In the States, Taxes and Health Issues Dominate Ballot Initiatives

Americans are voting today for more than presidential and congressional candidates. They’re deciding the fate of state ballot initiatives and referendums that include home care for the elderly, income tax repeal and payday lending measures that would permit interest rates of 391 percent.

Residents in 36 states will vote ballot initiatives that are proposed by citizen petitions, mandated by state law or pushed by special interest groups. Altogether, the 153 proposals reflect a wide range of concerns.

“The initiative movement came about as a way to provide an outlet when the legislature is not responding to popular demand,” said Jennie Drage Bowser, a policy analyst at the National Conference of State Legislatures. “What’s on the ballot reflects what Americans are thinking about and talking about.”

Here is a sampling of some ballot proposals of special interest to voters age 50 and older:

Stem cell standoff

In Michigan, residents will vote on the Stem Cell Initiative, which would allow embryos produced in fertility clinics and which would otherwise be discarded, to be donated to science for disease research. Government would be allowed to help finance stem cell science, though human cloning would remain illegal. While 45 other states allow stem cell research, Michigan currently has one of the nation’s most restrictive laws on this type of science. The political battle over this measure reflects the national one. Supporters include former President Bill Clinton, cancer researchers and science foundations. Opposition includes Right to Life Michigan and the Michigan Catholic Conference. Two initiatives in Florida focus on stem cell research; one wants to ban state funding of research, the other approves funding.

Whack the tax

Repealing or reducing state income taxes is on the ballot in Massachusetts and North Dakota. Question 1 in Massachusetts would cut the state’s income tax by 26.5 percent in 2009 and totally eliminate it in 2010, while North Dakota’s proposal, Measure 2, would halve its income tax and cut corporate tax by 15 percent. In North Dakota, opponents say the cuts would benefit the very wealthy and large businesses while greatly reducing the state’s ability to invest in education and health care. North Dakota has a state budget surplus, but Massachusetts, like many other states, is reeling from the failing economy and shrinking tax revenues. Experts say the repeal of the income tax could mean an additional 40 percent reduction in revenues that would have a huge impact on services from home care and prescription drugs to day care and 911 emergency service. The Massachusetts proposal, supported by the National Taxpayers Union, is opposed by a long list of associations, from AARP Massachusetts to Boston police, firefighters and teachers groups, Catholic Charities of Boston and the Area Agencies on Aging. Opponents point out that cutting the income tax in these states also would almost certainly preclude property tax relief and could lead to higher property taxes.

Five other states have initiatives that would cut or limit taxes.

Payday loan protection

In Ohio and Arizona—states where payday lending branches that provide high-interest, short-term loans outnumber Starbucks and McDonald’s combined—voters will decide on ballot initiatives that would undermine new state regulation of these loans. The payday loan industry has spent a total of $30 million backing these ballot measures, according to the Wall Street Journal. Arizona and Ohio have laws that took effect this year capping annual interest rates at 36 percent and 28 percent, respectively, effectively outlawing payday lenders, whose business model “depends on average annual rates of 391 percent,” the Journal reports. In Ohio, Issue 5, which is backed by the industry, asks voters whether they want to keep the state law, so a yes vote protects lower interest rates, says AARP Ohio. In Arizona, Proposition 200, which the payday loan industry supports, asks voters to “reform” the law that caps interest rates. AARP Arizona and other consumer groups support a no vote on that proposition.

Rules for home aides

Regulating home health care workers is an issue on the ballot for voters in Missouri and Washington state, which each has a proposal backed by the Service Employees International Union. Proposition B in Missouri would establish a commission to recruit, train and stabilize the home care workforce hired under Medicaid. In Washington, I-1029 would require people who work with older and disabled people to receive 75 hours of training, take a written exam and undergo increased criminal background checks to be certified. Supporters include the Western and Central chapters of the Alzheimer’s Association and Gov. Chris Gregoire, D. Opponents of I-1029, including a governor’s task force that reviewed the proposal, say the training and extra checks would cost the state millions of dollars in a time when it is projecting big budget shortfalls. The task force and the state’s aging services office says most caregivers were already adequately trained for their jobs.

Choosing a health plan

In Arizona, voters will decide Proposition 101, which prohibits any law that would restrict a person’s choice of private health care plans. Supporters—including groups of doctors, dentists and chiropractors— say its intent is to make patient freedom the top priority of health care reform. Opponents, including Arizona AARP, Gov. Janet Napolitano, D, medical providers such as the Arizona Hospital and Healthcare Association and a dozen chambers of commerce, say the measure could prevent the state from creating a system that ensures that everyone has access to health care, and could even cause residents who rely on Medicare and Medicaid to lose coverage.

Redrawing the lines

In California— where the partisan divide in the legislature is so deep that lawmakers couldn’t agree on this year’s budget or last year’s health care reform—it’s difficult to protest the stalemate by voting out entrenched politicians because districts have been carefully drawn to favor incumbents. Proposition 11 would create a bipartisan citizens commission to redraw boundaries for legislative districts. California AARP, Common Cause, the League of Women Voters and Gov. Arnold Schwarzenegger, R, along with former Gov. Gray Davis and others, support this measure as a way to make the legislature more responsive to voters’ concerns. Utah and Oregon also have redistricting measures on their ballots.

A good death?

In Washington state,voters will decide on I-1000, an initiative on doctor-assisted dying that supporters call Death With Dignity and opponents call the Assisted Suicide Initiative. The measure would permit competent, terminally ill adult residents—whose doctors have predicted they have six months or less to live—to request and self-administer lethal medication prescribed by a doctor. Politicians and medical groups are lining up on both sides of this highly emotional issue. The Washington Medical Association opposes the measure, for example, while the American Medical Student Association supports it and the Washington State Psychology Association remains neutral.

Barbara Basler is a senior editor on the AARP Bulletin staff.