The press is carrying misinformation about the budgetary problems in California (here is an example). They blame much of the problem on Proposition 13, which they would have you believe has permanently held down property tax revenues.
Proposition 13 only holds down property taxes so long as the property is owned continuously by the same owner. Once the property is sold to a new owner who is not a direct relative (i.e., parent, child), the taxes are reassessed upward to reflect the new sales price.
My guess is that most CA properties have been sold at least once in the last 10 years, meaning that their property taxes are based on relatively high values. So, when people tell you Proposition 13 is at fault, dare them to prove it.
CA has budget problems because they spend too much. When times are good, and tax revenues are high, the CA legislature finds new ways to spend the money to buy votes, or they cut taxes. Then when times are bad, as they are now, they can't find the money to keep providing the goodies to which voters have quickly become accustomed.
