Californians Started the Tax Revolt 34 Years Ago. Will They End it Today?

California Gov. Jerry Brown, now and then<a href="http://ag.ca.gov/images/ag_brown.jpg">State of California</a>; <a href="http://en.wikipedia.org/wiki/File:JerryBrownInauguration1975.jpg">Sacramento Bee</a>

Fight disinformation: Sign up for the free Mother Jones Daily newsletter and follow the news that matters.

The great American tax revolt got its start in June 1978, when California voters passed Proposition 13, a ballot initiative that cut and capped property taxes and required a two-thirds vote to pass any future tax increases. Jerry Brown was governor back then, and initially he opposed Prop. 13. Once it passed, though, he became such a fervent apostle that four months later Howard Jarvis, the father of Prop. 13, was cutting campaign commercials for Brown’s reelection bid. Today, at age 74, Brown is no longer the Gov. Moonbeam that Garry Trudeau famously dubbed him back in the ’70s, but he is governor again. And guess what? In a Groundhog Day kind of way, Proposition 13 is back on the ballot again too.

Naturally, there’s a backstory here. The Golden State has had a rocky past decade, starting with over-optimistic spending during the dotcom boom; red ink as far as the eye could see during the dotcom bust; and finally, in 2003, a special election that propelled movie star Arnold Schwarzenegger into the governor’s mansion. Schwarzenegger won largely because of a second, mini-tax revolt, this time over an increase in the vehicle license fee, which he promised to roll back. He kept his promise, immediately plunging California back into deficit, and then passed a revenue bond that papered things over for a couple of years but, in the long run, just made California’s problems worse.

Still, for a couple of years toward the end of Schwarzenegger’s second term, the state budget started looking a little better. But it was just a mirage. California’s structural deficits had never really been addressed, and when the Great Recession hit in 2008 things went pear shaped fast. And while Republicans may be a fading force in California, they maintain just enough members in the Legislature to prevent any tax increases—thanks to Prop. 13’s two-thirds requirement—something which has left Sacramento with no choice but to slash the budget brutally. In current dollars, California spent $3,100 per resident out of its general fund in 2007. Today that’s down to $2,400. (Raw numbers here.)

Because of this, schools have suffered, universities have suffered, and, of course, the poor have suffered. Further cuts this year would cause even more devastation, so Brown is resorting, once again, to California’s initiative process to fix things. Ironically, though, this time he’s campaigning hard for Proposition 30, a measure that would temporarily increase income taxes on the rich and sales taxes on everyone. The money would mostly be earmarked for K-12 schools and community colleges. If it doesn’t pass, automatic triggers in the 2013 budget will take effect, slashing $6 billion in planned spending.

So here’s the question: Will California voters, who so famously started the tax revolt 34 years ago, agree to Brown’s plan to bypass the two-thirds requirement they themselves put in place and raise their own taxes? If Prop. 30 passes, it would symbolically mark an end to the tax revolt, and for this reason it’s attracted more than just the usual opposition from within California. It’s also attracted huge amounts of opposition funding from outside the state. Huge and mysterious: An Arizona outfit called Americans for Responsible Leadership has committed $11 million to the fight against Prop. 30 (as well as the fight for Prop. 32, a union-busting measure), but has steadfastly refused to disclose where the money came from. Under a court order, they finally revealed the source of the money on Monday, but they still had the last laugh: The source they revealed was just another mysterious organization, and it’s too late to force that organization to reveal the real source of the money. Andy Kroll has the whole story here.

So will Prop. 30 pass? It’s on a knife edge. The most recent Field Poll, the gold standard in California polling, shows that all that outside money has had an effect. Support has dropped substantially over the past month, and now stands at 48 percent to 38 percent. A separate poll from PPP put Prop. 30’s support at 48 percent to 44 percent. That may seem like a comfortable lead, but conventional wisdom says that once an initiative drops below 50 percent, it’s in trouble. The undecided voters almost always end up voting No in large numbers.

So that’s where we stand. Today, at the behest of the same governor who came to personify the start of the tax revolt in America, Californians will decide whether they’ve had enough. After watching school funding and basic service funding atrophy for over a decade, is it finally time to call off the tax revolt? In a few hours, we’ll find out.

