise. That’s particularly problematic in an inflationary economy, when costs for just about everything are going through the roof.
And not every business will be able to make it work, they warn; many smaller businesses will close, hurting the economy, jobs and state tax revenue even more.
Restoring Rent Control
Proposition 33 would reverse earlier restrictions on rent control, allowing cities to control rent hikes on single family home rentals and new apartments.
The 1995 Costa-Hawkins Rental Housing Act prevents cities and counties from limiting the initial rate landlords can charge new tenants, and from restricting rent increases to most existing tenants. Proposition 33 would repeal that, opening the door for new rent control ordinances.
Housing costs are soaring, and 30 percent of Californians spend more than half their income on rent, according to the Public Policy Institute of California. That’s a big problem in San Diego, where the median apartment rent is more than $3,000 per month according to Zillow.
Supporters of the rent control measure include Veterans’ Voices, California Alliance for Retired Americans and the AIDS Healthcare Foundation. They point out that the cost of housing is devastating to California families, especially single parents and retired people on fixed incomes. The state needs more housing, but in the meantime rent control will keep people in their homes, they argue.
Critics include the California Small Business Association, California Senior Alliance and California Conference of Carpenters. Interestingly, liberals such as our own state Sen. Toni Atkins, D-San Diego, and Asm. Buffy Wicks, D-Oakland, also oppose the measure. They say reinstating rent control rules would discourage developers from building new housing, making the rental crisis worse. It will also hurt mom-and-pop landlords and make it harder for them to lease their properties.
A Ballot Measure Beef
Did you notice that proponents of the rent control measure include the AIDS Healthcare Foundation? Did it seem odd that a healthcare group is flying the flag for a housing issue?
If it did, that’s because the AIDS Healthcare Foundation doesn’t just dispense medication and treatment; they also lease housing of their own. But their record isn’t squeaky clean. The Los Angeles Times reported that tenants of its single occupancy hotels call the foundation a “slumlord,” and complain about squalid conditions and unfair evictions.
Opponents of the housing measure call out the foundation’s president, Michael Weinstein by name, claiming that the rent control measure he’s backing is a “Trojan Horse” that would actually roll back tenant protections and fair housing rules. Proponents claim critics are attacking him over his advocacy for homeless people and those with AIDS.
Another ballot measure, Proposition 34, which would regulate how healthcare providers use prescription drug revenue, is part of that grudge match. It would authorize statewide negotiation of Medi-Cal drug prices and require healthcare organizations to spend nearly all the money they earn from the sale of discounted drugs to support patient care.
Supporters say it enforces accountability, but opponents complain it’s aimed squarely at Weinstein and his healthcare and housing empire.
State Settlement for Family of Bluff Collapse Victims
Gov. Gavin Newsom last week signed off on a $13.3 million settlement to the families of three women who died in a 2019 bluff collapse in Encinitas. The families claimed that years of negligence and dangerous conditions contributed to the deaths of Encinitas residents Julie Davis, her daughter Anne Clave, and Davis’ sister Elizabeth Charles. The women were killed on an Encinitas beach when a 30-foot wide rock slab slid off a coastal bluff and landed on them.
The Sacramento Report runs every Friday and is part of a partnership with CalMatters. Do you have tips, ideas or questions? Send them to me at deborah@voiceofsandiego.org.