A New Look at Taxes

The easy passage of Proposition 218 last November sent an unnerving message to many local governments. This was the measure that forces cities to win electoral approval from a majority of voters before increasing or continuing municipal levies. The broad swath of 218 included general taxes, fees for public services and special property assessments that provide funds for everything from fire protection to libraries and parks. But voter approval was needed, the argument went, because local government spending was out of control.

The fear was that taxpayers would vote no on most levies without much long-range thought about the consequences. Blanket rejection at the polls would have tied the hands of local governments, forcing them to cut badly needed services. And investors’ services, like Moody’s, were so concerned that they began downgrading the credit ratings of many California municipalities, well before any votes.

Well, voters in many parts of the state proved Tuesday that they were well-educated and well-prepared for their new tax-related responsibilities. Most of the tax measures on the ballot in Los Angeles County and in the Bay Area passed, some by overwhelming margins. This despite the fact that a second tax-limitation initiative that had been held up in the courts for years was also in effect.

In all, there was no resounding rejection of special levies, but perhaps that could have been foreseen. In Anaheim, for example, officials anticipated the issue last fall, when 218 was on the ballot, and sought and received voter approval to finance improvements related to the expansion of Disneyland.

On Tuesday, 86% of Pasadena voters agreed to renew the city’s library tax for another 10 years. In Claremont, voters approved taxes that account about a third of the city’s general fund.

Some measures were rejected in other jurisdictions--Hawaiian Gardens and San Dimas, for instance. If voters there were skeptical of the efficiencies of their governments, that theory will now be tested.

But the fact that many voters seem to have a certain faith in their elected leaders certainly must be viewed as positive. Now, someone ought to notify Moody’s.