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Michael Meranze

Michael Meranze

Posted: August 24, 2009 03:46 PM

California's Crisis: Coming to a Neighborhood Near you

What's Your Reaction:

California's budget crisis continues through the summer and threatens to worsen in the fall. In its wake a rough "common sense" has emerged among the State's political class and local and national commentators and pundits. California, we are instructed, has finally reached the end of its ability to sustain its commitments -- derived from the era of Pat Brown -- to social support institutions and widespread, high-quality and low cost higher education, not to mention broad-based commitments to K-12 public education. The Great Recession, they insist, has put an end to this earlier vision of the Golden State as new economic realities compel us to scale back government action and commit ourselves more and more to a reliance on the private sector for increasingly limited social goods and services. To be sure, at the margins of this understanding -- at least outside of the state's notably ideological Republican Party -- there is recognition that the crisis is not simply fiscal but political. California, after all, is hampered by a wide-range of structural issues that make governance more and more difficult: the requirement (established in Proposition 13) that any tax increase requires a 2/3 vote in the Legislature, an even older requirement that the State Budget requires a 2/3 vote as well, the imposition of term limits that have had the perverse effect of empowering lobbyists, the gerrymandering of the State's Assembly and Senate that has aided ideologues (again especially in the Republican Party) in primary campaigns and the proliferation of ballot initiatives that have removed from legislative discretion more and more spending and governing decisions. In all, California has become a state where responsible governance seems impossible.

While this is the conventional wisdom, it is significantly wrong. For what has come crashing down around us is not the Golden State of Pat Brown's dreams but the Iron State of Howard Jarvis' imagination. What has come paid this summer is the vision of a State focused not on social welfare but on corrections, not on education and broad-based economic development but on the reduction of tax burdens, not on the young and the future but on those properties and people already established. California's political leaders have spent the last 30 years cobbling together enough funding and compromise to keep at bay the full implications of the Iron State. The Great Recession has shattered those efforts.

As with so many stories of contemporary California, this one starts with Proposition 13. Proposition 13 has protected many on fixed-incomes from losing their homes to rising property taxes while enabling many others to minimize the negative effects of rising housing costs (at least once they have been able to purchase property). But it did so in (calculatedly?) perverse ways. Proposition 13 not only protected individual homeowners but commercial property as well (hardly those on fixed incomes) while making it increasingly difficult (by imposing a 2/3 rule) to raise taxes of any kind. By stripping local governments of important sources of revenue it shifted power for education and other locally organized public functions from cities and counties to the state where they were increasingly caught up in the dysfunctional nature of state-wide politics. Consequently Proposition 13, while in form and self-description a moment of "citizen's revolt," actually served to centralize revenue and spending questions at the level of state government while simultaneously making it more difficult for those decisions to be made rationally. These effects may not have been immediately apparent but as the number of citizen initiatives increased (many on the model of Proposition 13 -- most importantly one establishing term limits) a political system was put into place all but designed not to function.

But Proposition 13 was only one side of the Iron State. During the 1980s, California embarked on a policy of mass incarceration. Between 1980 and 2000 the criminal inmate population grew from just under 25,000 to just over 160,000. Today it stands around 170,000. In recent years this upsurge has been exacerbated by the passage of a 3 Strikes initiative but it emergence is earlier -- as part of the shift from the state of Pat Brown to the state of Howard Jarvis. Whether as part of the war on drugs, in response to fears of sexual offenders, or the perception of an epidemic of violent crime, the penal system has grown by leaps and bounds. While not necessarily consciously linked, the logic of Proposition 13 (turning the state away from social spending, limiting a steady source of revenue, placing an emphasis on what was already in place over what might be in the future) and the logic of increased incarceration (incapacitation over retraining, emphasizing the punishment of past deeds over programs to encourage opportunities and lessen the temptations to criminal activity) worked in tandem. Perhaps the clearest indication of this shift in priorities has been the relationship between spending for higher education and spending for corrections. For at least the last decade the two have been in clear competition for State funds. In this competition, prisons have been winning -- as their portion of governmental spending has gone up higher education's has gone down proportionally. In a final perversity this long-term shift in priorities and spending has left both corrections and education unable to meet public expectations. The decade long reduction of state support for the UC and CSU systems have left them overburdened and underfunded -- this reduction means that the recent budget cuts threaten to end the renowned California system of higher education we have known. And despite the growth in spending on corrections, the logic of mass incarceration has meant that the number of inmates always exceeds the capacity to house them adequately and safely.

