Your Ballot Decoder Guide

Navigate a local ballot that looks like alphabet soup

By Joel Engardio

Do you find it hard to decipher the differences between Prop A and RR? I’ve been explaining the local ballot to voters gathered in living rooms every election since 2012.

My insights come from serving on the boards of two of San Francisco's largest Democratic clubs and writing an award-winning news column about local issues.

We can’t gather in living rooms and take notes with our voter guides this year, so we’re doing them by Zoom. I’ve also published this online ballot explainer for you.

These are the remaining dates of Ballot Explainer webinars if you want to join on Zoom:

Tuesday Oct. 6 at 6pm
Tuesday Oct. 13 at 6pm
Wednesday Oct. 21 at 6pm
Click to RSVP

Background
Voters often ask why they have to decide on so many propositions. San Francisco is run almost entirely by Democrats, which has resulted in warring tribes. They are divided into many different shades of blue that range from pragmatic to socialist. The local civil war among San Francisco Democrats plays out on our ballot.

Perspectives
I do my best to explain all sides of the ballot, while disclosing that I consider my shade of blue as “forward-thinking + pragmatic.” My personal biography is here.

I’m also on the ballot this year. I’m running for supervisor to get City Hall to focus on the basics: clean streets, less crime and better services. Learn more about my supervisor campaign in District 7 (see map) and my view on local issues here.

PROP A — Health and Homelessness, Parks and Streets Bond

What is it? A nearly $500 million bond paid for by property owners (costing the average homeowner about $160 a year).

What is it for? About half goes to buying and improving the facilities that contain services for people with mental illness, drug addiction and/or homelessness. Note: This type of bond can only be used for physical buildings. It will not fund actual services for mentally ill or homeless people. It will only pay to improve the buildings in which services are offered. It will also purchase or construct some transitional housing: 250 supportive housing beds and 75 shelter beds.

The other half will improve recreational facilities in parks and renovate some public spaces like Portsmouth Square.

A small portion — about $40 million — will be used to repave some streets and install curb ramps.

Consequences: San Francisco will incur about $1 billion in total debt after interest. Homeowners won’t feel a tax increase because new bonds are introduced as old ones retire to keep taxes at the same level. Property taxes would go down, however, if a bond were rejected by voters. This bond requires a ⅔ majority to pass.

PROP B — Department of Sanitation and Streets

What is it? Creates a new sanitation department focused on cleaning streets/sidewalks and maintaining street trees. These services are currently provided by the Department of Public Works, which will continue to handle all other city infrastructure needs. It would also create two new commissions to oversee the Department of Public Works and the new Department of Sanitation and Streets.

Consequences: Will cost up to $6 million a year to duplicate bureaucratic functions in a newly created department. Will result in hiring new administrative staff but does not include a mandate to hire more street cleaners.

PROP C — Removes Citizenship Requirements for Board Membership

What is it? Allows non-U.S. citizens of voting age to serve on city boards and commissions.

Consequences: Currently, only U.S. citizens are allowed to sit on city boards and commissions. This ballot measure would allow non-citizens to serve on city commissions, as long as they were of voting age and city residents.

PROP D — Sheriff Oversight

What is it? Creates a new city commission to oversee the Sheriff’s Department. Also creates an inspector general dedicated to investigating misconduct by sheriff’s deputies who guard county jails. The sheriff oversees jails, courthouses, City Hall and San Francisco General Hospital.

Consequences: More than $2 million in staffing and administrative costs. Since Sheriffs derive their power from the state constitution and local governments are limited in their ability to control an elected sheriff, the commission and inspector general would not have the authority to fire or discipline employees. They would only serve in an advisory capacity. 

PROP E — Police Staffing

What is it? Removes a minimum police staffing requirement in the City Charter. San Francisco is supposed to have at least 1,971 police officers. SFPD has never met this standard in 25 years. Prop E will replace the minimum number with a requirement that SFPD submit a report on staffing levels every two years.

