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How Cities in California Have Responded to Fiscal Pressures Since Proposition 13
Author(s) -
Reid Gary J.
Publication year - 1988
Publication title -
public budgeting and finance
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.694
H-Index - 30
eISSN - 1540-5850
pISSN - 0275-1100
DOI - 10.1111/1540-5850.00771
Subject(s) - revenue , per capita , total revenue , california proposition 13 , state (computer science) , service (business) , business , control (management) , economics , fiscal year , agricultural economics , finance , economy , macroeconomics , demography , population , management , algorithm , sociology , computer science
Fiscal pressures on California cities have been severe since the passage of Proposition 13. Federal and state aid policies have, in fact, exacerbated an already wrenching pattern of revenue losses since FY 77‐78. State aid, in particular, has perversely dropped the most for those cities hit hardest by reductions in other revenues outside their direct control. Despite this, California cities have kept total real per capita revenues and expenditures constant over this period by increasing revenues from a variety of local sources—and especially from current service charges for enterprise activities. Furthermore, cities hit hardest by exogenous revenue losses have increased locally raised revenues the most. In short, cities in California have responded to reductions in revenues outside their direct control by increasing revenues from sources within their direct control, rather than by reducing expenditures and their revenue‐increasing responses have tended to be in proportion to the losses they have faced in exogenous revenues.