California
Joel Fox: Connecting the dots on fights over tax policy in California
Connecting dots to create a picture is a children’s game that needs to be played by adults to see the big picture when contemplating votes on different public policy measures. That is because political maneuvering involving separate policy measures is employed to have taxpayers open their wallets when they don’t always see how one measure connects to another.
Consider the multiple efforts to attack the homelessness issue.
Proposition 1 on the March ballot was hailed by proponents, especially by Gov. Gavin Newsom, as a way to address homelessness. The $6.4 billion bond barely passed with 50.2% of the vote. One of the objections to Prop. 1 was that the state would take control of some local revenues already designated to deal with homelessness.
Whether the state can do a better job on homelessness than local governments is a valid question. After the March election, a state audit was issued that castigated state spending on homeless programs as failing to track the spending of billions of dollars or to appropriately measure results of the spending.
That the audit was released after the election deserves an investigation. Unfortunately, such tactics are standard gamesmanship to entice voters to support more taxes.
But back to connecting the dots. Now that Proposition 1 clears the way for the state to control some homeless funds, along comes an effort to raise local sales taxes in Los Angeles on a permanent basis for homeless relief. While the effort to gather signatures to put the tax increase on the ballot as an initiative began prior to the recent election, the fact that the state absconded with homeless funds will become part of the pitch to pass the tax.
The effort to raise taxes for homeless services in Los Angeles comes after bond HHH passed in 2016 and tax Measure H was passed by voters in 2017 to deal with homelessness. Yet, despite millions of dollars, the homeless count in both the city and county increased about 10-percent in last year’s tally.
To add another twist to get more homeless funding, the sales tax increase initiative is fronted by civic groups rather than being forwarded by government bodies as Measures H and HHH had been. The reason is that a California Supreme Court decision claimed that the Proposition 13 requirement to pass a tax for a special purpose with a two-thirds vote only applies to government bodies, not to a citizen’s initiative. The proposed special purpose sales tax would need only a majority vote.
Expect another example soon. With Los Angeles voters supporting Measure ULA to reform roads in the last election at a steep cost, we are now hearing from the city’s Chief Administrative Officer that because of budget shortfalls, partly caused by ULA, tax increases may be needed.
Without connecting the dots, citizens are asked to deal with these measures as stand-alone solutions. However, there is a way for voters to take some power over the big picture and have a say in seemingly unconnected activity.
Qualified for the November ballot is the Taxpayer Protection and Government Accountability Act (TPA). If passed, the measure will restate that special local taxes require a two-thirds vote and that voters have a final say on taxes passed by the legislature. In addition, it would require that some majority-vote special tax measures that pass before voters make their decision on TPA can be reconsidered by voters such as the proposed LA sales tax increase.
Of course, supporters of tax increases are dead set against TPA and don’t want voters to have a chance to approve it. They have petitioned the California Supreme Court to throw the proposition off the November ballot. The Court has yet to decide.
No one should be surprised at this latest twist in the strategy to gather more tax revenue.
Just connect the dots.
Joel Fox is an adjunct professor at Pepperdine University’s Graduate School of Public Policy. Previously, he served as president of the Howard Jarvis Taxpayers Association and as editor and co-publisher of the California political and business blog Fox and Hounds Daily.
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One Of California’s Wealthiest Suburbs In 2025 Has Small-Town Charm And A Fun Social Scene Outside LA – Islands
Coto de Caza in Orange County, California, about an hour south of Los Angeles, may not be a household name. But viewers of “The Real Wives of Orange County” might recognize the wealthy, gated residential community as the former home base of the glitzy Bravo reality series. While stars of the show — currently in its 19th season — now live in other affluent areas, the imagery of Coto de Caza is still appealing for those contemplating a luxurious move. Coto boasts a private setting where high-profile celebrities, executives, and wealthy professionals live amid abundant open space, well-regarded schools, community events, a family-friendly atmosphere, and easy access to the county’s bounty. Indeed, in this well-to-do development of about 15,363 people, where the mean household income is $232,470 (more than double the state’s average), the most recent median list price of a single-family home was $2 million. There are splashier compounds in Coto, including the late real estate mogul William Lyon’s home selling for $125 million, which includes 20 bathrooms.
These prices are a long way from the area’s humble origins of barley fields and grazing sheep, according to the Los Angeles Times. Once a private hunting lodge, the area’s first homes were built in 1975, eventually transforming into a 5,000-acre master-planned community with about 4,000 homes and condominiums. Nestled against the Cleveland National Forest and just east of the SR 241 toll road, Coto de Caza strives to offer residents not just a home, but a lifestyle. Recreation is never far with area baseball fields, basketball courts, volleyball courts, parks, and picnic areas. Outdoor pursuits continue at the adjacent Thomas F. Riley Wilderness Park, a 544-acre wildlife sanctuary filled with groves of Western Sycamores and Coast Live Oaks and five miles of trails for hiking, biking, and horseback riding.
Golf and mingle
A big attraction to the development is the 36-hole Coto de Caza Golf & Racquet Club, a central hub offering youth summer camps for kids and social events like trivia nights, comedy nights, and brunch with Santa. A yearly social membership can cost $2,880 with $180 in monthly dues. A golf upgrade can hike the initiation fee up to $30,000 with $750 monthly dues. Joining the club is optional, but your monthly Homeowners Association (HOA) fees aren’t. Those range from $300 to $475, and cover 24-hour manned guard gates, daily patrols, and landscape maintenance of common areas. A cheaper ticket to fun is connecting with neighbors for poker nights, movie screenings, and monthly mixers.
This is a neighborhood where you can stay put for your child’s entire education. Parents send their kids to top-notch schools, including Wagon Wheel Elementary, Las Flores Middle, and Tesoro High, in the Capistrano Unified School District, all within a short 2.5 to 5.5 mile drive away. Grocery shopping also is fairly close, about 10 minutes to Rancho Santa Margarita stores such as Ralph’s and Trader Joe’s. To really shop, like at Bloomingdale’s and Gucci, the Valhalla of retail — South Coast Plaza — and the vibrant arts city of Costa Mesa are just a 30-minute drive. Plus the glorious Pacific Ocean is about 17 miles away in breath-taking Laguna Beach.
Coto de Caza’s charms are many. A few cons to keep in mind: With a location about 10 miles inland from Interstate 5, Coto de Caza is more remote so commutes may take longer; busy professionals need their shut-eye so nightlife peters out by 9pm; and wildfire risks mean finding insurance can be a challenge. For a buzzier locale, check out the iconic coastal escape of nearby Newport Beach.
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