Consequences: The Police Commission would not be required to accept or adopt any of the recommendations in the police staffing report presented by SFPD every two years. In March 2020, City Hall released an independent police staffing study by Matrix Consulting Group. It recommended that a city the size of San Francisco needs an additional 250 police officers.

PROP F — Business Tax Overhaul

What is it? Changes how San Francisco collects taxes from businesses. We used to have a payroll tax system. Then we moved toward a gross receipts system with most businesses subject to both. This ends payroll and makes taxation entirely based on gross receipts.

How does it work? Increases the overall business tax rates by 15 to 20 percent for some industries, such as technology, banking, legal, and life sciences, phased in over four to five years. But it provides temporary rate reductions for three years for industries like hospitality, restaurants and retail that are most impacted by the pandemic. It also raises the threshold that triggers the tax, which will exempt more small businesses from the business tax.

Consequences: It would raise about $100 million in ongoing revenue. Supporters say fully eliminating the payroll tax will encourage businesses to hire again. Exempting small businesses from some taxes will help those businesses regain their footing and avoid closing. The new revenue from the tax increases will help the City Hall fill a massive deficit. Opponents worry about increasing business taxes during an economic downturn. With more people working from home, it will be easier for companies to move out of San Francisco to cities that charge fewer business taxes. This could result in greater loss of jobs and tax revenue for San Francisco overall.

PROP G — Youth Voting in Local Elections

What is it? Allows 16 and 17-year-olds vote for local offices if they are U.S. citizens and San Francisco residents. This is identical to a 2016 measure that failed by 52 to 48 percent.

Precedents: Four cities in Maryland already set 16 as the minimum age to vote for local offices. Berkeley lowered the voting age to 16 for school board elections. The U.S. Constitution does not mention a minimum voting age.

PROP H — Neighborhood Commercial Districts and City Permitting

What is it? Streamlines and simplifies the permit application process for small businesses and updates outdated zoning laws. Creates a speedy 30-day process for businesses located in defined commercial and transit corridors. A recent Chronicle article reported the saga of an entrepreneur who spent 16 months and $150,000 on rent, a lawyer and an architect just to sell ice cream — and still not be able to open a store. Prop H would have made that nightmare easier. In addition, it lets businesses selling food and drink also offer workspaces. It also allows “pop up” retail in vacant storefronts.

Consequences: Increased flexibility and efficiency will help a small business affected by the pandemic to change what it sells without the bureaucratic delays such a pivot would have triggered. It also speeds the process for an entirely new business to open.

PROP I — Real Estate Transfer Tax

What is it? Doubles the property transfer tax rate on commercial and residential properties valued over $10 million from nearly three percent to about six percent.

Consequences: The tax is estimated to generate an average of $196 million in annual revenue, ranging from a low of $13 million to a high of $346 million. This wide range underscores the volatility of the real estate market and why the tax can’t be counted on to fund a program that requires a steady income. Prop I would give San Francisco the highest transfer tax rate in California, which could prevent construction of new homes and reduce jobs — not to mention suppress supply and make housing even more unaffordable.

PROP J — Parcel Tax for School District

What is it? A parcel tax paid by property owners. It replaces a $320 annual parcel tax for schools from 2018 that is being challenged in court. The new parcel tax is nearly identical to the 2018 tax but is slightly lower ($288). The original tax passed with 61 percent of the vote, but there is a fight over whether it needed a two-thirds or simple majority. Prop J is a do-over to make the legal challenge moot.

What does it do? Funds a seven percent pay increase for teachers and paraeducators. The average teacher salary in San Francisco is about $76,000, placing it 410 out of 828 California school districts.

Consequences: San Francisco has been collecting the original 2018 the parcel tax, but can’t spend the funds while in litigation. Rainy day funds from the general fund have been paying the teacher raises since 2018 but will run out after this year. Opponents say the parcel tax is unfair because it taxes all parcels the same, regardless of the property value of the parcel. For instance, a small house in the Sunset would pay the same amount of Prop J tax as a skyscraper downtown.

