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the California case, the rhythms of tax reduction are strong indicators of structural change and, as table 3 demonstrates, show how the Keynesian state’s delegitimation accumulated in waves, culminating, rather than originating, in Tom Bradley’s 1982 and 1986 gubernatorial defeats. The first wave, or capital’s wave, is indicated by the 50 percent decline in the ratio of bank and corporation taxes to personal income taxes between 1967 and 1986 (California State Public Works Board 1987). Starting as early as 1968, voters had agitated for tax relief commensurate with the relief capital had won after putting Ronald Reagan in the governor’s mansion (Mike Davis 1990). But Sacramento’s efforts were continually disappointing under both Republican and Democratic administrations (Kirlin and Chapman 1994). This set in motion the second, or labor’s, wave, in which actual (and aspiring) homeowner-voters reduced their own taxes via Proposition 13 (1978).25 The third, or federal wave, indicates the devolution of responsibility from the federal government onto the state and local levels, as evidenced by declines of 12.5 percent (state) to 60 percent (local) in revenues derived from federal aid. The third wave can be traced to several deep tax cuts the Reagan presidential administration conferred on capital and the wealthiest of workers in 1982 and again in 1986 (David Gordon 1996; Krugman 1994). The sum of these waves produced state and local fiscal crises following in the path of federal crisis that James O’Connor ([1973] 2000) had analyzed early in the period under review when he advanced the “welfare-warfare” concept. As late as 1977–78, California state and local coffers were full (CDF-CEI 1978; Gramlich 1991). By 1983, Sacramento was borrowing to meet its budgetary goals, while county and city governments reached crisis at different times, depending on how replete their reserves had been prior to Proposition 13. Voters wanted services and infrastructure at lowered costs; and when they paid, they tried not to share. Indeed, voters were quite willing to pay for amenities that would stick in place, and between 1977–78 and 1988–89, they actually increased property-based taxes going to special assessment districts by 45 percent (Chapman 1991: 19).
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Ruth Wilson Gilmore (Golden Gulag: Prisons, Surplus, Crisis, and Opposition in Globalizing California (American Crossroads Book 21))