Will Proposition 22 Cripple The Government?

November 2nd, 2010 - 9:32 pm ICT by GD  

By Gina Gomez
prop-221Nov 2, (THAINDIAN NEWS) Proposition 22 is creating a wide debate among political commentators and ordinary folks alike, with many people being skeptical about it. The proposition if passed will prevent the state government from delaying the distribution of tax revenues for transportation, redevelopment or local government projects and services, even in case of severe fiscal hardship. It would prohibit the government from shifting money from the transportation fund to the general fund. The Californian state government has been doing just that in the face of severe budget deficits. Proposition 22 seems like a good idea at a first glance but will severely hamper the functioning of the government, as per experts.

As California is suffering from huge fiscal deficits, the proposition would restrict the availability of resources for essential services. The ones in favor of the proposition state that it will be beneficial for public services. However, the ones against it state otherwise, saying that it will result in the transfer of funds from activities like health care, public schools to activities like redevelopment. Public schools are facing the danger of losing about $400 million each year while the state government will be washing their hands off $1 billion in fiscal year 2010-2011.

The government makes use of property taxes in a similar way, to help itself during financial crisis. Proposition 22 will put a stop to it after coming into effect. The ones in favor of Proposition 22 are of the view that it will properly decide which fund is being used for what purpose while ensuring that local services are not neglected by the government.

Related Stories

Tags: , , , , , , , , , , , , , , , , , , ,

Posted in Business, Politics |