Californians are sinking themselves | Salon.

It begins,

The world’s eighth-largest economy has just gone belly-up. When midnight tolled on Tuesday night with legislators and Gov. Arnold Schwarzenegger still deadlocked over how to resolve the state’s staggering $24 billion budget shortfall, California became unable to pay its bills. The state will have to begin issuing IOUs to its creditors as early as Thursday. It is the worst budget crisis in the state’s modern history.

There is an unreal, almost dreamlike quality about this moment. Dreadful things are about to happen: Hundreds of thousands of children will lose their healthcare. Five thousand state workers will be laid off. Massive cuts will decimate education at every level. Social services will be slashed. Two hundred and twenty-nine parks, out of a total of 280, will be shut down. Even some of the state’s landmarks may go on the auction block to raise money.

Yet as their state prepares to go over the cliff, California’s citizens seem weirdly oblivious, or resigned, or numb. Like inhabitants of a corrupt third-world country who have utterly lost faith in their government and in politics itself, or ostriches sticking their heads in the sand, Californians are behaving as if the whole thing is out of their control. Or even that it isn’t happening at all.

Californians are not directly responsible for the state’s budget debacle. They are not the legislators who are so ideologically polarized that on Tuesday they could not even agree on an emergency partial budget fix that would have saved the state $5 billion. But in a larger sense, Californians are indeed responsible for today’s crisis. The cumulative weight of their decisions, over decades, and their inability to reach consensus on the fundamental issue of what government should do and who should pay for it, are squarely responsible for the historic mess this unruly nation-state finds itself in today.

And later:

But the most momentous initiative was Prop. 13, which slashed property taxes. By voting for Prop. 13, while not demanding a reduction in public services, Californians were in effect saying they wanted to have it all: low taxes and social services, subsidized public education, infrastructure and the other things provided by government.

This was, in effect, a mass outbreak of cognitive dissonance, an up-yours delivered to government with the public’s left hand, while its right hand reached out for Sacramento’s largesse. Now, 31 years later, the bill has finally come due. There is no free lunch. If you want good roads, parks, decent schools (California’s schools, once the best in the nation, are now among the worst) and adequate social services, you have to pay for them.

For some reason, Californians have never come to grips with this fact. Some citizens who voted for Prop. 13 and other anti-tax measures are hard-line right-wingers who are ideologically opposed to government and don’t care if state programs die. They are the soul mates of the current Republicans in the Legislature, who see the current crisis as a golden opportunity to get rid of government programs they have opposed for years. But they are the minority. Polls show that most Californians are more centrist. They are not absolutely opposed to taxes or government programs. They want compromises that work. The tragedy of California is that its political system no longer speaks for them. The center has not held. It no longer exists. It is a self-reinforcing problem: The more the public perceives politicians as ineffectual, the more it dismisses politics altogether.

“There is no free lunch. If you want good roads, parks, decent schools (California’s schools, once the best in the nation, are now among the worst) and adequate social services, you have to pay for them.”

And the right way to pay for them is via taxes on land value, which, when those services are delivered well, rises as a result – exactly what Proposition 13 was designed to derail.

The chickens have come home to roost. California’s housing is unaffordable without life-sapping mortgages, working people who own homes are trapped in them by Prop 13, and it continues to have one of the lowest homeownership rates in the US. The housing boom and bust was more extreme in California and Florida than in the rest of the US – and this can be directly attributed to structures which suppress the property tax and force reliance on taxes smart communities avoid.

So will California go to the root of the problem, or keep trimming the edges of the leaves in the hope of reducing the deep shade?