PROP K — Affordable Housing Authorization

What is it? Allows City Hall to acquire, build or rehabilitate up to 10,000 units of subsidized affordable housing. Prop K is sponsored by Supervisor Dean Preston, the first Democratic Socialist elected to the Board of Supervisors, to create a “social housing” pilot program where the government finances affordable housing that is owned and managed by nonprofits or cooperatives of tenants.

Why are we voting on this? Article 34 in California’s constitution requires that any “low rent” housing development proposed by a local government must be approved by local voters. Article 34 was created in 1950 and is considered part of a racist past that encouraged segregation. Attempts to repeal Article 34 have repeatedly failed.

Consequences: City Hall does not have a good track record of managing public housing. Prop K does not include a revenue source, management plan, or location to actually create any housing.

PROP L — Business Tax Based on Top Executive Pay

What is it? A tax on companies that pay CEOs exorbitantly more than regular workers. If the CEO makes 100 times more than the average worker, then the tax on the company’s annual revenue would be increased by 0.1 percent. If the CEO salary is 200 times higher, the tax rate increases 0.2 percent and caps at 0.6 percent. Stock options are included in salary. Small businesses earning less than $1.2 million annually are excluded.

Consequences: Estimated revenue between $60 million and $140 million annually. But no guarantee what the funds will be used for because this is a simple majority tax that goes into the general fund. Only tax measures passed by two-thirds can be earmarked for something specific.

Large businesses might opt to move out of San Francisco rather than pay too many taxes, especially since working from home is now the norm and there is less need for physical offices. Companies could also avoid the tax by turning lower-paid positions into independent contractors.

Measure RR — Caltrain Sales Tax

What is it? Sales tax for San Francisco, San Mateo and Santa Clara counties. The 0.125 tax on retail sales will go toward operating Caltrain, which serves those three counties. 

Consequences: The tax will last for 30 years. It is the first dedicated funding stream for Caltrain, which previously had to rely on fare raises and contributions from country agencies that are not guaranteed. Supporters say Caltrain is vital for the economy and the environment when people need to commute after the pandemic, and Caltrin currently does not have the funds to meet growing demand. Opponents say the sales tax is regressive and disproportionately affect people with low incomes. 

Passage: Two-thirds majority in all three counties: San Francisco, San Mateo and Santa Clara.

STATE PROPOSITIONS

PROP 14 — Stem Cell Research

What is it? The state will borrow $5.5 billion to fund grants for research and development of stem cell treatments. Stem cells have the potential to help treat and cure diseases including Alzheimer’s and cancer.

Background: California borrowed $3 billion in 2004 to jumpstart stem cell research when it was new and at a time when the Bush administration was blocking research federally. Asking voters to continue the program. The money is used for grants dispersed by the California Institute of Regenerative Medicine (CIRM).

Consequences: Chronicle reported that previous state grants helped support the research that led to two approved cancer drugs. A majority of the original funding went to “buildings and other infrastructure, education and training, and the sort of basic research that, while scientifically valuable, is a long way from medical application.”

Opponents say private entities are better suited to do stem cell research. They argue that California cannot afford this bond in the middle of an economic crisis.

PROP 15 — Taxes on Commercial Property

What is it? Creates a “split roll” between residential and commercial property taxes. Homeowners would continue to enjoy the same tax protections under Prop 13. But commercial land will now be reassessed with higher tax rates on a regular basis.

Why it is being proposed: Prop 13 treated large commercial buildings the same as residential homes. When a house is sold, the property is reassessed and taxes reset at market rate. This was not happening with many commercial buildings. Business owners were able to structure deals to avoid reassessment when the property was sold. This caused the state to lose large amounts of revenue, which negatively impacted schools.

Consequences: The split roll could generate between $7 and $12 billion dollars annually the state can use to help cities and schools. Commercial properties worth less than $3 million would be exempt.

Opponents say the pandemic-stressed economy is not the time for a tax increase on businesses. Yet Prop 15 would not take effect until July 2022.

Opponents also say higher property taxes on buildings will mean higher rents for small business tenants. And they argue that if businesses lose their Prop 13 protections, homeowners could be next on the slippery slope.