Like the state's polity more generally, the correctional system is in a state of acute crisis. The recent riot at Chino State Prison was only the latest example of an overcrowded and unsafe penal system -- unsafe for guards as well as inmates. Federal judges have determined that the health system within the prisons is so inadequate as to be unconstitutional (while endangering the health of inmates within the prison and the general public when inmates leave prisons); other judges have ordered the prison population reduced by 40,000 over the next two years. The multiple crises of the prison system have allowed for some discussion of reform of the correctional system -- but only on the margins. New ideas are being floated about early release for some non-violent offenders, reexamining some sentencing policies, and reevaluating the treatment of parole violations. But at least in the near future it seems likely that whatever small programs for drug addiction or inmate training that exist will be cut. Nor does the will to seriously reconsider the State's emphasis on punishment of individuals as opposed to investment in society appear anywhere on the horizon of the state's political leaders.

It is at the point of this failure of imagination that California's crisis offers lessons on a broader scale -- although the fog of stories of the state's profligate spending and high taxes serve to conceal this (in fact, in per capita terms California's social spending is by no means high and the state's tax rates for individuals somewhere in the middle of the United States). By presenting this crisis as the last remnant of the "Great Society" rather than as the crisis of the Iron State, we miss its larger implications. California was hardly alone in making the shift from investment and social spending to retrenchment and punitive spending in the 1980s. True, California went the farthest down this path (in part because it had the farthest to go). But from the recently repealed Rockefeller drug laws through the expansion of the prison systems in Texas and Florida, onto the increasingly punitive response to poverty in the Clinton years, and the continuing disparity in sentencing laws, states and the federal government have chosen the Iron State over the Golden State. And whatever arguments there may be about the relative effectiveness of imprisonment in affecting crime rates (a topic of great controversy amongst scholars and analysts), one thing seems certain: a policy that exacerbates the brutalization of society is not one that will make us safer. Investing in prisons means investing in institutions that produce neither goods nor new opportunities (aside from the limited jobs available for prison employees and the one-time opportunities in construction); money spent on imprisonment is money taken from rebuilding our worn out infrastructure, our schools, our communities, and our economic future. Insofar as corrections remains at the heart of our social policy -- rather than as a supplemental or marginal support as it was throughout most of United States history -- it is the Iron State stealing from the future of the Golden State.

California's present crisis, then, is not an effect of an outdated liberal irresponsibility. It is instead the logical outcome of a radically reactionary agenda that seeks to limit the State's ability to help the needy and invest in the future, while strengthening its ability to incapacitate through a continually expanding system of incarceration. Pursuing a fantasized past before either the government or newcomers changed their state, proponents of the Iron State have succeeded only in creating conditions that ensure that more people will be imprisoned and less people educated; that more will be unemployed and less skilled in new jobs; that more will be less productive and less find fulfilling work. The expansion of imprisonment is the cutting edge but it is only one part of this policy perspective. Perhaps nothing reveals the logic of the Iron State more than Governor Schwarzenegger's decision to cut funds from health care for the poor and those suffering from AIDS while refusing to impose an extraction tax on gas and oil that would have provided more than enough funds for these programs.

California's crisis may come to a neighborhood near you not only because California is central to the national economy but because it exposes the long-term effect of our recent social policy choices. In California the effects of the Iron State grow clearer everyday. Unless we wish to descend into more and more social insecurity this policy logic needs to be overturned -- not only in California but in the nation at large.

