Anti-Prop 13 Chorus Singing Again
“It’s all Prop 13’s Fault” chorus is at it again. You can count on them like clockwork during difficult economic times – world recession not withstanding – to blame Proposition 13 for California’s economic woes in commentaries and cartoons. I often wonder where this chorus goes when government treasuries are flush.
Chris Reed of the San Diego Union-Tribune points to statistics in his blog that show property taxes under Proposition 13 have increased faster not only than population and inflation growth, but faster than other sources of state revenue as well, despite the property tax cap.
Yet, while these other state taxes, such as the income and sales tax, are susceptible to volatile swings tracking the economy, under Proposition 13, the property tax has grown steadily and is the most reliable revenue source. That would all change if “fixes” applied to Proposition 13, like a split roll to collect more property taxes on commercial property, were put into effect.
No Time for the Usual Budget Games
Well, that didn’t take long.
On Tuesday, Gov. Arnold Schwarzenegger vowed that he wouldn’t take a dollar from education, health care, public safety or state parks “without first cutting the Waste Management Board.”
On Wednesday, Democrats on a joint legislative budget committee instead suggested boosting the waste board’s clout by giving it authority over a couple of environmental agencies that now report directly to the governor.
Just like that, the old Sacramento game of tit-for-tat, “if you cut my program, I’ll cut yours,” is back in operation. While it can be a good time for legislators – and governors – looking to score political points, it doesn’t solve California’s money problems very quickly, as the past few years of overdue budgets and unending partisan squabbling have shown.
Populism 2.0
About 100 years ago, a populist Republican Governor here in California believed that the stranglehold of special interests in the capitol could be broken if the people had more say in their government.
Hiram Johnson knew that his belief in accountability and transparency were the populist key to seeing more government. Indeed, he knew it would lead to a state liberated from the grips of powerful political groups and parties in Sacramento.
Johnson’s legacy was a state that had the most direct democratic system in the country. His reforms included the initiative, recall and referendum processes. Against vested interests across the state, he stood with the people, and ultimately against his party, when it became clear that it had strayed from its promise to serve the people of California. To illustrate the gravity of Johnson’s opposition in these efforts, the reforms he instituted broke the back of the railroads that literally owned and ran the state government.