Deep Roots: Local Government Structure in California

sections of text, not to exceed three paragraphs, to be quoted without written permission, provided that full attribution is given to the source and the above copyright notice is included. iii Foreword Political scientists have long struggled with the question of the " right size " for local government—whether the measure is geography or budgets. Jurisdictions covering many square miles, such as a typical county in California, may have the merit of a diverse and extensive tax base but, at the same time, may be seen as " out of touch " with the needs and desires of the average resident or voter. Larger public budgets may have the merit of flexibility in allocating funds among different services and in setting different priorities over time, but smaller budgets and jurisdictions are seen as more " user friendly " and more easily modified in response to community-level preferences and concerns. For all this understanding of basic budgeting and governance principles, there is no supportable theory for the right-sized budget or jurisdictional boundary. Nevertheless, a substantial literature supports the argument that " excessive " governmental fragmentation may complicate the coordination of services and the planning of land and infrastructure development. In California, Proposition 13 is often viewed as a iv significant incentive for governmental fragmentation: Smaller units of government can be established with the explicit purpose of segregating— and collecting taxes from—high-revenue-producing properties. Research fellow Paul Lewis tackles this topic head-on in this report. He concludes that there is no evidence that Proposition 13 created any unusual movement toward either the creation of special districts or the incorporation of new cities. In fact, the slowing of local government fragmentation brought about by the creation of Local Agency Formation Commissions in 1963 has not fundamentally changed over the 20 years since the passage of Proposition 13. This report is one in a series of PPIC publications stemming from our ongoing program of work in governance and public finance. Two recent publications of direct relevance to the analysis of Proposition 13 The completion of each of our studies results in a better understanding of the changing shape of governance and public finance in California. Although formulating policy options is never easy, the clarity of the issues involved is definitely improving as our work proceeds. Summary Many observers have argued that California's system of local government is too complex and fragmented. Such complexity, some say, …