CALPIRG 2010 Legislative Priorities

Corporate Tax Break Transparency:

Corporations in California are projected to receive more than $4 billion from tax breaks in 2010.  From economic development to job creation, this money has a specific purpose.  Unfortunately, the recipients are currently shielded from having to disclose who they are or how much they take in tax breaks every year so holding them accountable is impossible. 

Before we cut billions from vital state programs we need to make sure that the money we are currently spending is going to the right places. 

This year CALPIRG is the sponsor of legislation to improve the transparency of tax breaks going to corporations.  The corporate tax break transparency bill authored by Senator Dean Florez will:

-       Require the Franchise Tax Board to disclose the names of corporations that take more than $1000 of any one tax break as well as how much they take.

-       Require the reported information to be posted on the state transparency website, www.reportingtransparency.ca.gov

Making Healthcare Work for Californians:

Few problems threaten the state more than the health care crisis facing California’s patients and small businesses.  Rising costs could double health insurance premiums within the next decade, placing coverage out of reach for young people, entrepreneurs, and ordinary Californians – as well as placing an increasing strain on already precarious state budgets.  And insurance industry abuses continue to inflate costs and prevent those who need health care the most from getting the coverage they need.

These are some of the concrete ways California can act now to eliminate wasteful health care spending and relieve the burden of rising costs on working families and struggling businesses:

Ensuring Insurer Efficiency—When consumers buy health insurance, they have no guarantee of a fair return on their health care dollar.  Their premiums should go primarily towards care, but they sometimes go disproportionately to administrative overhead instead. California should pass legislation requiring insurers to spend 85 percent of premiums on health care benefits. 

Giving Consumers Better Information—Currently, consumers wishing to buy insurance are confronted with the confusing task of comparing wildly different plans, making it almost impossible to discover the best choice.  Lawmakers should create a standard to categorize insurance plans on a one-to-five star or tier system, including a uniform, benchmark plan within each tier, to enable consumers to make apples-to-apples price and benefit comparisons.

Implementing Federal Reforms—If reform does pass, California lawmakers will have the opportunity to set rules for new, consumer-friendly health care purchasing pools called exchanges.  By opening these exchanges up to more Californians, and giving them the ability to bargain strongly on behalf of their enrollees, these rules will protect consumers and give them more, better choices of health care coverage.

Keeping High Speed Rail On Track:

California’s highways and airports are increasingly congested. Our state’s transportation system remains dependent on oil. And our existing transportation infrastructure is inadequate to the demands of the 21st century.

California needs to build high speed rail to meet our 21st century transportation challenges.

While there are a lot of unknowns about the future, one thing that’s certain is that the project will be more difficult and more expensive to build the longer we wait.

The good news is high-speed rail construction will provide jobs throughout the state, jobs that California workers need now. The High Speed Rail Authority estimates that 600,000 job-years will be needed to construct Phase 1 of the high-speed rail project, and that the train’s operation will employ 6,000 Californians. 

That’s why it’s critical that we move the project through the environmental review process over the next few years, make needed decisions about the exact placement of the tracks and stations, and start construction promptly.

In the coming months and years, CALPIRG will focus in particular on two components that are critical to the success of the project and the protection of taxpayers:

1)    To reduce traffic congestion and pollution and encourage high-speed rail ridership, high-speed rail stations should link up to robust local public transit options. We’re encouraging cities to invest in transit hubs around high-speed rail station stops, and encourage this Legislature to also invest in public transit services in the state budget.

2)    Public-private partnerships should only be brokered with robust taxpayer protections. We recognize that private investment is critical to the business plan, but we should ensure that financial risks and benefits are shared fairly between private investors and taxpayers. 

For more information about any of these issues please contact Pedro Morillas CALPIRG Consumer Advocate (916) 448-4516 x112 office, pedro@calpirg.org.