California's Proposition 13 and the Fiscal Limitations Movement in the United States

Author:

Danziger James N.1

Affiliation:

1. University of California, Irvine

Abstract

There have been substantial recent efforts to use public policy measures to limit public taxing and spending in the United States. These fiscal limitations policies are analysed, with primary attention on the explanations for and the effects of Proposition 13, the measure enacted by California voters in June 1978. More broadly, the characteristic features of fiscal limitations measures in the United States are explicated. These measures attempt to place constitutional or statutory constraints on a government's expenditure levels, on its revenue generation capabilities, or on the nature of its fiscal policy-making process. The data and analysis suggest that some of the fundamental forces underlying fiscal limitations measures might emerge in many ‘First World’ political systems and that such measures, as a policy innovation, might diffuse widely.

Publisher

SAGE Publications

Subject

Sociology and Political Science

Reference33 articles.

1. The Polls: Taxing and Spending

2. Recent empirical analyses have used multivariate techniques to determine whether certain forces are systematically associated with fiscal limitations measures passed in American states during the 1970s. The findings indicate that such measures tend to occur where property tax revenue is high relative to per capita personal income and where other limitation measures had previously been enacted. But intuitively appealing forces (e.g., rate of spending increase; existence of citizen initiative procedures) were not significant and the analysts concluded that 'there is no simple relation between the characteristics of the state and the passage of fiscal limitations measures.' Rather, they talked of a 'limitation epidemic' . SeeAnthony H. Pascal , Fiscal Containment of Local and State Government (Santa Monica, Calif., The Rand Corporation (1979 ). Pp.73 -6 .).

3. It should be noted, however, that one product of the 'grass-roots' movement for fiscal limitations measures in the United States has been the development of some organized interest groups. Most of these groups are not yet fully institutionalized; but some, such as the National Tax Limitation Committee are widely active in fund-raising and information dissemination. For example, this Committee and the American Conservative Union provided organizational assistance and very large financial contributions to support the November 1978 campaign for a fiscal limitations measure in Colorado.

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