What would YOU do with California?

[Captain_Amazing]

First, December, as a footnote, California does have a state property tax.

More generally, though, to balance the budget, CA is going to have to either lower spending or raise taxes (depending on whether you think taxes are too low or spending is too high) , and it’s really hard to do either in CA. Here’s a Washington Post article outlining the problem.

http://www.washingtonpost.com/wp-dyn/articles/A56185-2003Aug13.html

Some highlights:

California’s 1978 taxpayer revolt resulted in the passage of Proposition 13, which lowered property taxes by 60 percent and strictly limited property tax increases. That, in turn, left the state dependent on volatile taxes – particularly income taxes – levied by Sacramento instead of local governments. But Proposition 13 also mandated that any tax increase be approved by a supermajority.

Since then, the people have kept that legislature spending. In 1988, Proposition 98 hamstrung any efforts to cut education spending by mandating that funding for education from kindergarten through community college at least equal the previous year’s level, plus increases for inflation and population growth.

Last November, as the state’s budget problems pushed the deficit over $15 billion, voters reelected Davis and approved four measures creating a trust fund for emergency homeless shelters, low-income seniors and the mentally ill; funding a comprehensive overhaul of education facilities; financing a new wave of “clean water” bonds; and increasing spending on after-school programs.
. . .
In one day Californians had locked in additional financial obligations totaling $40 billion, according to Brian P. Janiskee, a political scientist at California State University at San Bernardino.
[/quote]

Voter-mandated initiatives, along with the federal partnerships funding Medicaid and welfare, now swallow 60 to 80 percent of the state budget, said John Ellwood, a public policy professor at the University of California at Berkeley. Meanwhile, a recent economic study concluded that the supermajority requirement to pass tax increases has left states like California with 8 percent less tax revenue than they would have if a simple majority could raise taxes.

[DrDeth]

Actaully, Prop 13 could be amended, to not exempt Commercial property. Note that all Prop 13 does is fix prop tax at a very reasonable 1%, but then freezes the assessed value at when you bought it.

Since the fact the housing market in your area goes crazy and triples to selling price of your home in 10 years does not benefit you at all…until you sell it- that part seems reasonable to me.

Hey, if I buy a $400,000 home on my current budget, and figure out that I can make the payments & taxes- why should my taxes double just because the house across the street just sold for $800000?

[Airman_Doors_USAF]

At this point the only thing that could help California would be one himdinger of an earthquake so they could get a boatload of FEMA funds. Otherwise, they’re screwed for the forseeable future, and maybe longer.

[BobT]

*Originally posted by december *
**Really? One example the other was was a ballot proposition eliminating most benfits for illegal immigrants. It would have reduced state spending, but a judge undemocratically overruled most of that proposition. These limitations were the citizens’ way of deciding that taxes are already high enough, and they were unwilling to pay for additional government services. California taxes are very high in comparison to most other states. I think it’s the state spending that’s out of line. **

Overruling Proposition 187 may sound undemocratic to some, but the California Supreme Court was just following the precedent established by the Federal Government when Texas tried to pass similar legislation.

Just because the people approve a measure doesn’t mean it’s right. In 1964 Californians approved a measure that REVERSED the ending of restrictions on housing by race. That flew in the face of Federal civil rights law. The courts tossed out that proposition.

Californians are always a bit peculiar in what they want. The state overwhelmingly supported a ban on gay marriage, but also supports the rights of gay couples to receive medical benefits and other types of insurance.

[barton]

After reading all of this utter mess, I have to favor Lex Luthor’s now 25-year-old plan:

“Bye bye California. Hello new west coast. My west coast. Costa Del Lex. Luthorville. Marina del Lex…”

[rjung]

It’s all Daryl Issa’s fault!