A major labor union is working to put a new wealth tax proposal in front of Californians in November. But the proposal would only actually impact a small few — billionaires.

The California Billionaire Tax Act is a one-time tax that, if realized, would unlock revenue from the wealthiest in the state to support a health care system that some elected officials and leaders have warned faces major strain due to federal funding cuts.

The statewide proposal, led by Service Employees International Union-United Healthcare Workers West, has been in the works for some time. Attorney General Rob Bonta issued the official title and summary for the tax act at the end of December, paving the way for proponents to collect the tens of thousands of signatures they’ll need to get this proposal on the ballot in November.

Vermont Sen. Bernie Sanders joined the proposal’s campaign kickoff in Los Angeles on Wednesday, Feb. 18, tossing out numerous figures that illustrated wealth disparities in the United States and likening billionaires having to pay a few billion dollars more in taxes as “pocket change.”

His clear support comes as Gov. Gavin Newsom has opposed it and as the proposal has generated fears it’d force California’s wealthiest residents to flee. Rep. Kevin Kiley of California’s 3^rd Congressional District is set to introduce a bill fighting the tax proposal, saying it’s making California’s “leading job creators” leave preemptively.

Meanwhile, Los Angeles County leaders have turned to a proposed temporary sales tax increase to offset health care funding cuts. In June, county voters will decide whether to back it.

Here’s what to know about the California Billionaire Tax Act.

Who is taxed under the California Billionaire Tax Act?

Californians with a net worth of $1 billion or more and certain trusts would see a one-time 5% tax, according to a filing for the proposal. Proponents said this tax will apply to about 200 people in California.

How is health care changing for Californians under Trump?

President Donald Trump’s “One Big Beautiful Bill Act” implements changes in eligibility for both Medi-Cal, the state’s Medicaid program, and CalFresh, the state’s Supplemental Nutrition Assistance Program.

The changing work requirements, paired with “administrative burden,” could leave one to two million people without Medi-Cal, according to the nonpartisan Legislative Analyst’s Office. By 2028, up to three million people could lose Medi-Cal, both due to OBBA and changes made in California’s budget, Miranda Dietz, director of the Health Care Program at UC Berkley Labor Center, told California lawmakers in February.

Dietz, citing a previous look at the impact of OBBA, said that a projected $20 billion decrease in federal funding would mean 200,000 fewer jobs in the state, nearly two-thirds of which are “directly” in health care.

Also at risk: Hospitals will face lower margins due to fewer Medi-Cal enrollees and more uninsured patients, according to Jason Constantouros of the LAO, citing recent studies. Public hospital systems face $3.4 billion a year in federal funding cuts, the California State Association of Counties said in a report estimating the costs of OBBA.

What does this wealth tax in California do?

The revenue would be used to respond to “urgent, existing health care, education, and nutrition needs,” according to a filing for the initiative. Ninety percent of the revenue this tax generates would go to the Billionaire Tax Health Account, while 10% would go to the Billionaire Tax Education and Food Assistance Account.

Where would the money from the California Billionaire Tax Act go?

It’s supposed to create revenue to fund health care, education, and food assistance through a one-time tax.

Among what the money that goes into the Billionaire Tax Health Account could be used for, according to a filing, include:

There’s something in the water in Castle Rock. Chlorine. Castle Rock Water says it’s all part of routine maintenance and the water is completely safe to drink.

CBS Colorado reporter Olivia Young tested the tap water in a Castle Rock home using a store-bought strip. She found the chlorine was 3.0 ppm. The EPA requires at least 0.2 ppm of chlorine in tap water but no more than 4.0.

Young found the pH of the tap water was around 7.6. Castle Rock Water says they keep the pH of the water between 7.5 and 8.5.

“Something’s not right within our water,” said Apres Coffee owner and Castle Rock resident Madison Vonderach.

While Vonderach says she uses a water filter at home and hasn’t noticed a difference, she says her customers have complained of a chlorine taste in their tap water.

“I have had a frequent amount of people, I would say, close to five different families, actually communicate to me that they’ve been noticing some concerns within their family’s health,” Vonderach said.

One Castle Rock resident told CBS Colorado her tap water has been making her family nauseous and giving her dog diarrhea. Another said his shower smells “like a swimming pool,” and the water has been giving him a sore throat.

“One of them in particular actually shared with me at some point that their wife fell ill and their animal fell ill,” Vonderach said. “Headaches and the stomach bug.”

“The water is safe to drink, but we make this transition to clean up the pipes,” said Castle Rock Water Director Mark Marlowe.

Marlowe says there is chlorine in the water, and that’s a good thing.

“Chlorine has been used for over a century in drinking water to disinfect it and keep it safe,” said Marlowe. “Disinfecting drinking water has been one of the most important achievements of public health in the history of the world, really. So it’s a very important thing.”

Marlowe says water utilities are required by state and federal laws to have a low level of chlorine in their water as a disinfectant. In 2013, Castle Rock Water switched from using chlorine to chloramine as a disinfectant.

“It’s chlorine plus ammonia that creates chloramines, and that’s what we typically use,” said Marlowe.

But Marlowe says when a certain type of biofilm develops on the pipes, chlorine needs to be used, so they’re making a temporary switch back.

“Lots of utilities will make this transition from chloramines to chlorine just to do maintenance on the system and clean that up,” said Marlowe.

Castle Rock Water warned neighbors they may notice discolored water and changes in taste and smell starting Feb. 2. Those impacts are most noticeable in the early days or in water taps closer to treatment plants.

“Down here, I haven’t tasted anything,” said T.A. Ike, assistant general manager at Wide Awake Eatery in downtown Castle Rock.

“The bottom line is, water is safe to drink,” said Marlowe. “There’s no danger to public health.”

Castle Rock Water says chlorine at the current level should not cause digestive or other health issues, and that anyone experiencing health issues should consult a doctor. 

Castle Rock Water will switch back to chloramine in May.

This is the first time the utility has had to do maintenance like this. They anticipate having to do so again in the future, but it could be anywhere from four to 10-plus years before it is necessary.

“The bottom line is they should not notice anything really going forward, except maybe a slight smell of chlorine,” said Marlowe. “You get used to your water, and you’ll stop noticing it, quite frankly.”

If Castle Rock neighbors are testing the water at home and seeing chlorine levels above 4.0, or if they have other concerns, Marlowe says they should contact Castle Rock Water. They can come test the water and make sure everything is okay.

“Call us if you have any concerns, if you think that there’s something that you need someone to look at, have us come out and test the water. We’re very responsive. We’ll be out there right away,” said Marlowe. “We just encourage people to give us a call. We’re friendly here. We like to talk to our customers, and we’d be happy to go out and meet with them and help them understand what we’ve done and explain everything to them.”

Community members can visit CRgov.com/WaterQuality for additional details. Customers with questions can contact Castle Rock Water at 720-733-6000 or by email at Water@CRgov.com.

Other solutions neighbors can try are to buy a water filter. Most Brita-type filters can reduce the level of chlorine and improve taste. Marlowe says neighbors can also leave water out for 24 hours, and most of the chlorine will dissipate.

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