I think they're in a terrible mess unless they make fundamental changes. Getting rid of Prop 13 would certainly seem to be a reasonable first step.

http://en.wikipedia....position_13_(1978)

Even if, for example, California declared bankruptcy, they'd still have that axe hanging over them, wouldn't they? How could a bankruptcy court force something that was explicitly against the CA Constitution?

30 years for a FL isn't too bad, but ultimately TANSTAAFL.

:-(

Cheers,
Scott.
(Who must, of course, admit he hasn't studied the CA situation in detail.)

California should be a representative democracy like the rest of the US. That means, people should allow representatives to make judgments as to what's best as circumstances change. As things stand, CA can't build up a surplus when times are good, and they get hammered when times go bad.

As is pointed out in the Wikipedia article above, restricting tax rates the way California does has bad effects on the housing market and other impacts. Apparently CA reassesses properties when it's sold, but not always. E.g. http://www.co.san-jo.../assessor/faq.htm

Q: If I give property to my children, will it be reassessed?

A: Legislation was passed in 1986 excluding from reassessment transfers between parents and children of the principal residence and $1 million assessed value of other property.

That's a huge incentive to keep a property in the family, or make it appear that's the case.

Around here, property is reassessed every year (whether it's sold or not), and the County Board has the power to change the property tax rate every year to adjust the amount of money they take in. There are adjustments for the elderly and those who are disabled, if they meet income requirements: http://www.fairfaxco...taxrelief_faq.htm CA could do something similar to protect their citizens without distorting the rest of the society and handcuffing government.

I have no qualms with getting rid of 3-strikes and ending the private prison system, but that won't solve California's immediate problems. It's really bad out there:

http://www.mercuryne...w.mercurynews.com

The same report, using state Department of Finance figures, predicts California's total property tax revenue will "fall by over 10 percent before finding a bottom."

The plunge grants some short-term relief for property owners who will get a break on this year's tax bill. But the lowered tax rates shrink funding for public services that all Californians rely upon, from health and welfare programs to police and fire protection.

Property taxes are counties' largest single source of unrestricted funding for the social safety net; in Santa Clara County, they comprise more than 30 percent of the general fund, or $645 million this year. Property taxes provide critical income for cities as well.

And a decline in property taxes means state officials must dig deeper from other sources to provide the funding levels guaranteed for education — which, given Sacramento's unprecedented budget morass, leaves most schools in even greater jeopardy. Schools already are faced with teacher layoffs and larger class sizes, in addition to library closings and the elimination of electives.

Like it or not, just about everywhere in the US, property taxes are essential for funding schools. It's madness to require a guaranteed level of support for schools (or anything else) and yet restrict the way that that money can be raised.

Cheers,
Scott.

I was too terse.

I was trying to get across my belief that if government is too tightly constrained in how it can raise revenue, as I believe it's clearly the case in California, then bad things happen when the economy changes (and the economy is always changing). I agree that local governments should be willing to cut positions, reduce wages, etc., when things go bad; but they also need to be able to raise revenue - all of the tools have to be available. Ideology run amok is bad because the real world isn't ideal.

Oh, and we pay a lot more than property taxes around here. :-) http://www.fairfaxco...itizens_guide.pdf (24 page .pdf) - page 18:

Total Revenue for FY09: $3.22 B

Sources:
61.6% Real Estate Taxes
15.5% Personal Property Taxes (Annual Car Tax)
15.0% Local Taxes (Sales Tax)
2.5% Revenue from VA
1.9% Charges for Services (e.g. Clerk of Courts)
Etc.

53% of that revenue goes to the schools.

Cheers,
Scott.

I think your family's getting more benefit in that regard. ;-)

The schools around here vary, but in general they're pretty good. They're one of the reasons why people want to live here.

Cheers,
Scott.