1. Political Science 173 Government and Politics of California Christian Lindke clind006@ucr.edu

2. How Was Your Week?

4. A Property Tax Crisis?

5. The Crooked Assessor

6. Property Value Problems? Russell Wolden Tax Assessor fro San Francisco The Crooked Assessor 1965 “Wolden’s discretion was for sale” Wolden and several other assessors imprisoned One committed suicide.

7. Alternate Revenue Sources Jesse Unruh and Nicholas Petris Property Tax is “outmoded, discriminatory, unfair, economically destructive, and regressive.” AB 80 Assessment at 25% of market value.

8. Crooked Assessors? Regressive? Homeowners biggest beneficiaries of assessor discretion. Business assessments rose while homeowners benefitted. WHY? AB 80 – New 25% Rule SF Homeowners had only been paying based on 9% while commercial was 35% LA homeowners 21% and commercial 45% AB 80 shifted burden to homeowners.

9. Mid-70s Housing Market Inflation House prices jumped 2-3% a month! Assessments (AB 80 based) doubled from 1975 to 1978 NIMBY – Neighborhood Groups Mediocre schools, poor police protection, planning and transportation chaos. Busing!

10. Busing and Integration

12. Income Tax Not Inflation Indexed Huge Surplus By 1978 -- $7.1 Billion (1/2 a year’s budget) $14.2 Billion Annual Budget Equivalent of $51 Billion Today 2014 – 2015 Budget $106 Billion Jerry Brown Used Surplus to Sell Re-Election Supermajority Problems

13. Prop 13 Jarvis and Gann wanted smaller government Homeowners wanted lower property taxes Passed by 2 to 1 margin Homeowners saved money, but big winners were corporations. Local governments were the big losers. WHY? Who filled the Gap to prevent catastrophe?

15. Shift of Power to Sacramento Rise of Lobbyists Domination of Sacramento by Public Employee Unions…

18. November 4 th Approaches!