Tag: Prop 13

Categories
initiative, referendum, and recall

Winners and Losers

California’s initiative process gets blamed for every political problem the state confronts … that is, by many legislators and political insiders. 

Two measures receive the bulk of the ire: Proposition 13 and Proposition 98. 

Liberals bemoan Prop 13’s requirement of a two-​thirds legislative vote to raise taxes, preventing state government from getting “the proper revenues.” They are welcome to their opinion.

But 33 years ago, Californians passed the measure 65 to 35 percent. Last week, a Field Poll showed it just as popular today. Additionally, the pollsters reported, “In each of four previous Field Poll surveys conducted since its passage, Prop. 13 has been backed by Californians by double-​digit margins.”

Conservatives oppose Prop 98, which passed very narrowly in 1988. It creates a floor for K‑12 education spending of roughly 40 percent of the state budget. 

That’s why some charge that initiatives dictate too much of the budget. But, were legislators otherwise planning to zero-​out public school funding? I doubt it. Spending was around 40 percent before Prop 98.

One other thing: Prop 98 incorporated a provision allowing the legislature to suspend the 40 percent mandate. The legislature has done so twice.

I would have voted against it, but unless Californians who oppose 98 can put a repeal onto the ballot and convince the majority of their fellow voters to agree, well, they’ll have to live with it.

At least, until the next election. 

This is Common Sense. I’m Paul Jacob.

Categories
initiative, referendum, and recall tax policy too much government

Prop 13 Declared Innocent

You hear it all the time: California’s in such a mess “because of Proposition 13.”

You probably wonder how that initiative, passed way back in the ‘70s, could be so key.

Well, it was the first of a long line of voter-​instigated tax limitation measures, and it made politicians ache with frustration. Politicians LIKE spending money; Proposition 13 limited, somewhat, their greedy quest for ever more money to spend.

But did it really unbalance California fiscal policy?

Chris Reed, writing in the San Diego Union-​Tribune, explains how nutty this charge really is:

[S]ince shortly after Prop. 13’s adoption, property tax revenue increased by 579 percent. That is not a typo. It went up 579 percent.

During the same span, population went from 24 million to 38 million — an increase of 58 percent.

Reed checked his numbers against the inflation rate, and found that “property tax revenue has increased by more than triple the combined rate of inflation and population growth.”

He did a little more checking and learned that property tax revenues went up faster than any other major revenue source!

So Prop 13 simply cannot be the reason for California’s impending bankruptcy. Though the measure limited tax rate growth, and helped homeowners, it did not unbalance the budgets. 

Humungous increases in spending did. Politicians need look no further than their own projects.

This is Common Sense. I’m Paul Jacob.