The Strange Logic Behind Prop 13 and Prop 98

Joe Mathews's picture
Journalist and Irvine senior fellow at the New America Foundation. He is co-author of California Crackup: How Reform Broke the Golden State and How We Can Fix It (UC Press, 2010).

Last week, Prop 98 author John Mockler and state Supt. of Public Instruction Jack O'Connell conducted a press conference on the threat to the state posed by another suspension of the education funding guarantee. And it got sort of kinky. Mockler described Prop 98 as having been "bended," "folded," "mutilated" (and a few other adjectives) by the Schwarzenegger administration.

O'Connell and Mockler talked about how California ranks low in state support for education. They argued persuasively that our schools need better funding.  I agree. But, in the next breath, they talked about the need to protect Prop 98. That's where they lost me.

The logical problem with the argument for protecting Prop 98 is a mirror image of the logical problem with the argument for protecting the 2/3 vote for tax increases that was part of Prop 13. To review: conservatives tell us that California is a mess of over-taxation and over-spending. Then they tell us that without the 2/3 vote and Prop 13, California would be a mess of over-taxation and over-spending. Which is it, guys? Prop 13 has been in place for 30 years, so if you believe that the states taxes and spends too much, it seems safe to conclude that the 2/3 vote doesn't really prevent higher taxes and high spending. It'd be far more logical to assume that the 2/3 vote is part of the problem.

On Prop 98, it is liberals making the illogical argument. Liberals argue (rightly, I believe) that California schools are an under-funded embarrassment. But then they say that we have to protect Prop 98 to prevent our schools from being an under-funded embarrassment. Which is it, folks? Prop 98 has been in the California constitution for 20 years. If our schools are under-funded, it's logical to consider Prop 98 part of the problem.

How's that? Prop 98 is based on complex formulas that involve a variety of economic and budget factors. But what Prop 98 doesn't account for is need and the costs of great instruction. Instead, it creates a culture of just hitting the minimum-politicians can fund the minimum guarantee and say they protected education. So the budget debate about education revolves around the question of whether we're funding the Prop 98 minimum-not whether we're giving schools the resources they need.

Ideally, we wouldn't have an education funding guarantee. The legislature would do the job, and face the consequences if schools weren't properly funded. But there's no way that could happen politically.

So what we need is a better education funding guarantee. We need a process - that is open but not dominated by interest groups -- through which, based on the best research and data, the state determines what is needed to make California children the best educated in the world - materials, technology, teachers. Then you estimate your student population, multiply the amount needed by the student population, and then require that schools have to receive that amount. Such a guarantee would focus political debate on education (not on the budget) and on what sort of instruction and resources are needed to produce top results. Designed correctly, such a process would create incentives to find ways to provide the necessary education in a more cost effective way.

It makes no sense to cling to a guarantee that essentially guarantees a certain part of the budget and new revenues for education. Such a guarantee, which we have in Prop 98, isn't a policy. It's a fetish. If schools are our top priority in the state (and they should be), we need to make sure we're giving them what they need to do the job, irrespective of the rest of the state budget.

There's a lot of talk about initiatives to change Prop 13. Fine. But it's also time to revisit Prop 98 too.

On Education Spending

It's complicated (too complicated--one of the problems with Prop 98 and the whole education spending apparatus). By some measures, we have plenty of money. By others, we don't have nearly enough. I'm convinced by the charter school people, who are no fans of unions or bureaucrats, that it's mostly the latter. Not nearly enough. Charter schools are public schools but exempt from many regulations and rules. The charters get the ADA money (the money tied to students). Leading charter school programs -- among them KIPP -- operate in multiple states, and they are unanimous in describing California as being the least generous in ADA money of any state. Steve Barr, head of Green Dot charter schools, recently told me that when he went to New York to open schools (after years in LA), he was shocked. He had literally twice as much money per kid. Barr is no fan of unions or bureaucrats. (He has compared the head of LA's teachers union to swine, and has said worse about LAUSD).

Re: California Screaming

What I think we need here is a distinction between the 2/3 voting requirement as simple legislative process and the requirement as an institutional reality. Clearly it's harder to get 2/3 of a body's legislators to vote yes on a particular issue than a simple majority. But the question here is what is the effect of said requirement on state governance as a whole. That is what outcomes does the process tend to produce and what sort of incentives does it produce. The reality (as Joe Matthews points out) is that we have hight taxes and the 2/3 requirement and in theory (as commenter Joe points out) the requirement devolves accountability in our winner take all system. Thus, it seems likely that the 2/3 requirement is a part of the reason for our current high taxes.

Richard proves once again

Richard proves once again that the Republic party's right wing defenders have no idea how to formulate an argument. You could rebut the arguments in the article, but you're unable to do so. Sleep well, sir.

