TIME: California's Fiscal Crisis: The Legacy of Proposition 13

[choie]

You mean Sir Ronald of Reagan was wrong??????


http://news.yahoo.com/s/time/08599190493800
:banghead:

[hobbit709]

1. You mean that right hand of god St. Ronnie?

[The_Casual_Observer]

2. Arnold was a trojan horse.

[FreakinDJ]

3. Calif has "Spending for Spending"

You would not beleive the number of well funded "pet projects" sucking dry the tax payer coffers

[Turbineguy]

4. Prop 13

would not have come about if localities had adjusted their tax rates to compensate for higher assessments. Instead they seemed to think this was free money to spend. There were a lot of abuses in the system. The good public policies (education and the like) ran off the rails. The lesson is that people are willing to pay for good programs but not lose their house for them.

But this direct democracy through cut-off-your-nose-to-spite-your-face propositions and referendums is flawed too. That's why you elect a government. To do what needs to be done.

[ProgressiveProfessor]

5. The article misses a key point...that no one in CA believes the government or the pols

The pols have been crying about it being the end of days since Prop 13 passed. No catastrophe has happened. Why should the voters believe them now since since they think they have been crying wolf for all these years? Government is not well thought of in CA and its not getting any better. I expect there will be a serious restructure in many areas.

CALPERS and its siblings are requiring more money as are the existing contracts. I expect to see public employees, especially teachers take hits including retirees. The nature of the zero sum game is that it will turn active members against retirees. They will also sellout the future members and accept defined contribution for new hires in an attempt to preserve what they already have.

There will be a significant lowering of government services, which after an initial outcry will be accepted as normal. Furloughs and wage freezes will be the norm in addition to no new hiring.

More and more medical facilities will refuse MediCal patients since reduced payments will not cover costs. Public hospitals will be in even more dire straights

Public college education costs will rise sharply.

Road maintenance is going to drop heavily. It will hit rural counties the most.

Energy costs will rise, ecological protections will drop.

Increased taxation where possible will continue to depress the housing market.


Its not a pretty picture, but its where I see California and later the nation is headed.

[Bluenorthwest]

6. When 13 was on the ballot

my Dad said, son, if this passes it means that when you are my age, the State will be broke, houses will cost so much regular people can not afford to buy them, and the same class of slumlords will profit from the rentals in poor communities, never allowing for people to buy those homes.
Now I am the age he was then. He was 100% accurate. I left CA about 4 years ago to be someplace safer for this stage of the game. That is why my life is pretty alright. Thanks Dad!

[ProgressiveProfessor]

7. I am about to retire (again) and am really torn about leaving CA for good

I love my unique home it is quite literally irreplaceable, yet my daughters and grand kids are nowhere near here. I'll give it a few more years and then see where things are.