California voters will evaluate 14 statewide ballot measures this year, with all but two directly concerning the financing of public services. This collection of propositions represents the latest iteration of "ballot box budgeting," a process where voters are asked to prioritize or limit public funds rather than leaving such decisions solely to elected officials. This approach reflects a philosophical divide that has persisted for nearly half a century since the passage of Proposition 13.
The current election's most debated measure, Proposition 40, highlights this fundamental philosophical conflict. Proposition 40 proposes a 5% tax on the wealth of California's billionaires, aligning with the argument that extensive public services improve the well-being of all Californians. This stands in contrast to Proposition 13, which, enacted in June 1978, limited property taxes and embodied the belief that high taxes hinder families' ability to enhance their own welfare.
Before Proposition 13, tax and spending issues were rarely addressed through the initiative process, according to a yearly summary from the Secretary of State's Office. Voters generally left these financial matters to elected state and local officials. Proposition 13 significantly reduced property taxes, which had been the primary revenue source for local governments and school systems. It also made it more challenging to raise taxes across the board. The substantial impact of Proposition 13 also spurred the use of ballot measures to influence not only public finance but a wide range of policy issues. Subsequent elections saw an increase in proposals related to criminal punishment, immigration, affirmative action, and same-sex marriage.
This year, two measures not directly related to taxes and spending continue this broader trend. Proposition 39 would mandate voters to present identifying documents, while Proposition 45 aims to reduce the use of the California Environmental Quality Act to impede development and infrastructure projects.
Despite the diversification of ballot measure topics, taxes and spending have continued to be a dominant feature of post-Proposition 13 elections. This trend began in 1979 with a special election called by then-Gov. Jerry Brown to approve Proposition 4, known as the "Gann Limit." Named for Paul Gann, a co-author of Proposition 13, this measure established a cap on state spending and remains a factor in shaping the annual state budget. Brown, who had initially opposed Proposition 13, subsequently declared himself a "born-again tax cutter" and collaborated with Gann to secure voter approval for the spending limit.
A more significant factor in the state budget is Proposition 98, passed in 1988. This measure, sponsored by the California Teachers Association, was designed to mitigate Proposition 13's impact on school finances. Proposition 98 incorporates a complex formula that guarantees a specific level of state education aid, typically amounting to about 40% of general fund revenues. The California Teachers Association is currently opposing this year's Proposition 40, the proposed wealth tax on billionaires. Proposition 40 designates nearly all its revenue for healthcare, explicitly excluding Proposition 98. This particular conflict illustrates how "ballot box budgeting" can create divisions among interest groups, even those who generally align against anti-tax forces.
Anti-tax organizations, such as the Howard Jarvis Taxpayers Association, have consistently advocated for their cause, successfully preventing changes to Proposition 13 and promoting further tax limits. This year, these groups are supporting Proposition 43, which would increase the vote requirement needed to approve some local taxes. They are also opposing Proposition 3, a measure backed by the California Teachers Association, which seeks to make permanent a temporary tax on high-income Californians. This temporary tax was originally approved by voters in 2012 at then-Gov. Brown's request during his second term.
The ongoing "war over taxes and spending" in California has now spanned 48 years. As evidenced by the array of ballot measures appearing this year, this conflict shows no indication of concluding.