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Rating: 
Summary: Nice try, but poorly written
Review: I moved to Central California in the late 1990s and was particularly curious about the history of the latter half of the 20th century; i.e., the names and events that are still regularly tossed around as common knowledge by local commentators. Surprisingly, there are very few books giving a broad overview of California history and current events during this period. "Paradise Lost" happens to be one of these few books. Politically, I believe that I am largely in agreement with Schrag (that California built world-class infrastructure during the 1960s, and, because of the "tax revolt" of 1978 and subsequent political in-fighting, has allowed it to deteriorate to third-world status). However, as a practical matter, this book seems like 368 pages of quick dash-off. Since Schrag is a newspaper editor by training, his long, rambling, run-on sentences are surprising as well as frustrating to read. The book was of some value in familiarizing me with California's recent history/current events, but it is so poorly written and organized that it does a disservice both Schrag's thesis and his readers.
Rating: 
Summary: Excellent analysis of the California tax revolt movement
Review: Summary:
Because of cuts in property taxes and a reluctance by older, wealthier, white home owning Californians to pay for services they don't personally use; public services in California are underfunded. These public services are used by ethnic minorities whose population has mushroomed in the past thirty years. These minorities are not represented at the voting polls. The polls are dominated by the older, wealthier, white voters who strive to reduce their taxes. The split between the demographic profile of the voters and the users of services is a challenge to California's state finances. Abstract:
The main themes:
1)Tax revolt;
2)Demographic forces behind tax revolt; and
3)Anti government Prop movement. Tax Revolt.
The California public sector went from being the Nation's envy in the sixties to becoming among the sorriest in the nineties. In the sixties, California ranked among the top state in per capita spending on schools, universities, and infrastructure. Now, California ranks near the bottom on all counts. This shift was due to the tax revolt started in 1978 by Prop 13. The passage of key propositions caused budget constraints. Prop 13 in 1978 reduced property taxes by 60%. It shrank cities revenues by 27%, counties by 40%, school districts by 46%. Prop 13 also limited the ability of local governments to raise funds. Any parcel tax to service new bond issuance to fund local services has to be approved by 2/3 of voters. Ever since California schools have been underfunded. The Gann's spending limit, Prop 4, passed in 1979 limited the growth in state and local spending to the % increase in population + inflation. But, school enrollment and inmate counts were rising faster than the general population. Prop 13 & 4 resulted in cuts in K-12 spending. Prop 98 passed in 1988, was to shore up school spending. It guarantees that K-14 spending be equal to 40% of the General Fund. But, a decade later school funding as a % of General Fund was lower than it was before Prop 98. Prop 98 became a cap for school funding. These propositions caused a shift away from direct taxation towards fees. New fees have been raised on real estate development, business licenses, utility services. Fees on real estate development represent up to $60,000 per home! With the passage of Prop 218 in 1996, this access to local revenues was curtailed. Prop 218 dictates that no local tax, or fee will be imposed without a vote of the affected citizen. Another impact of Prop 13 is the "fiscalization of land." Land zoning became driven towards shopping centers which generate sales tax. This fiscalization of land resulted in a slow growth of the housing stock. Demographic factors behind Tax Revolt.
Demographic shifts have caused a disconnect between voters and the users of public services. Between the 70s and the 90s, whites decreased from 78% to 52% of the population. Meanwhile, non-Whites grew from 22% to 48% of the population due to migration from Mexico, Central America, and the Far East. The non-Whites are the users of public services. In the K-12, you have a growing multi-ethnic population. In the community colleges, Latinos dominate. In the UC system, Asians dominate. In prisons, Blacks dominate. Medicaid recipients are mainly Latinos. These non-Whites users of public services are young, low income, renters. However, 78% of the voters are White. They are older, high income, homeowners. Also, parents with children in school decreased from 42% of the electorate in 1977 to only 21% in 1997. The different profile of voters and public service users is the demographic force fueling the tax revolt. Anti government movement.
