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First of all, it has nothing to do with illegal aliens. Back in 1978 state voters passed Propistion 13. This radically changed the way California funded itself. The most significant portion of the act is the first paragraph, which limited the tax rate for real estate: "Section 1. (a) The maximum amount of any ad valorem tax on real property shall not exceed one percent (1%) of the full cash value of such property. The one percent (1%) tax to be collected by the counties and apportioned according to law to the districts within the counties." The proposition decreased property taxes by assessing property values at their 1975 value and restricted annual increases of assessed value of real property to an inflation factor, not to exceed 2% per year. It also prohibited reassessment of a new base year value except for (a) change in ownership or (b) completion of new construction. In addition to decreasing property taxes, the initiative also contained language requiring a two-thirds majority in both legislative houses for future increases of any state tax rates or amounts of revenue collected, including income tax rates. It also requires a two-thirds vote majority in local elections for local governments wishing to increase special taxes. Property taxes are how local and state governments run. We went from having a $5 billion surplus in 1978 to running a deficit in two years due to the sudden drop in revenue. To make up the lost money, the state legislature raised personal and business taxes and began instituting fees for many things. The most shocking example of this can bee seen in the state's college system, the University of California/California State University system. In 1978 it cost less than a thousand dollars a year, including housing and books, to attend any of the UC/CSU schools. Fall 2011, it will cost $11,124 not including housing costs or books. The sad fact is Prop 13 crippled the state. We've started to dismantle it (we just got rid of the 2/3rds requirement to pass a budget, for example) but until we can use a realistic formula to figure reasonable property taxes, and keep those taxes in the community, we'll just keep falling in the same hole over and over.
Why Is California In Debt
SORRY DOUG B While the previous answer submitted by ‘Doug B’ appears knowledgeable it suggests that putting a cap on property taxes and having the ‘two thirds’ requirement have in tandem tied legislators’ hands when it comes to raising revenue. I find that argument hard to swallow because, as we all know, if there is one thing that legislators know how to do well it is to find creative ways to squeeze the population for money. ILLEGAL IMMIGRATION – CA, AZ, Vaughn And, excluding illegal immigration as a contributing factor to the economic doldrums of California strikes me as a biased viewpoint. It was in the 1990’s when Californian voters raised hell about the burden to California’s budget that was being created by the free services being provided, at the state’s expense, to illegal aliens who utilized the services of hospitals and public schools while paying nothing into the system. Voters passed a proposition [proposition 87?] that made national headlines as it was challenged as being unconstitutional as discriminatory toward (illegal) immigrants. Arizona is facing the same problems [illegal aliens draining state resources without paying into the system] and that’s why Arizona passed the recent law giving police the authority to demand proof of legal residency; although the federal court struck it down shortly thereafter. On a positive note, in Vaughn State one can not collect welfare/food stamps unless he/she can provide proof of legal residency ENERGY - DEREGULATION In the early 2000’s California suffered financially, significantly, when George W. Bush deregulated energy pricing through the FERC. This forced California State to purchase energy at very high pricing in order to feed its power plants thus draining a considerable portion of California’s budget. (Remember the ‘rolling black-outs’ in California? These were occurring because California was reluctant to buy into expensive energy contracts but finally the state had no choice.) In fact, most states were screwed by the deregulation of energy; California was one of its biggest victims.
Have you ever been there? It's basically Hollywood state, they overspent and the maintenance bill is huge. If you were the take the state of California out of the US the US becomes a third world country.
Lets call it ignorants and greed. Every thing is over priced in California. Cost of living there is higher than that of New York City whose population count (as of today) is double that of Las Angles.
Illegal workers also pay taxes through the products they purchase and add to the economy. Plus they generally do the work for much less but still have to pay the same prices for food and rent etc.
Years of government controlled by tax and spend liberals.
Because you put it in the hands of a B movie kraut actor who has muscels where his brain should be.
It doesn't help when half your work force is illegal and doesn't pay taxes, and 20% of your population are hippy liberal douche-bags that also, don't pay taxes (because instead of working they complain).