The Intelligence Pool
State of Dysfunction: California Lurches Closer to Fiscal Anarchy
Part Seven
Is There Any Hope?
There is. Understanding California’s structural problems does not require rocket science or advanced math. Anyone who has read this far in this essay has probably already arrived at as deep an understanding as is necessary to address these issues. The solutions to California’s dysfunction state government are clear.
Summary: This page suggests six steps that can be taken to rectify California's problems.
First. Abolish the Supermajority Requirement
California should abolish the two thirds supermajority requirement for budget and tax approvals. In the words of George Skelton, a columnist for the L.A. Times:
…The two thirds majority requirement for passage of budgets and tax increases… makes California practically ungovernable as it becomes more complex, diverse, and polarized. Let the Majority party govern and pay the price if it screws up!
In a democracy, many decisions can only be made by allowing the majority to rule. If we required a 2/3rds supermajority of electoral votes to select a President, for example, we would have only had 21 Presidents, not 44. The White House would have been vacant most of the time. It would be vacant now.
Let the majority govern, and then hold them accountable for their decisions. This is the way American democracy has traditionally functioned , and it is the only way California can function.
Second. Limit State Spending to Rate of GDP Growth
California should limit the growth of its state budget expenditures to the rate of growth of the economy. This provision will be much easier said than done, of course, but a bipartisan commitment to ensuring state spending grows slightly slower than GDP might not be impossible. Some sort of formalized public “compact” between the two political parties might be as effective as an actual law (which could, of course, be changed by the legislature whenever it pleased.)
If all else failed, a state constitutional amendment might be the only way to implement this idea. In order to be enforceable by courts, however, an amendment it would need to be extremely simple, and therefore inflexible. A public compact would be preferable.
Third. Modify Proposition 13
California should significantly modify Proposition 13. Prop 13 punishes new home buyers. A strong case can be made that by taxing new home buyers at a much higher rate than existing home owners, it actually lowers prices and restricts real estate appreciation. It deters people from “buying up,” thereby restricting the number of homes available for sale. It punishes young families just getting started and transfers the wealth of these younger families to older couples who have owned their homes much longer, many of whom no longer have children. This actually serves to discourage child-rearing, something no tax ought to do!
Fourth. Fund Counties and School Districts With Local Taxes
California should once again fund local entities – counties and school districts – with taxes generated in those communities. If all homes were assessed at something closer to 80% of the actual market values, California could have much lower property tax rates than most other states – because its real estate is so expensive – and could still pay for counties and school districts with locally generated funds. This would insulate the counties and school districts from any budget crisis in Sacramento.
Fifth. Implement Proposition 11 (2008) -- Stop Gerrymandering
California should vigorously implement Proposition 11, an initiative passed by a narrow majority in November 2008. Prop 11 removes the redistricting process from the control of the state legislature. The goal of redistricting should be to produce as many competitive districts as possible.
This will increase competition in California politics, and make legislators responsive to the great silent majority of moderates who have been disenfranchised by the two dominant parties in most every district. A state with 25 competitive Senate districts and 30 competitive Assembly districts will produce a less partisan legislature, because the voters who will matter the most in the general election will be the swing voters – the political moderates who might vote for either party depending on who they think is best addressing the issues at that moment.
And it should make California’s elections more interesting! Perhaps we would have actual political debate going on in October and November instead of the black hole of nothingness we now have, caused by too many candidates who have already won and are better off saying nothing. Candidates should have to compete for our votes in the general election. That’s what democracy is all about.
Sixth. Abolish or Modify Term Limits
California should abolish or significantly modify term limits. With enough truly competitive districts, winnable by candidates of either party, term limits would not be needed. If term limits are still judged to be a good idea by a majority of voters, then they should be loosened so that Senators can serve at least 12 years and Assemblypersons at least 10. We don’t want people serving in these positions for life, but we also don’t want a bunch of inexperienced rubes running the state government in Sacramento.
Legalize Pot?
Many people have also suggested that California should legalize and tax cannabis. News stories have suggest cannabis is the largest single cash crop grown in California, larger in dollar value than tomatoes or apricots or any of the dozens of other fruits and vegetables grown in the state. This assertion is unprovable, but there may be some truth to it.
Would the Feds permit this? No one knows. While legalizing cannabis might be a good idea for a variety of other reasons – it would reduce expenditures on law enforcement, criminal prosecution, and prisons, and it would help to put the drug cartels in Mexico out of business – I suspect it would have a fairly small fiscal impact, in the range of a few billion dollars. Still, squeezing a few billion dollars out of all that pot smoke wafting through the air would be a major success.
Californians deserve a functional state government. The current situation must result in fundamental reform before California collapses into fiscal anarchy and becomes a laughingstock around the world. The state has procrastinated reform far too long already.
Robert Roy Pool is a screenwriter, an essayist, the founder of IntelligencePool.com, and the father of three Californians. He lives in West L.A.