Friday, April 24, 2009

Californication

My poor old birth state - California - is a mess, and this Associated Press article on Breitbart.com describes some of the things being considered to fix the mess. A constitutional convention is proposed to fix problems in the state constitution.

The big issue is that a current constitutional provision requiring 2/3 majority to pass tax increases plus the famous Prop. 13, taken together, have made it impossible to raise taxes much at either the state or local levels. The result is a populous state with big problems, and constrained state and county budgets.

Continuous Democratic majorities in both houses of the state legislature have been unable, for ideological reasons, to cut state spending to the level of state income. They have engaged in cost-shedding by moving certain responsibilities to the county level, without providing supporting revenue.

Believe it or not, I think the solution is constitutional change enabling higher taxes! I believe California is overpopulated; one eighth of U.S. population lives there. Higher taxes will drive jobs, and therefore working-age people and their children, out of California. Fewer people will lower the cost of operating the state and its counties.

Equilibrium will be reached at some point of smaller population and lower total costs. If CA became largely a residence for retirees and the people who support their needs, its operating costs would be much lower.