Fighting Forward in California: What about Proposition 13?

[Cbgord@aol.com]

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_Fighting Forward: What about Prop 13?_
(http://realschoolreform.net/2009/08/03/brainstorming-a-fight-forward-what-about-prop-13/)
Posted August 3rd, 2009 by Craig Gordon  |

California’s  state government has passed three disastrous budgets in less
than a year: last  week’s pillage followed agreements in February and last
September that similarly  robbed billions from social programs. Those earlier
packages also included gifts  to corporations in the form of giant new tax
loopholes. So how can we stop this  recurring nightmare? (I’m sure the
question applies across the U.S. these  days.)  In my last (too-long) post, I put
out some general ideas for moving  forward. Today’s post will get into more
detail about one major issue we need to  confront: Proposition 13. In the
next post I’ll look at other needed progressive  tax reforms, and in the
following post, give some thoughts on starting to build  a fight back.
Confronting  Proposition 13
One  of the most obvious reasons for California’s predicament is
Proposition 13, the  property tax-gutting measure that has devastated public schools
and other  services since it passed in 1979.  The measure was sold to voters
as  tax-relief for homeowners, but the big winners have been big businesses.
Since  Prop 13’s passage_ the share of taxes paid by  single-family
residences has sharply risen, as the portion contributed by  commercial and
industrial properties has plummeted_ (http://caltaxreform.org/?p=154) .  That is
because  corporations avoid property reassessment for much longer periods than
most  homeowners do, by holding onto property longer or using legal
loopholes to avoid  reassessments even when they sell.
Before  Prop 13 businesses contributed the lion’s share of property tax
revenue; today  single-family residences do. _California’s Green Party  says_
(http://www.cagreens.org/press/pr051025.htm)  that businesses statewide  used
to shoulder 2/3 of property tax load to 1/3 for homeowners and that this
proportion has virtually flipped.  The county-specific percentages I’ve
found for _Los Angeles_ (http://caltaxreform.org/?p=154)  and _San Francisco_
(http://www.philting.com/close_the_loophole.php)  show a similar, if slightly
less  spectacular, trend.
So  will the California Teachers Association (CTA) finally take up an
effort to  repeal Proposition 13? For years CTA leadership has focused narrowly
on  upholding Proposition 98’s funding guarantees for K-12.  So _CTA
supported this  “compromise budget”_
(http://cta.org/media/newsroom/releases/20090721_1.htm)  because it  technically preserves Prop 98  “restores much needed
funds to education  once the economy improves.” (Never mind the _history  of
the state government breaking similar promises_
(http://www.cta.org/media/publications/educator/archives/2005/200504_cal_ed_action01.htm)  in recent
years to “pay it back.”)
Meanwhile  CTA has limited its public criticism of Prop 13 to the part of
that law  requiring a 2/3 supermajority in each legislative body to pass
revenue-related  bills. True, that undemocratic provision ensures gridlock and
favors fiscal  conservatism and must change.  But the larger problem is Prop
13’s huge  corporate loopholes. Split roll taxation—treating corporate and
industrial  properties differently than individual homes—would provide a
remedy.
CTA  has long avoided campaigning for split roll, claiming that the public
won’t  support it. While a _split  roll initiative failed in 1992_
(http://www.latimes.com/business/la-fi-hiltzik13-2009jul13,0,6713365.column) , much
has changed since then. A _Field  Research survey last year_
(http://www.field.com/fieldpollonline/subscribers/COI-08-June-Prop-13-Tax-Matters.pdf)
found that the public narrowly supports  a split roll that raises business
taxes, and that an overwhelming majority  favors an approach that lowers
homeowners’ taxes.  And maybe the latest  budgetary kick in the face is getting
through to CTA’s top leaders, too.   More on that later.


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