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California Cities Keep Declaring Fiscal “Emergencies” and Investors Are In On It

101 pointsby hyperrailalmost 7 years ago

6 comments

kyledrakealmost 7 years ago
Why don&#x27;t they declare an emergency on the actual problem, chronic shortages of housing supply, and reform their zoning and tax&#x2F;rent entitlements to fix it?<p>It&#x27;s hard for me to take anything California government does seriously right now while they&#x27;re ignoring the 10 ton elephant in the room that&#x27;s causing almost literally every other problem.<p>If they don&#x27;t start addressing this with a significant attack plan extremely soon, their tax base will leave the state in droves, and they will never raise taxes enough to make up the difference. It&#x27;s an emergency, declare it one and do something real about it.
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blackflame7000almost 7 years ago
&quot;You never let a serious crisis go to waste. And what I mean by that it&#x27;s an opportunity to do things you think you could not do before.&quot; - rahm emanuel
saghmalmost 7 years ago
&gt; Because of rules designed to limit tax increases, cities can get proposed tax hikes on Tuesday’s primary ballot only by declaring a crisis. At least two have done so this year, following at least 50 since 2008.<p>That doesn&#x27;t seem like a particularly informative year to use as a cutoff; 2009 would have been the first year of primaries during the recession, so it&#x27;s not inconceivable that there were a number of municipalities in a financial crisis then.
kelnosalmost 7 years ago
I don&#x27;t really have a problem with this. Declaring a &quot;fiscal emergency&quot; doesn&#x27;t allow the city to enact new taxes, it just lets them put new taxes on the ballot for people to vote on. They&#x27;re just using a loophole that let&#x27;s them get around what is IMO a silly law.<p>(Then again, if this loophole didn&#x27;t exist, perhaps this would encourage them to fix the actual problem with the law.)
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pietroglyphalmost 7 years ago
It seems silly and potentially dangerous to limit when a city can legislate democratically (even with the Fiscal Emergency exception.) Is there any good argument for this, other than people not liking taxes?
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notMickalmost 7 years ago
Why don&#x27;t they reduce spending?<p>Surely there are expenditures deemed &quot;being nice&quot; which isn&#x27;t a real neccessity for the local citizens?
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