The Proposition movement has rendered the California government so much harder to run. Prop 140 in 1990 set term limits at the State level. Members of the Assembly are limited to three two year terms (six years total). State senators are limited to two four year terms (eight years total). Thus, legislators have little experience running a complex State government. Thus, power has shifted from legislators to bureaucrats and lobbyists not affected by term limits. Prop 223 passed in 1998 set term limits at the Federal level. Thus, California congressmen are limited to three to year terms (six years total), and California senators are limited to two six year terms (12 years total). This puts California at a disadvantage relative to other State regarding allocation of Federal funds. California has increasingly more propositions on its ballots. And, more of them are deemed unconstitutional, and become stuck in courts. There is no review process insuring that props are legally sound before they go on ballots. In the early nineties, the Constitution Revision Commission was an effort to render the state constitution functional again. It made excellent recommendations: extending term limits, eliminating the 2/3 majority to pass local bonds, and increase property tax on businesses. The legislature dismissed all recommendations. My one rebuttal.
The author represents that California's overall tax burden is less than average. But, I compared the tax structure of the eight States with population greater than 10 millions. As of 2001, within this group, California had the highest individual income tax rate. It had the third highest corporate income tax rate and sales tax rate. It is only in property tax that it ranked below average at 6th among the eight. If we looked not at tax rates, but instead tax dollars, you'd have to bet that California's property tax would be closer to the top. This is because California homes are more expensive. A big surprise, California tax rates are much higher than in New York state in all categories. Also, all of the above does not include any comparisons of "fees" were California has to lead the nation.
Rating:
Summary: A Textbook for California Politics
Review: This book, written by Sacramento Bee columnist Peter Schrag, ends with the ascension of Gray Davis to the governorship of the state in 1998 and details the history of much of California's current political and social geography starting with the Progressive Era at the turn of the 20th Century to the Wilson Administration and the infamouse Proposition 187. Schrag provides a cursory examination of California history leading up to WWII (Progressive Era excluded), but really gets going at the post World War II suburbanization of the state as ranch homes began plowing under the farmland in the San Fernando and San Gabriel Valleys of Southern California (according to Schrag, California gained 1,500 new residents a DAY in 1962). This WWII boom, according to Schrag, lasted until the 1970's and came to a final end in 1978 with the passage of the notorious, and much maligned, Proposition 13. Up until this time, in a chapter titled "Golden Moment," California enjoyed the highest standard of living in the nation, with the best schools, smoothest highways, and affordable housing in comfortable suburban settings. However, as the honeymoon came to an end, these same suburbanites woke up and found themselves faced with high property taxes and the burden of funding the social programs of an increasingly liberal federal and state government. What emerged was a genuine anti-government tax revolt that shook the halls of Sacramento as these suburbanites revolted and slashed property taxes and basically bankrupted local governments. The passage of Proposition 13 was a watershed event in California's history and is the portal from one era to another. This slash in government revenue, and the subsequent retreat from the civic sphere, left California denuded and its government and public infrastructure in shambles. Schrag describes how school districts, highways and the environment suffered under the regimes of the Governors that these suburbanites sent to Sacramento (Deukmajian and Wilson), and how the California dream that greeted these newcomers in the heady days after WWII is about as real as the gold fields of El Dorado. He devotes an entire chapter to Prop. 13 then the rest of the book to the decline of California. According to Schrag, who continuously writes his Sacramento Bee columns from a slanted liberal viewpoint, this decline is based, not on governments own inefficiency, but in its inability to spend more of its inhabitants money. To his credit, this viewpoint is partially true. Prop. 13 effectively killed the discretionary spending powers of the state and local governents, and California is still trying to cope (recover is not the operative word because there is no cure to Prop. 13 in the near future) with the changes. Because it tilted the tax formulas in favor of sales tax, California has seens its beatiful countryside gobbled up by strip malls and big box retailers. I encourage all Californians, and others interested in the destructive power of ballot initiatives, to read this book. If you are a liberal, you'll love it, if you are a conservative you'll need to grit your teeth and read this informative and thought provoking book. If you just want to learn more about California, then pick this book up. It provides the reader with a detailed and informative primer on why California looks and operates the way it does.
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