Display:
Prop 13 passed after the Dems and Willie Brown studiously ignored the complaints of the elderly that they were being taxed out of their paid for homes.  Instead of dealing with that specific complaint, they allowed the situation to fester and Jarvis and Gann used the frustration to pass Prop 13 and the Gann Innitiative, which put the state finances in a straight jacket.  Not just the elderly, but ALL real estate taxes were frozen at the rate in effect at time of purchase and the applied to COMMERCIAL real estate, including rental appartments, of which Jarvis was the biggest owner in all of California at the time.

It may take the spectacle of watching "the beast" starve to provide the motivation to undo this.  Nursing homes may close, dumping tens of thousands of frail elderly back onto family, if any.  Welfare assistance will evaporate during the worst employment market since the '30s.  Schools are taking a big hit already--there is no summer school pretty much state wide, and educational requirements are being "upgraded" to offer a means of eliminating teachers, class sizes are being increased, etc.

The problem is that all of the initiative driven restrictions on state government's ability to tax has left the state heavily reliant on volatile revenue sources and this is highly pro-cyclical.  This current crisis MIGHT provide an opportunity to undo all of this, but I haven't seen anyone step up to publicly explain all of this in an intelligible manner.  That would be like Obama taking on Wall Street.  So I will believe in sensible reform of state revenue when I see it.

My own view is that the best prospect for change is via a new Progressive Party.  It has been said that the times call forth the man.  May it be so.

As the Dutch said while fighting the Spanish: "It is not necessary to have hope in order to persevere."

by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Wed Jul 1st, 2009 at 11:04:01 PM EST
[ Parent ]
I was living in California when Prop 13 passed.  At the time I told everybody who would listen it was a stupid idea, promoted by stupid people, and was addressing the symptom not the problem.  The problem was a demographic influx that swamped California's infrastructure.  Californians want all that stuff but they don't want to pay for it and it was Ronnie Rayguns who told them they didn't have to.

Well, the chickens & roosting.

When granny comes marching home they will find out just how much it costs to keep the old biddy alive.  When their kids can't get a public education they will find out how much it costs to private/home school the little brat ...

and so on and so forth.

Personally, I find it all highly gratifying amusing.  

by ATinNM on Thu Jul 2nd, 2009 at 01:01:31 AM EST
[ Parent ]
But unless someone puts together a narrative that explains in big easy-to-read letters how A leads to B leads to Epic Fail, the libertarian lunatics will frame this as yet another failure of the concept of central government.

A hundred thousand Randian crazies will continue to hold the state hostage because they're either living in the proverbial parental basement, or too rich to notice. Either way they won't be personally affected.

The problem is the canyon-sized disconnect between egotism and consequences among the other voters on the centre and the right. If no one explains how one leads to the other, they still won't understand.

by ThatBritGuy (thatbritguy (at) googlemail.com) on Thu Jul 2nd, 2009 at 06:33:43 AM EST
[ Parent ]
Explanatory narratives don't fall from trees as you well know.  It takes work as well as time to develop a persuasive message and then years and decades pushing it for the message to 'percolate' through the culture.  

The Right has funders willing to pocketbook the process.  The Left doesn't.  It's really quite that simple.  

by ATinNM on Thu Jul 2nd, 2009 at 10:12:21 AM EST
[ Parent ]
We were living there as well, and I voted against all of those initiatives and argued against them.  Pissing into the wind.  There had been a significant run up in real estate prices, much of it driven by wealthy immigrants, but also affected by the increase in oil prices post the Saudi Oil Embargo earlier in the decade. (At the time I concluded that, if oil was going to cost three times as much, then the property holders figured that, BY GOD, their property was going to be worth three times as much.)

The most dramatic impact was on local government as Prop 13 capped tax rates at 1%--the ultimate anti-Georgist measure.  Then, IIRCC, SCOTUS rulings about equality of educational funding between rich and poor districts led to most funding for school districts being shifted to the state.  The two thirds majority requirement for tax increases has led to the Cave Men blocking any tax increases except the most regressive, such as sales tax, which are also the most pro-cyclical, dropping rapidly during recessions.  The Gann initiative required that, during boom times, money could not be spent on capital improvements, as spending was limited to a formula based on population growth, with adjustments for shifts of responsibility among governmental agencies.  Doing anything other than returning money to taxpayers required legislative action, which, again, was blocked by the Cave Men.

As the Dutch said while fighting the Spanish: "It is not necessary to have hope in order to persevere."

by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Thu Jul 2nd, 2009 at 11:11:28 AM EST
[ Parent ]

Display:
Login
. Make a new account
. Reset password
Occasional Series