Managing California’s Fiscal Roller Coaster

When Proposition 13 passed in 1978, many commentators predicted disaster for California’s state and local finances. Now, 30 years later, California is experiencing severe fiscal instability and a round of budget crises that has been worse than other states. It would be wrong to blame Proposition 13 for all of California’s financial woes. Nevertheless, Proposition 13 is both an important component and a powerful symbol of California’s flawed fiscal constitution.…