chapter  26
The Fall of the House of California: How the Richest State in the Country Cratered into Budgetary Chaos and a Fiscal Nightmare
Pages 11

IN THE BEGINNING The first seeds of California’s present budget problems were planted in 1978, when a voter referendum, Proposition 13, passed by large margins, rolled back the property tax as a source of revenue for local governments. As housing values rose dramatically in California in the economic expansion of the 1960s and 1970s, so did assessments and property taxes.