WE'LL BE BLUNT

It is astonishingly hard keeping a newsroom afloat these days, and we need to raise $253,000 in online donations quickly, by October 7.

The short of it: Last year, we had to cut $1 million from our budget so we could have any chance of breaking even by the time our fiscal year ended in June. And despite a huge rally from so many of you leading up to the deadline, we still came up a bit short on the whole. We can’t let that happen again. We have no wiggle room to begin with, and now we have a hole to dig out of.

Readers also told us to just give it to you straight when we need to ask for your support, and seeing how matter-of-factly explaining our inner workings, our challenges and finances, can bring more of you in has been a real silver lining. So our online membership lead, Brian, lays it all out for you in his personal, insider account (that literally puts his skin in the game!) of how urgent things are right now.

The upshot: Being able to rally $253,000 in donations over these next few weeks is vitally important simply because it is the number that keeps us right on track, helping make sure we don't end up with a bigger gap than can be filled again, helping us avoid any significant (and knowable) cash-flow crunches for now. We used to be more nonchalant about coming up short this time of year, thinking we can make it by the time June rolls around. Not anymore.

Because the in-depth journalism on underreported beats and unique perspectives on the daily news you turn to Mother Jones for is only possible because readers fund us. Corporations and powerful people with deep pockets will never sustain the type of journalism we exist to do. The only investors who won’t let independent, investigative journalism down are the people who actually care about its future—you.

And we need readers to show up for us big time—again.

Getting just 10 percent of the people who care enough about our work to be reading this blurb to part with a few bucks would be utterly transformative for us, and that's very much what we need to keep charging hard in this financially uncertain, high-stakes year.

If you can right now, please support the journalism you get from Mother Jones with a donation at whatever amount works for you. And please do it now, before you move on to whatever you're about to do next and think maybe you'll get to it later, because every gift matters and we really need to see a strong response if we're going to raise the $253,000 we need in less than three weeks.

payment methods

WE'LL BE BLUNT

It is astonishingly hard keeping a newsroom afloat these days, and we need to raise $253,000 in online donations quickly, by October 7.

The short of it: Last year, we had to cut $1 million from our budget so we could have any chance of breaking even by the time our fiscal year ended in June. And despite a huge rally from so many of you leading up to the deadline, we still came up a bit short on the whole. We can’t let that happen again. We have no wiggle room to begin with, and now we have a hole to dig out of.

Readers also told us to just give it to you straight when we need to ask for your support, and seeing how matter-of-factly explaining our inner workings, our challenges and finances, can bring more of you in has been a real silver lining. So our online membership lead, Brian, lays it all out for you in his personal, insider account (that literally puts his skin in the game!) of how urgent things are right now.

The upshot: Being able to rally $253,000 in donations over these next few weeks is vitally important simply because it is the number that keeps us right on track, helping make sure we don't end up with a bigger gap than can be filled again, helping us avoid any significant (and knowable) cash-flow crunches for now. We used to be more nonchalant about coming up short this time of year, thinking we can make it by the time June rolls around. Not anymore.

Because the in-depth journalism on underreported beats and unique perspectives on the daily news you turn to Mother Jones for is only possible because readers fund us. Corporations and powerful people with deep pockets will never sustain the type of journalism we exist to do. The only investors who won’t let independent, investigative journalism down are the people who actually care about its future—you.

And we need readers to show up for us big time—again.

Getting just 10 percent of the people who care enough about our work to be reading this blurb to part with a few bucks would be utterly transformative for us, and that's very much what we need to keep charging hard in this financially uncertain, high-stakes year.

If you can right now, please support the journalism you get from Mother Jones with a donation at whatever amount works for you. And please do it now, before you move on to whatever you're about to do next and think maybe you'll get to it later, because every gift matters and we really need to see a strong response if we're going to raise the $253,000 we need in less than three weeks.

payment methods

We Recommend

Latest

Sign up for our free newsletter

Subscribe to the Mother Jones Daily to have our top stories delivered directly to your inbox.

Get our award-winning magazine

Save big on a full year of investigations, ideas, and insights.

Subscribe

Support our journalism

Help Mother Jones' reporters dig deep with a tax-deductible donation.

Donate