ABSTRACT
This chapter centers on California budget making in terms of process and the long-term costs to Californians. California is bankrupt, maybe not in a technical sense but in virtually every other imaginable context. The state has lost its ability to produce reliable annual balanced budgets that meet the public's needs. Compared to other states, California has the third highest personal income tax requirement. Sin taxes refer to taxes collected on discretionary services such as tobacco, alcohol, and gaming. The tax rates for all three of these services are incredibly low and have remained so for years. In addition to high- and low-taxed sectors, a few industries in California pay no state income taxes on state-related operations. Officially titled the Local Taxpayer, Public Safety, and Transportation Protection Act, the constitutional amendment prevents the state from seizing special district, local redevelopment agency, and local transportation funds made available through sales taxes.
