The California Journal of Politics and Policy (CJPP) is an online journal of original scholarship, cutting edge research, and informed commentary regarding all aspects of national, state, and local government, electoral politics, and public policy formation and implementation. Published by the Institute of Governmental Studies at the University of California-Berkeley, the Journal provides timely insights and historical and comparative perspective on issues ranging from legislative and electoral concerns to tax and social welfare policy, the courts, campaign finance, and the changing role and character of political media.
Volume 10, Issue 1, 2018
Time to Yell “Cut?” An Evaluation of the California Film and Production Tax Credit for the Motion Picture Industry
Enacted in 2009, California’s Film and Production Tax Credit was a policy reaction to fears that the state had lost motion picture industry jobs to other states and countries. The incentive has since been allocated over $1 billion in taxpayer funding. Advocates hail the tax credit as a success, but is there evidence to support that claim? This study examines motion picture industry employment in California from 1991 through 2016 to determine the impact of the Film and Production Tax Credit and competing incentives offered by other governments. Results show the tax credit had no significant effect on changes in three occupational categories associated with the motion picture industry. Employment was similarly unaffected by competing incentives. Motion picture industry employment in California instead appears to track the national labor market. These findings were robust to several alternative measures and model specifications and advise that California policymakers should eliminate the Film and Production Tax Credit as soon as possible.
Tuition as a Path for Affordability? The Pursuit of a Progressive Tuition Model at the University of California
In an environment of declining public funding and rising tuition rates, many public universities in the US are moving toward a “progressive tuition model” that attempts to invest approximately one-third of tuition income into institutional financial aid for lower-income and middle-class students. The objective is to mitigate the cost of rising tuition and keep college affordable. But is this model as currently formulated working? Utilizing data from the Student Experience in the Research University (SERU) Survey of undergraduates and other data sources, this study explores these issues by focusing on students at the University of California (UC) and 10 research-intensive public institutions that are members of the SERU Consortium. Focusing mostly on survey data from 2014, we find that increases in tuition, and costs related to housing and other living expenses, have not had a significant negative impact on the number of lower-income students attending UC or on their behaviors. Since the onset of the Great Recession, there has been an actual increase in their number—a counterintuitive finding to the general perception that higher tuition equals less access for the economically vulnerable. At the same time, there is evidence of a “middle-class” squeeze, with a marginal drop in the number of students from this economic class. With these and other nuances and caveats discussed in this study, the progressive tuition model appears to have worked in terms of affordability and with only moderate indicators of increased financial stress and changed student behaviors. This study indicates that tuition can and should be a part of the search for a viable funding model for many public universities, like UC, and that demanding lower or no tuition does not appear to be based on any substantial analysis of the correlation of tuition and affordability.
The Ballot Initiative Transparency Act: Examining its Impact on Legislative Compromise in California
In 2014, California passed the Ballot Initiative Transparency Act (SB 1253, or BITA) which provided some of the biggest changes to California’s ballot initiative process in recent decades. BITA went into effect for the first time during the 2016 election cycle and was designed to provide more opportunities for legislative compromise and to allow for more public involvement in the ballot initiative process. Our study examines BITA and its impact on the ballot initiative process. Specifically, we sought to understand the extent of BITA’s impact on influencing the state legislature and the initiative proponents to seek legislative compromise. Furthermore, we examine the implementation of the new mechanisms BITA put in place and offer suggestions for how to potentially improve their effectiveness for future elections.
California has established itself as a leader in efforts to reduce greenhouse gas emissions from transportation. However, the state has not reflected its ambitious policies for greenhouse gas (GHG) reduction and climate action in its practices for allocating state transportation funding. This paper reviews the complex systems through which California generates and allocates state revenue for transportation investment. It finds that the state’s framework for funding transportation projects and programs is disconnected from its GHG goals, reflective more of historical political deals than of contemporary climate policy. The paper also suggests preliminary steps for revising this framework to reinforce GHG reduction goals. Such recommendations are particularly salient given the state’s recently completed study of road user charges as an alternative transportation revenue source, as well as the passage of new legislation that restructures the state’s fuel taxes (Senate Bill 1, 2017). Implementation of road charges or any other new or revised transportation revenue source would need to address the disposition of revenues generated. This paper argues that California should use any such opportunity to align the distribution of state transportation dollars with its climate objectives, not fall back on status quo allocation prac-tices.