Before Californians rush off and try to fix what’s wrong with the state’s governance by calling for a new constitution, they ought to consider the simple solution of getting a bigger bang for the taxpayers’ dollar.
William Voegeli, a contributing editor to The Claremont Review of Books and a visiting scholar at Claremont McKenna College’s Salvatori Center, argues that California government has shortchanged its citizens by not providing good services for the amount of tax dollars the citizens provide.
In a lengthy comparison of government efficiency between the states of California and Texas in a City Journal article, Voegeli shows California’s government model fails to deliver for its citizens and overcharges dearly for that failure. Quoting the New Geography’s (and occasional Fox and Hounds contributor) Joel Kotkin, to make the point: “Twenty years ago, you could go to Texas, where they had very low taxes, and you would see the difference between there and California. Today, you go to Texas, the roads are no worse, the public schools are not great but are better than or equal to ours, and their universities are good.”
Voegeli says one kind of election result which indicates voters preferences is when citizens vote with their feet. They move to a locale in which they believe they are getting good return from their tax dollars. California is losing this election. “The biggest factor accounting for California’s loss of population to the other 49 states, bond ratings that would embarrass Chrysler or GM, and state politics contentious and feckless enough to shame a banana republic, has to be its public sector’s diminishing willingness and capacity to fulfill its promises to taxpayers,” he writes.
If states are like clubs offering different benefits at different costs then “Club California purchase benefits that, increasingly, are enjoyed by the staff (public employees) instead of the members (taxpayers).”
Business interests pay double for ineffective government spending. Despite paying high taxes, some businesses must then put out more money to educate workers who come out of the school system without basic writing and math skills.
Voegeli doesn’t dismiss the high-benefit, high-tax model of government. His argument with California is that the high taxes don’t purchase the high benefits, superior public goods.
Until California government delivers on its promise of top benefits for its high tax dollars – in other words, until California delivers more efficient government – it can expect citizens will continue to vote with their feet.