PROP 16 — Government Preferences (Affirmative Action)

What is it? Allows California and local government entities be allowed to consider diversity as a factor in public employment, education, and contracting decisions.

Background: In 1996, voters passed Prop 209, which banned “affirmative action” programs that considered race and sex in public employment, education, and contracting in California. Prop 16 would repeal Prop 209.

Consequences: Prop 16 does not mandate affirmative action — it only allows it. And Prop 16 does not allow quotas. The Supreme Court ruled that race is a legitimate factor in college admissions, but quotas are a violation of the Equal Protection Clause of the 14th Amendment.

PROP 17 — Voting Rights for People on Parole

What is it? Allows people on parole to vote.

Background: The state Constitution prohibits people in prison or on parole from voting. California currently allows felons to vote after they have completed both their prison term and their post-prison period of parole. Prop 17 would restore voting rights to people on parole as soon as they leave prison. Currently there are 50,000 people on parole in California. 19 states allow people to vote once they have successfully completed their prison sentence but are still on parole.

Consequences: Supporters argue that people who have completed their prison sentence should be given the vote immediately to encourage their re-entry to society and have a stake in their community. People on parole pay taxes, yet are prohibited from voting on those taxes.

Opponents argue that parole in California is for serious and violent criminals. They say parole is intended to let people prove they have been rehabilitated before full liberty, including voting rights, is restored.

PROP 18 — Voting Rights for 17-Year-Olds

What is it? Allows 17-year-olds who will be 18 by the November general election to vote in the March primary.

Consequences: Supporters argue that when 17-year-olds can’t vote in the primary, it discourages them from voting in the general election because they had no say in picking the candidates on the ballot.

Currently, 18 states allow 17-year-olds to vote in primaries if they will be 18 before the general election.

PROP 19 — Changes in Property Tax Rules

What is it? Allow homeowners over age 55 and people with severe disabilities to transfer their lower tax assessments to a more expensive home anywhere in the state up to three times in a lifetime. A once-in-a-lifetime transfer would apply to people impacted by natural disasters.

Background: Currently, transfers are allowed only once in a lifetime and only within the same county or to 10 participating counties that are willing to take transfers from other counties. Children can inherit the original property tax rate on parent’s home.

Consequences: Prop 19 will eliminate the transfer of low property tax for inherited homes, unless the home is the heir’s principal residence.

Supporters say Prop 19 will encourage seniors to downsize from large homes, freeing up space for younger couples with children.

Opponents say Prop 19 is designed to increase home sales to benefit realtors and increase commissions.

The same proposition was attempted in 2018 and failed. This time, changes were made to make it more popular: such as requiring increased tax revenue from plugging the inheritance loophole to go to a wildfire fund used to pay firefighters.

PROP 20 — Changes to Criminal Penalties and Parole

What is it? Attempt to reform Prop 47, which was passed in 2014 and set the threshold for felony theft at $950 (anything less became a misdemeanor). Prop 20 will call it a felony if someone steals $250 worth of goods three times in a row.

What else does it do? Prop 20 allows the following crimes to be charged as a felony, regardless of the amount stolen: firearm theft, unlawful use of a credit card, auto theft, and theft from an elder.

Prop 20 expands the category of felonies ineligible for early parole.

Prop 20 requires the collection of DNA from people convicted of misdemeanors, including shoplifting, forging checks, and certain domestic violence crimes.

Consequences: Supporters say the purpose of Prop 20 is to close unintended loopholes in reform measures like Prop 47.

Opponents argue that Prop 20 will result in extreme sentences for petty theft and will disproportionately impact minorities. It will roll back prison reforms and cost taxpayers millions annually.

PROP 21 — Local Governments and Rent Control

What is it? Allows cities and counties to apply rent control to all housing more than 15 years old and limit rent increases to 15 percent once a new renter moves in.

Background: Rent control in San Francisco currently applies to housing built before 1979 and Prop 21 would extend it to everything built before 2005. Then it would keep moving the date forward automatically to anything more than 15 years old. 

