California State Finance and Proposition 13

The passge of Proposition 13 directly impacted the financial activities of the public sector of California. Fiscal interrelationships between the State government and units of local government within the state, and even interrelationships among those local units, were dramatically changed. The State was forced to take immediate action concerning such disparate issues as government reorganization, financial assistance to cities, counties and special districts, and determination of the best way of implementing an imprecisely written initiative. This paper examines the impact of Proposition 13 on the State government and on the intergovernmental system in California