A graph showing the volatility of income tax revenue (solid line). Prperty tax revenue is in blue.(Graphic: LAO)
Could making our state budget more dependent on property tax revenues be the key to eliminating the roller-coaster budgets of the last two decades? Since the early 1990s, we’ve lived through the boom and bust cycles of the California budget. Today, we are more dependent than ever on personal income taxes. And those taxes are more progressive than they have been in years, meaning our economic stability is tied to the fate of the wealthy .
A powerplant at sunset. (Photo: David Crockett)
Gov. Jerry Brown proposed in his recent state-of-the-state address that California should take steps to approve an aggressive new greenhouse gas reduction goal for 2030. This additional proposal would take California beyond the current 2020 goal set by Assembly Bill 32, the California Global Warming Solutions Act of 2006. The AB 32 Implementation Group is concerned that creating a 2030 goal will shift attention away from current regulations that are intended to meet the greenhouse gas emissions goal California’s elected officials adopted in 2006 for 2020.