Landlords can currently raise the rent to market rate when a tenant moves out and then that rate is then controlled for the life of the new tenant. Prop 21 would cap rent increases on an vacated apartment to only 15 percent. Single family homes would remain exempt from rent control.

Consequences: Supporters say stronger rent control is needed to keep people housed, especially during a crisis like the pandemic economy.

Opponents say stricter rent control will have the opposite effect by making it less desirable to maintain existing housing or create much-needed new housing. Opponents also say the state has already passed a law that says rents cannot be increased more than five percent annually, as long as the unit is not vacated, and Prop 21 goes too far.

PROP 22 — Rideshare and Delivery Drivers

What is it? Will classify app-based rideshare drivers (Uber) and delivery drivers (DoorDash) as independent contractors and not employees. It will also require rideshare and delivery companies to adopt labor and wage policies unique to these drivers.

Background: About 900,000 Californians drive for rideshares and app-based delivery companies every year. Most work part-time and make about $15 per hour. In 2019, state lawmakers passed Assembly Bill 5, which limited the ability of companies to hire workers as independent contractors. Rideshare and delivery companies had to provide employee protections and benefits. Uber and Lyft created Prop 22 to override the new state law. To make it more palatable, they offered concessions in Prop 22 that will require minimum compensation, some medical coverage, and a rest policy.

Consequences: Opponents say the concessions on minimum compensation and medical coverage are just window dressing and the typical driver will find it too difficult to drive enough hours to qualify. They also say a provision that bans local jurisdictions from setting their own regulations is problematic. 

Supporters say most drivers want the flexibility of being an independent contractor and the rideshare and delivery service millions of consumers have come to rely upon will not be possible if companies are forced to treat all drivers as full employees.

PROP 23 — Regulation of Kidney Dialysis Clinics

What is it? Requires outpatient dialysis clinics to have a physician on site at all hours when patients are being treated. Also requires the same level of care to all patients regardless of insurance, and to report infection-related information.

Background: This was on the ballot in 2018 and failed. Now it is back. Why? Because organized labor has so far been unable to unionize the workers at the dialysis clinics. This is a fight at the ballot box between the union and the owners of the dialysis clinics.

About 600 clinics operate in California serving about 80,000 patients each year. The majority are owned and operated by two private for-profit companies, with an annual revenue of $3 billion.

Consequences: From the Chronicle editorial board: “The lives of some 80,000 Californians with kidney failure depend on dialysis, which typically entails three treatments a week lasting four hours each. That they are at the center of a battle over financial spoils for the second time in as many years is an unfortunate comment on the nation’s health care system as well as the state’s initiative process.”

PROP 24 — Expand Consumer Privacy Laws

What is it? Amends the California Consumer Privacy Act of 2018. Makes it easier for consumers to direct companies not to share their personal data and to correct personal data they collect. It also limits the use of sensitive personal data.

What else does it do? Increase penalties on companies that fail to follow regulations and create a new enforcement arm that would cost about $10 million annually.

Consequences: Consumer Reports and the Electronic Frontier Foundation are both neutral on Prop 24 because they call it a “missed opportunity” to switch the burden from consumers to businesses. Prop 24 maintains an “opt out” standard where the burden is on the individual to tell the company to not collect data. Prop 24 does not force companies to ask consumers to “opt in” before they collect, share and monetize our personal information.

Opponents also say the regulatory agency created by Prop 24 will only stifle the small start-up with legal bills associated with compliance, which only ensures the large tech companies don’t face competition from new innovators. 

PROP 25 — Ending Cash Bail

What is it? Replaces cash bail with a risk assessment algorithm. 

Background: A state law was passed in 2018 to replace cash bail. But the bail-bonds industry paid for a petition drive to put the measure on the ballot in hopes voters will vote no. 

Consequences: Supporters of ending cash bail say it is unfair that some people are able to buy their way out of sitting in jail while awaiting a hearing. The risk assessment algorithm is more fair because a person’s actual risk to society determines whether they remain in custody versus their means. 

Judges would not be required to accept the risk assessment, just as they currently have the discretion to turn down money bail.