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Novemi~ 8, 2002 Issue #40-2002 NOVEMBER ELECTIONS BRING SMALL BUT IMPORTANT CHANGES TO THE LEGISLATURE; GOVERNOR IS REELECTED IN A CLOSER RACE THAN ANTICIPATED; DEMOCRATS TAKE ALL STATE CONSTITUTIONAL OFFICES. California voters this week elected Democrats to all of the state constitutional offices, largely bucking a national trend in which the Republicans strengthened their control over the House of Representatives and regained control of the U.S. Senate. The Republican "wave" swept over most other states, where Republicans gained or strengthened control over a number of state houses as well as winning the Governor's office. While California did, once again, separate itself from these nationwide trends, there were some important changes in the state's elections, especially in the state Assembly. Keep in mind that 54 votes are needed to pass a state budget. Prior to the November elections, Democrats held 50 seats in the Assembly with the Republicans holding the remaining 30 seats. In this week's election Democrats lost at least two Assembly seats, with a third seat that may be decided on a count of absentee ballots. For more, see pa§e 2. VOTERS STRONGLY ENDORSE PROPOSITION 46 TO MEET HOUSING NEEDS At Tuesday's election Proposition 4§, the Housing and Emergency Shelter Trust Fund Act, received strong voter support, garnering 57.5% of the vote statewide. City officials around the state joined with the League's regional representa- tives, Action for Better Cities (ABC), and housing groups like the California Building Industry Association (CBIA), and Housing California, to secure approval of this vital measure. Proposition 46 will provide funding for shelters for battered women, housing for iow-income senior citizens, emer- gency shelters for homeless families with children, housing with social services for the homeless and mentally ill, repairs and accessibility improvements to apartments for families and ha[dicapped citizens, homeownership assistance for military veterans, and security improvements and repairs to existing efnergency shelters. It authorizes the establishment of a new housing trust fund that will be financed by issuing bonds totaling two billion one hundred million dollars ($2,100,000,000). Every city and county is eligible to receive funds as specified in the measure, Commenting on passage of the act, Chris McKenz'e, Execut've D'rector of the League, said 'We want to congratulate Senator John Burton who authored Proposition 46, Housing California, the CBIA, city officials, and all of its other partners in helping make this a successful campaign. Clearly the housing needs of Californians will be better met as a result of voter approval of this important measure, but there is still much more to be done. We are ready to get to work," Page 2 · Cities Utility User Taxes: Election Update Page 3 Voters Approve League-Supported Housing and Schools Ballot Measures; Selective Treatment Of Other Measures · League President John Russo Makes Case For Revamping State's Tax System (Reprint from Metro Investment Report) Page 5 Information Technology Award Winners