California's problems

Everyone should be shocked at the sheer size of California’s budget problems but I do not think there is enough info out there that explains the institutional reason why (beyond it having a government).

Here is a list of issues that people in the establishment have brought up to point to the problem and due to the nature of the people finger pointing, it raises my eyebrow:

1) Term Limits: Nope. Every state that has implemented term limits has increased tax cuts and reduced pork barrel spending as well as cut the amount of bills that are passed. This is not because the politicians are better people because of term limits but because it creates chaos in creating legislative coalitions. The different politicians are not around long enough to return favors on the same time frame as in non term limited chambers. I am aware of the theoretical arguments on this site against term limits but long term politicians need to eternally pander for short term goals whereas Monarchs and short term legislators do not.

Term Limited politicians do not have the super short time frame some people think they have since they are not constantly trying to be re-elected to the same postion. That turnover limits the kind of incumbent seniority power that legislators have such as here in 90% re-election rate Massachusetts. Massachusetts alone if not the Federal government cause me to trust term limits legislature FAR more from what I can see. Are they perfect? Not at all.

2) Two thirds to raise taxes: Definitely not. I do not think I have to go any further here. This state constitutional amendment goes back to 1978.

3) Two thirds to create a budget: This has the tendency to reduce overall spending since the majority doing the looting has to consult with the minority that may be getting looted or simply not like that kind of looting. This state constitutional amendment goes back to 1933 to fight high spending.

All three of those things cannot possibly be the cause and here is why. California is a SUPER DEMOCRACY. They only need something like 50% of the vote on a proposition to amend their state constitution. Due to that amendment process everything from education, transportation, mental health, and prisons are beyoned the the control of both legislative chambers and the governor.

The Californian Constitution has mandatory spending for over 60% of its annual budget. If you include Federal mandates on spending it shoots up to 80-85%. That means the legislature only has control of 15 -20% of the state spending budget.

As for Term limits they were added onto the state constitution after several of these mandatory spending amendments were already added. On top of that they have been in place as more and more of these mandatory spending amendments were added.

Check this article out:

http://www.sanjosemagazine.com/main/?p=330

Thanks for sharing.

According to this such problems are not unique to California. California is just the biggest timebomb.