Les Jones

California’s referendum system

Wednesday, May 20th, 2009 | Economics |

Californians just rejected a slew of propositions (California-speak for ballot referendums). Here’s why their system may not such a grand idea:

The problem is multifaceted, but I think that the ultimate root is that it takes a simple majority vote by the populace to mandate spending, allocate bonds, or cut taxes, but a 2/3rds vote to raise anything but a general, unrestricted tax. That formula just can’t work over the long term. After decades where the populace voted “yes” on virtually all new spending, and “no” on all new revenue, this crisis was all but inevitable.

That sounds right. Californians hate taxes, but love stupid projects paid for by tax dollars.

Tags: california

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