 
 
 
 
 
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HUFFPOST SUPER USER
cloudminder
07:03 PM on 08/25/2009
oh and visit this site too:

http://www.reformtheuc.com/
01:14 AM on 08/26/2009
I see it's the same legislation that the California Faculty Association recommends. Yes, I'm supporting those too.
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HUFFPOST SUPER USER
cloudminder
07:01 PM on 08/25/2009
No, I can't agree with your statement:

"The decade long reduction of state support for the UC and CSU systems have left them overburdened and underfunded -- this reduction means that the recent budget cuts threaten to end the renowned California system of higher education we have known."

not when there are so many stories of UC corruption, if you want a list just visit the links posted on the home page here:

http://cloudminder.blogspot.com/

you have to address those issues before you say UC is underfunded. Dean David Kessler's case makes it clear that UC doesn't even know how much money it has
01:11 AM on 08/26/2009
The CSU is WAY underfunded. It has more campuses and teaches many more students and gets less money, plus it attracts fewer research dollars. BUT it also needs reform, yes. Much too much money is going to management and executive compensation. The Chancellor of the CSU makes more than the President of the US. His housing allowance and his car allowance are more than my entire salary, and I'm a Full Professor!

I don't think anyone needs a 1,000 a month car allowance, and certainly not when student fees are being increased. I think there ought to be a rule that if student fees go up, the top execs get no raises. The administration is much too top heavy--too many people issuing orders, and too few, poorly paid people teaching classes and doing the day to day business of the university (student services, office work, etc.)

The CFA is trying to encourage a reform bill to increase accountability for foundations and affiliate organizations.
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HUFFPOST SUPER USER
Joseph Palermo
Huffington Post Blogger/Author/Professor
HUFFPOST SUPER USER
allenosuno
Just me being myself
09:07 AM on 08/25/2009
We just elected a president who is in the process of breaking every promise he made in the 2008 election to shift America away from war, right wing two-tiered economics, and punitive world view to a more humanized, people-investment-based society. But so far, we are still in Afghanistan and Iraq plus fighting a covert war in Pakistan; we have rewarded banksters for destroying our economy by letting them keep their ill gotten profits AND continue basically unregulated, to make taxpayers pick up the tab for their greed. He is in the process of selling out his promise of MEANINGFUL healthcare reform for ALL Americans and he seems more interested in having beer with the obstructionists than in pushing through his promised agenda over their objections as FDR once had the courage to do. We see a statist Democratic party that looks more and more like "GOP_lite" The Iron State, punitive, cut the poor feed the rich mentality seems to be firmly in place on a national level as well as in 'cutting edge' California.
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HUFFPOST COMMUNITY MODERATOR
rf dude
Just an average Man of Bronze - now in Steel!
09:03 AM on 08/25/2009
Funding got cut, eh Doc? Tsk, tsk...

But blaming Prop 13 for Californias financial troubles, tho', is getting a little worn and tired.

With a Legislature that is not accountable to voters ( nearly 100% re-election odds, no threat there), prisons run as profit-centers (with prisoners the " product" and correlated to "profit"), a horribly inefficient state bureaucracy increasingly siphoning off money into overhead expenses, Prop 13 is the only thing standing between The State and My Money (what's left of it).

Besides, Prop 13 already has a work-around for building infra-structure - it's called "Mello-Roos". People living in new developments pay their "normal" property taxes and a second Mello-Roos tax that pays for the new schools, fire stations, etc. serving the development area. Mello-Roos runs for 25 years or more.

Local cities have been steadily increasing sales taxes to make up for budget shortfalls, but no politician has the political _courage_ to propose cutting programs - EVERY program is assumed to be necessary, at least according to whomever champions the program.

Now that the money is running out, we see the true protection of Prop 13 - it has finally forced somebody in government (the Gov, the Legislature - whomever...) to CUT SPENDING _someplace_.

The joy ride is over (at least for now), and all of the really GREAT things California wants to do have to come back to reality.