OK if this logic holds then

OK if this logic holds then Obama should pray that Congress has a 2/3 vote to pass his tax increase on the rich. Oh yeah he only has 60 Democratic senators. It really makes no sense. The by-product of higher taxes in California doesn't necessarily mean taxes increases would have not occurred if the 2/3rds requirement was not around. The blame goes to weak Republican politicians in the past.

Let's think about this for a second

Richard on your first point, no one is disputing that the people legally have a write to amend the constitution by majority rule. The question at hand, though, is whether this first revision is good public policy. On your second point, clearly Prop 13 has not stopped California from becoming a high tax state. For your theory (that the 2/3 rule is preventing tax increases)to be true , you would have to believe that California would have even higher taxes without the rule. But to believe that you'd have to accept that California's voters are a bunch of Stalinites. How do you reconcile that with your belief that California voters would unequivocally vote down a change to the 2/3 requirement ("Of course, you scheming hypocrites won't put such a measure on the ballot, because you know you'd lose -- AGAIN.")? So California's voters are anti-tax but pro-politicians that tax them? That doesn't seem to make a lot of sense... I find Matthew's previously stated hypothesis that California Republican's are beholden to their minority status much more plausible.

Prop 13 Discussion

It seems that the author, Joe Mathews, falls in line with the California Bureaucrats concerning the lack of funding in our schools. Joe, you are wrong! We have plenty of money in California Schools, it is just being wasted on excess administration, bureauracy, unions, pensions and general SLOP due to poor negotiations. California loses at all levels because the negotiators are inept. When the Unions are funding your efforts and trips, you don't want them to be mad at you. If Prop 13 was not in place, our property taxes would be worse than New York, New Jersey and other Eastern States. The 2/3 requirement has not stopped our representatives from finding creative ways to squeeze money out of the taxpayer. Ronald Reagan had the best description for our law makers when he compaired them to a new born child with everything going straight through them. THEY DON'T KNOW HOW TO STOP SPENDING!!!!!!!

Richard, 2/3 Drives Higher Spending

Richard, there's nothing silly about it, and you should re-examine your logic. We have the evidence of budget after budget, when the compromise needed to reach 2/3 means putting in new spending (paid for by borrowing and accounting gimmicks) to buy those last few votes. The Center for Governmental Studies looked at this a few years back, and concluded the same. 2/3 juices spending. In a majority vote system, the majority is accountable for over-spending--you know who to blame. But 2/3 requires a conspiracy between the two parties, thus making it harder to fix the blame for the extra spending that is needed to close budgets. As for your post on taxes, I'm not sure the progressives and liberals will accept me as one of their own. (I'm a decline to state, and very much a centrist. I even vote for Republicans sometimes). I don't want to make it easier to raise taxes. I don't want to make it easier to spend. I want to make the legislative majority accountable for their tax and spending decisions. 2/3 doesn't prevent tax increases or spending hikes (as you've pointed out, we've had plenty of both, including tax hikes passed just this February, in the middle of a terrible recession). It's merely a formula for making the majority party unaccountable for the state of the state, and permitting the minority party to make mischief and do brinksmanship. That system is good for cowardly politicians, it's good for interest groups of the left and right that get to protect their stuff (damn the public interest), but it's not good for the state. This is rather obvious to anyone looking at this from a non-partisan perspective. I'm not registered with either political party and don't care what kind of budget (a Democratic one with high taxes and higher services, or a Republican one with lower taxes and lower services) we have at this point--I'd just like one that's passed on time and doesn't kick the can down the road. 2/3 makes that harder.

Liberals oppose simple majority voting when it suits them

The liberals' love of majority rule is pure hypocrisy. After all, it was a simple majority California citizen vote that IMPOSED the 2/3 majority rule on raising some taxes. IF you progressives are serious about bowing to the rule of the majority, we can settle this once and for all. Liberals, put a statewide prop on the ballot to repeal the 2/3 majority vote rule for new taxes -- returning to a simple majority vote requirement. If it passes by a simple majority vote, it becomes the law of the state. If not, gracefully accept defeat. Of course, you scheming hypocrites won't put such a measure on the ballot, because you know you'd lose -- AGAIN. And not by some close vote either. And not from a lack of spending -- your unions would spend over $100 million to support such a measure. You'd outspend opponents 20 to 1. All for naught. Be honest. You simply want to make it easier to raise taxes -- REGARDLESS of the will of the citizens.

Another silly article from Joe

I see. The author Joe opines that the 2/3 majority vote requirement for passing SOME higher taxes is a major reason we have higher taxes and excessive spending. A more illogical assertion cannot be made. If this silly statement is true, then the easier it is to pass tax increases in a Democrat state, the lower our taxes would be -- and the less government spending would occur. Does ANYONE believe that? Including the author? This is embarrassing.



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