Happening in California 31.21
Welcome to Happening in California, a brief look at political news, insights, and analysis of the world’s fifth-largest economy.
When was the last time you overpaid for a product or service? Maybe it was a DoorDash lunch, a trip to a mechanic to get your car repaired, or concert tickets. Hopefully it didn’t set you back too much, but whatever it was, overpaying for something can leave you feeling a little bit cheated.
Well here in California, residents pay among the highest taxes, energy prices, and water prices in the nation. We even pay the most for bacon!
So it shouldn’t be too surprising that according to a recent Berkeley IGS survey, 64% of Californians believe their taxes are too high. But there is more to the story ...
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Tom Ross | President and CEO | Swing Strategies
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The Big Picture: For Californians, it’s more than just a frustration with high taxes, it’s also the perception that they are overpaying for the services they receive.
54% of Democrats;
83% of Republicans; and
66% of Independents all believe their taxes are too high.
The same Berkeley IGS survey revealed that 57% of California voters believe the state is on the wrong track.
A brief review of California’s basic infrastructure and services reveals why taxpayers feel they are getting a raw deal for the taxes they pay ...
California’s Prop 98 guarantees a minimum of 40% of the state’s general fund revenue be spent on K-12 schools and community colleges — totalling $102 billion in this year’s proposed budget.
Despite Californians’ significant investment in education, public schools are failing a majority students and families according to state testing results:
The average California eighth grader’s math skills are at a fifth grade level.
Half of all grades tested (3rd-8th and 11th) were below grade level for reading and writing.
At the same time, K-12 public school enrollment has fallen to the lowest level since 1999-2000, while enrollment in private schools, charter schools, and homeschools has increased.
The heart of California’s water storage and conveyance system was built in the 1960s and designed to serve a population of 20 million people.
With today's population of 40 million combined with a drought-prone climate, California is facing a water crisis.
The problem is not money. Since 2000, voters have passed $27 billion in water bonds, often with the promise of new water storage projects, but nothing new has been built. In fact, the last reservoir built in California was in 1979.
What’s more, two-thirds of California’s dams are at least 50 years old and many are in need of major repairs. (Recall the crisis of Oroville Dam, the tallest dam in the U.S.)
Californians are growing accustomed to continual crises ...
There’s wildfires: the most devastating of which were caused by the failure of California’s heavily regulated electrical infrastructure that, in some cases, is nearly 100 years old.
There’s homelessness: California has 22% of the nation’s homeless population, which is overwhelming some communities despite billions of dollars being thrown at the problem.
There’s massive fraud: the California Employment Development Department (EDD) lost as much as $31 billion to fraudulent unemployment claims in 2020.
The Bottom Line: Californians pay a premium to live in the Golden State, but they get a lot in return: natural beauty and boundless outdoor activities, world-class dining and entertainment, a dynamic and innovative economy, and all with temperate weather.
However, when it comes to the state’s basic infrastructure and services that are funded with some of the highest taxes in the nation — Californians can be excused for feeling cheated.
But the big question remains, where do all the tax dollars go …