Or, repeal Prop 13 and let the financial drain REALLY begin...
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08:19 AM on 08/25/2009
Bull! Ca is #1 in sales and income tax and #6 in overall taxes. We aren't undertaxed our elected officials SPEND TOO MUCH! Why does it cost CA almost 3 times as much to house a prisioner than TX or FLA? We have a lot of waste and some of our pension policies are out of control. We need to put everything on the table and make cuts in every department and eliminate some programs and jobs altogether. Prop 13 had nothing to do with this OVERSPENDING did.
HUFFPOST SUPER USER
allenosuno
Just me being myself
09:13 AM on 08/25/2009
Your source please for all your right wing myths you just stted. Where did you get the # 1 in sales tax and # 6 in overall taxes...source please...and you left out that our property taxes haven't changed much since 1979 and Prop 13 (in contrast to property taxes in other states) which would be able to lower our income taxes if the tax burden hadn't been mostly shifted from property tax to sales and income tax...and you fail to mention that the top 9 megacorporations and the oil companies pay very little tax proportionate to their enormous profits extracted from California. There were over a billion dollars in NEW loopholes for big business in CA, and big business has failed to produce any new jobs to justify all that largesse. Why don't you right wingers check your facts and look at the whole picture instead of repeating your stupid, angry mantras based on ignorance and GOP talking points?
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HUFFPOST COMMUNITY MODERATOR
rf dude
Just an average Man of Bronze - now in Steel!
09:33 AM on 08/25/2009
Nee is correct, allenosuno - just Google it!

http://latimesblogs.latimes.com/money_co/2009/02/california-tax.html

BTW - you CAN click on the link, eh??
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HUFFPOST SUPER USER
Omar Medina
Guerrillero intelectual - MEChistA
05:23 AM on 08/25/2009
California is definitely in a mess, our good times have been "Terminated." In general, I agree with Professor Meranze. We are focused too much on corrections and not enough on social development. If I had the power, I would immediately modify Prop. 13 to allow tax increases on commercial property, that would be a good chunk of change. I would put an end to privatized corrections and ensure the state system were more efficient in it's spending. Education would receive massive amounts of increased funding as well as progressive reform. Assuming there is no national healthcare reform, I would create a single payer system within California. Re-examine our penal code and do my best to ensure that California gets back a greater amount of the Federal taxes we pay.

California's energy policy would drastically change with an initial push toward totally clean energy with the the ultimate goal of creating new industry and eliminating the need coal and oil for energy. Once at that level, I would ban the sale carbon emitting automobiles and require electric (or other locally produced energy) vehicles that our also clean for the environment. My hopes would be that costs of energy would decrease and that the money spent on it would remain within the state, I would likely require energy creation to be run by municipalities. With less money being spent on energy, consumers would have more to spend on other things that would hopefully better our economy.

But I'm rambling . . .
08:35 AM on 08/25/2009
I'm in education and we don't need more money - we need to use the money we are given wisely. There is a lot of waste in education and in every governmental agency. We keep throwing good money after bad. We need to stop and take a good look at every agency and program and make CUTS. We are one of the highest taxed states. Revenue isn't the problem OVERSPENDING is.
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HUFFPOST SUPER USER
Omar Medina
Guerrillero intelectual - MEChistA
02:33 PM on 08/26/2009
Just one part of education where I believe we could spend more: teacher salaries. I think that increased salaries would attract a higher caliber instructor. What we pay tehm is also a reflection of the value we place on education.
11:45 PM on 08/24/2009
Getting a majority of California's voters to pass an initiative to do away with the super majority requirement is a hard thing to do. Almost as hard as getting the two parties to put aside their differences long enough to pass a budget that's benificial to most people in the state and not just those special interest who pay their way.
08:00 PM on 08/24/2009
Mr. Meranze - I disagree with a few points of your analysis.

First, you confuse and conflate two issues - namely (1) why can't the state pay for everything it wants to pay for and (2) given that it cannot pay for everything, what spending cuts will it make to bring it back to fiscal equilibrium. This makes things murky in my reading.

Second, you are wrong about certain aspects of Prop. 13. Prop 13 is not about protecting Grandparents from losing their homes to rising tax burdens - that is just what the right wants people to think. Everyone knows that if that were an issue, legislatures could easily draft an exemption or tax credit for people on fixed incomes to avoid any unfair increase in property tax.

