Sitting in my hotel room in Sacramento, California. Home of Governor Arnold. There was an article in the paper here last night describing how broken this state is and that all of the people that voted for Arnold are now turning against him. For those of you that don't know, California's economy is something like the 7th largest economy in the world. California is also a VERY blue state, meaning that it is very left wing. Well, the typical left strategy of taxing the hell out of its residents and not controlling state programs that are designed to help the actual disadvantaged have dragged the state into the proverbial toilet. Here are just some of the issues:
- The workmans comp system is so defrauded and broke that one state representitive told an audience "It would be too expensive to go after the defrauders, so we will just continue to raise everyones insurance to cover the losses. It would be cheaper that way."
- Teachers are tenured after 2 years. So, if you get a bad teacher who hangs in there for 2 years, you have them for LIFE!
- Californians passed a proposition in the 70's that caps what the state can collect for property taxes. Now, I don't believe in over taxing anyone, but, there has to be a system in place which allows for correction to the current times. Let me give you an example...If you moved to California in 1980 and paid $100,000 for your house, you would have paid property tax of approximately $1000 a year in 1980. Based on the proposition your total tax today, 25 years later, would be $1250.00 per year. Yet a house that cost $1oo,000 in 1980 would be worth approximately $650,000 to $1,000,000 depending on where it was, today. You have seen a 600% to 1000% value increase, and have had a total of 1% added to your tax burden every year based on the original price of your house. It is not hard to understand why this happened...few people, especially retirees, could afford their own homes if the paid the actual taxes on them, but, no middle ground was established to help the state if there was an upshoot in population or a real estate boom. Here is California today...bad teachers, 48th in the national educational system out of 50 states, and no end in sight. The proposistion took money from children and schools. Take the Andy idea, just for a second, and think about it....Here goes:
Take that same $100K house you got in 1980. It is now worth $1,000,000 on the market. Establish an actual value based on location, inflation and appreciation since 1980. In other words, do not base it on market asking price or inflated market price, but on what the property is actually worth and tax it from there. Now, take that $100K house, factoring in inflation and other factors, the house is actually worth about $300K. Now your tax burden shifts from $1000 per year to $3000 per year. Still a pretty huge bargain for todays day and age. The idea works down the line also...old folks paid $30,000 for a house in 1975. Their tax now is under $500 a year. The house has an inflated value of $500,000. The ACTUAL value of the house is more like $150,000. The new tax burden is $1500 a year. I don't think that it is too much to ask for a 200% increase of your tax burden on a house you have made a %1600 profit on. Also...if there is a price drop...the same rules would apply. Your house could be adjusted down to actual value if need be.
The issue with Arnold is simple. He was voted in to change the system, but when he tries to make changes the established system fights back. For example, he has asked that teachers work 5 years before tenure instead of the current 2. Arnold is now "hurting education". It is one of those typical scenarios...Change the system, but not my part...
I loved my time in California, but unless it gets fixed, I will have a hard time moving back.
Anyhoo...I am phone interviewing with a local Seattle company today and hope to interview in person next week. I would like to spend more time at home than I currently am. I have a down day today, so I will work on a school campus project using DMP parts as well as go over some training techniques with our new trainer Thor.
Hugs and Kisses, #4