The 2022-23 Budget: Vote by Mail Ballots: Prepaid Postage

The 2022-23 Budget: Vote by Mail Ballots: Prepaid Postage MAY 2022 Summary. In April, the administration proposed Counties Administer Most Elections and an adjustment to the Governor’s proposed 2022-23 Pay Elections Costs. As historically has been budget to reimburse counties for their costs related the case across the United States, counties in to the prepaid postage mandate for Vote by Mail California administer most local, state, and federal (VBM) ballots. Specifically, the administration elections pursuant to state and federal law. Cities, proposes $5.8 million in one-time General Fund and special districts, and schools pay for a share $5.9 million ongoing General Fund to reimburse of elections costs, often as a reimbursement to counties for the cost of providing prepaid postage their county based on the proportion of the ballot on VBM ballots in qualifying elections, which the dedicated to the local governments’ candidates Commission on State Mandates (commission) and issues. Neither the state nor the federal found to be a state-reimbursable mandate. Given government provides regular payments for county the state’s interest in uniform elections across the elections administration. state, we recommend funding this mandate to Californians Can Vote in Person or by Mail. reimburse counties for the associated costs. Under state law, a voter has two ways to cast a ballot. Voters can use a VBM ballot and return it Background to elections officials using either (1) the United California Constitution Requires the State to States Postal Service (USPS) or (2) a ballot drop off Reimburse Local Governments for Mandated location. Alternatively, voters can vote in person at Activities. State law tasks the commission with a voting location. determining whether new state laws or regulations State Law Requires Elections Officials affecting local agencies create state-reimbursable to Provide Prepaid Postage for VBM Ballot mandates. If the commission determines that Return Envelope. A VBM ballot consists of the a statute or regulation contains a reimbursable ballot itself and an envelope for the voter to sign mandate, it develops an estimate of the statewide and use to return the ballot to their elections cost of the mandated activity. Typically, the process official. Chapter 120 of 2018 (AB 216, Gonzalez for determining whether a law or regulation is a Fletcher) requires elections officials to include state-reimbursable mandate takes several years. on the return envelope prepaid postage so that State law further requires our office to analyze any the voter does not pay for USPS to deliver the new mandates identified by the commission as ballot to the elections official. At the time of the a part of our annual analysis of the state budget. legislation, voters had to request a VBM ballot from In particular, state law directs our office to report on their county elections official. Elections officials the annual state costs for new mandates and make did not proactively provide a VBM ballot to all recommendations to the Legislature as to whether registered voters. a new mandate should be repealed (permanently Commission Determined Requirement eliminating it or making it optional), suspended to Provide Prepaid Postage for VBM Ballot (rendering it inoperative for one year), modified, Return Envelop Created Reimbursable State or funded. Generally, reimbursable mandates are Mandate. The commission found that, for most created when the state requires local governments elections, Chapter 120 creates a reimbursable state to provide new or higher levels of service. mandate and that the state has a constitutional requirement to reimburse counties for the cost of 2022-23 Budget Series 1 the prepaid postage on the return envelope and …Likely Increasing Use of VBM Ballots any related labor costs. The commission found and Postage Costs. Voting by mail has been an that Chapter 120 does not impose a reimbursable increasingly popular method for Californians to cast state mandate in a few instances, such as when their ballots. With all voters receiving a VBM ballot the election could have been consolidated with under Chapter 312, we think the share of votes a regular election under state law (for which cast using a VBM ballot likely will be higher going state funding for postage is required under this forward. That being said, not all VBM ballots are new mandate). returned by USPS—many are dropped off at voting locations or in drop boxes. (In the November 2020 Governor’s Proposal General Presidential Election, 38 percent of the Funds Mandate Reimbursement Costs. 15.5 million VBM ballots cast were sent to elections The administration proposes an adjustment to officials via USPS.) The $5.9 million identified the Governor’s 2022-23 budget to reimburse ongoing cost for the mandate seems reasonable; counties for their costs related to the prepaid however, actual costs could grow over time and postage mandate for VBM ballots. Specifically, the depend on (1) the number of voters who return a administration proposes $5.8 million in one-time VBM ballot using USPS, (2) the length of the ballot General Fund to reimburse eligible counties for the (longer ballots will be heavier and require more costs they incurred complying with the statute while postage), and (3) USPS postage rates. The state’s it was under review by the commission. Additionally, costs to reimburse local governments for these the administration proposes $5.9 million ongoing costs will depend on the claims filed. General Fund to reimburse counties for the cost LAO Recommendation of providing prepaid postage on VBM ballots in qualifying elections moving forward. Fund the Mandate. The intent of Chapter 120 was to ensure uniformity of elections administration LAO Comments across the state and to prevent postage costs from Since Enactment of Chapter 120, State Law being an impediment to voters exercising their right Now Requires Elections Officials to Mail VBM to vote. The commission has found that requiring Ballot to All Registered Voters… A subsequent prepaid postage for VBM ballots is a reimbursable state law, Chapter 312 of 2021 (AB 37, Berman), state mandate. Given the state’s interest in uniform now requires elections officials to send every elections across the state, we recommend funding registered voter a VBM ballot, rather than only this mandate to ensure counties are reimbursed for upon the request of a voter. (Due to public health the costs associated with the mandate. concerns arising from the COVID-19 pandemic, state law temporarily required elections officials to send all registered voters a VBM ballot in 2020.) 2022-23 Budget Series 2 2022-23 Budget Series 3 LAO PUBLICATIONS This post was prepared by Nick Schroeder, and reviewed by Ginni Bella Navarre and Carolyn Chu. The Legislative Analyst’s Office (LAO) is a nonpartisan office that provides fiscal and policy information and advice to the Legislature. 2022-23 Budget Series 4