That said, your analysis of the consequence of proposition 13, that it shifted the ability to collect revenue away from the local and toward the state, is right.

But the bottom line is and always will be: Prop. 13 is the cause of California's problems and will continue to be until it is dealt with. Cutting spending won't work because as you note, perverse consequences follow when the state is forced to balance the relative priorities and values of guns and butter.
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07:46 PM on 08/24/2009
You want to help the needy?

Send the illegal aliens back.
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Gardencc
11:14 PM on 08/24/2009
That tired old excuse just doesn't hold up to the light of facts. Illegal immigration is down over 40% since the Great Recession started. Wonder if contributions to Social Security are down an equal amount?

If employers didn't hire them, most illegals wouldn't be here. But, employers love illegals because they can pay them less than either legal immigrants or US born. And, I suppose you and your children will go work in the fields...
08:20 AM on 08/25/2009
In CA alone we spend BILLIONS to provide health care and an education to people who are here ILLEGALLY. We could put that money to better use.
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10:31 AM on 08/25/2009
"If employers didn't hire them, most illegals wouldn't be here."

Not all employers.

Thinking so is the result of fuzzy thinking.

Thinking that all illegal aliens work in the fields rather than being drug dealers or engaging in other illegal activities is also the result of fuzzy thinking. As is thinking that only illegal aliens work in the fields rather than legal aliens and Americans.

Do you want to help the needy Americans in California? Do you want to stop those employers who are hiring illegal aliens?

Lock them up.
HUFFPOST SUPER USER
Gardencc
06:31 PM on 08/24/2009
Well written Professor Meranze! The Iron State has indeed rusted out. --UCLA alum
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HUFFPOST PUNDIT
jmpurser
See My micro-bio
06:15 PM on 08/24/2009
Thank you. I had the "conventional" view of CA's difficulty but honestly didn't understand how it could work that way. This description fills in the missing details and completely turned my opinion around.
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meryta
When it's worth sharing.
06:12 PM on 08/24/2009
Thank you Michael for outlining this "lesson of history". It may be time to kick "state capitalism" to touch & choose a new road. embrace humanism.
Lets have Californians consider other Californians' welbeing.
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HUFFPOST SUPER USER
Nishnabe
teacher, armchair philosopher and mechanic
06:00 PM on 08/24/2009
Professor Meranze, thanks for a well-reasoned analysis of the situation in California. The latest debacle of the budget debate will be repeated year after year until the electorate realize the need for change at a fundamental level. I was just getting ready to start college at the UC system when Prop 13 was passed. Even though there were dire warnings of the consequences down the road, the corporate culture sold the mess as a way to "save grandma's home" the same tactic in reverse now with "saving grandma from the death panels" in attacking the public option in health insurance. Wonder if the educational system requires a single course in ethics for business majors or even an MBA from the UC system?
08:02 PM on 08/24/2009
Saving grandma's home with Prop. 13 is like trying to swat a fly with a shot from a bazooka.
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allenosuno
Just me being myself
08:22 AM on 08/25/2009
It is distressing, speaking of getting the electorate of Calfornia to realize the need for change at a fundamental level away from the Iron State back toward the human state. I see so MANY ignorant, reactionary bloggers on many news-sites around the state (television news in various cities, newspapers in various cities). It is discouraging to see that right wing myths (Iron State) have become INCREASINGLY ROOTED in the California public's consciousness. Many blogger buy hook line and sinker the "need" to cut the services to average people, but they DO NOT see any need to impose an oil severance tax or to make the top 9 megacorporations stop being able to write their own tax check due to loopholes that allow them to pay what they want and 'outsource' the rest of their taxes (I may not have stated this just right but it's essentially true that big corporations get away with tax murder in CA). The public wants to 'cut cut cut' without realizing that is THEY and their CHILDREN who will suffer. As in the nation as a whole, the right has SOLD SUCCESSFULLY its lies and the public has bought them. How do we turn this around so we can reverse Prop 13 and other perverse structural problems?