Veto Sustains Transparency: Newsom Rejects AB 699
Governor Gavin Newsom exercised sound judgment in vetoing Assembly Bill 699, Catherine Stefani’s (D-San Francisco) measure that threatened to diminish transparency in local elections across California. Newsom’s decision is a welcome affirmation of the public’s right to clear, accessible information regarding new tax burdens and bond indebtedness.
AB 699 sought to undermine existing election law by providing local agencies and measure proponents the discretion to remove essential financial data—specifically the estimated tax rate, duration, and annual revenue—from the ballot label. Instead, Stefani and her state legislature allies proposed to relegate this important information to the voter guide, which many voters do not have time to pore through.
As State Senator John Moorlach previously wrote on these pages:
This bill is too clever by half. Instead of honest transparency, Assembly Bill 699 makes it easier to pass feel-good tax measures that sound great on the surface but hit your wallet later. Since many voters only read the ballot label and do very little (if any) independent research, this slick modification will make tax increase initiatives easier to pass in the voting booth.
But it’s also insulting. Allowing for what can only be described as a cute manipulation, is an affront to the intelligence of California’s voters. It’s a clear message from the majority party that they think voters aren’t smart or engaged enough to notice what’s really going on.
The core motivation behind AB 699 was illuminated by a Senate committee staff analysis showing that measures lose 5%-15% support when voters are directly confronted with the financial costs. AB 699, therefore, functioned less as a mechanism for clarifying complex financial proposals—as its proponents claimed—and more as a tool to insulate new taxes from informed scrutiny. The argument that moving core fiscal facts away from the ballot “enhances transparency” is difficult to reconcile with the principles of good governance.
The Governor’s action is consistent with his prior commitment to maintaining voter safeguards. His veto message mirrors the objections he raised against similar legislation (SB 268) in 2019.
At a time when Californians face high taxes and many local governments are overburdened by debt, maintaining rigorous standards for transparency in local finance is paramount. Newsom’s veto of AB 699 ensures that the state’s Elections Code continues to serve the interest of the voters, rather than the political advantage of measure authors.
Marc Joffe is a Visiting Fellow at California Policy Center.