The California High-Speed Rail Authority was barred from issuing more than $8 billion in bonds to help finance a high-speed rail line from San Francisco to Los Angeles after a judge said the agency failed to provide sufficient justification for approving the sales.
California voters approved Proposition 13 to rein in property taxes that had doubled in 10 years. More than three decades later, that rebellion has mortgaged the state’s future, saddling it with the nation’s highest debt and lowest credit rating.
If you listen to the union-financed advertising campaigns, you would think that corporate interests control California’s capital and are bulldozing the interests of “working-class” taxpayers to promote conservative causes. In the minds of union activists, billionaires are conspiring to turn deep-blue California into a red zone.
Arnold Schwarzenegger swore after his first month as California governor that he’d rip up the state’s credit cards. Instead, the Republican former action- movie hero pushed through at least $52 billion of borrowing.
Los Angeles Mayor Antonio Villaraigosa proposed dismantling California’s Proposition 13, which helped begin a nationwide anti-tax movement, in favor of a “grand bargain” that would boost levies on business property.
California’s Legislature passed a Democrat-written budget that papers over a $10 billion deficit without extending higher taxes blocked by Republicans, as lawmakers beat a midnight deadline to pass a plan or lose pay.