11/01/2024

Dan Walters: Wrangling Over New State Taxes

As the Great Recession gripped California, state revenues plummeted by 20 percent and Capitol politicians and major stakeholders battled over which programs would take the hits.

During this decade, however, a slow recovery from recession and a temporary hike in taxes approved by voters in 2012 have boosted general fund revenues from scarcely $80 billion when Jerry Brown began his second governorship in 2011 to an estimated $116 billion today.

The politics of penury were succeeded by the politics of prosperity, and in many respects they proved to be equally daunting.

At Brown’s insistence – and constitutional mandates – the bulk of the new money flowed to K-12 schools, to paying down debts and to reserves against a future downturn.

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