☆ 2024 takeaway #1: Fiscal conservatism, long dismissed locally, begins a welcome comeback
In Aesop's “The Spendthrift and the Swallow” fable, a wealthy young man wastes his fortune with reckless spending and ends up without a coat for the winter. Image by C. Whittingham (1814).
Misleading bond measures. Brazen tax-raising schemes. Nothing new this year as Bay Area voters faced a fusillade of misguided gov't projects targeting our pocketbooks. But this time, we weren't havin' it. Some of the worst offenders (like Prop 5) were rejected outright, suggesting an encouraging local pivot to fiscal conservatism. Here's our first in a series of five Opp Now exclusive takeaways from 2024.
Local progressives have long attempted to frame (inaccurately) all government budget decisions as evidence of "revenue" shortfalls. Any problem—whether it's parks, transit, or housing—has almost always been explained away by "underfunding."
This argument has always been quite the howler, given that budgets for these activities regularly soar into the billions, don't deliver on promises, and are proven to be rife with grift. And did we mention grossly mismanaged, to boot?
But something changed in 2024.
Whether it was the sloppily written RM4 local subsidized housing giveaway, the brazen attempt to undercut taxpayer rights with Proposition 5, or the even smaller efforts to raise taxes in SJ for activities that are supposed to be covered by the General Fund. Citizens said No. No. And No.
There's a clear takeaway from all this: the days of easy bond and tax money for local gov't are over. Citizens are demanding smarter government. More accountable government. Most cost-effective government. And government that stays in its lane.
The message from Santa Clara County citizens is clear: if you're going to tax us, you need to prove you know how to spend.
We look forward to seeing if local gov't has the self-awareness to pass the test.
Here's an anthology of top Opp Now stories about fiscal conservatism over the past year:
The self-licking ice cream cone: Housing provider Dean Hotop analyzed how SJ's homeless crisis (despite a steady stream of new taxes) is only getting worse.
Overton window shifting on San Jose BART extension: Cato Institute policy analyst Marc Joffe analyzed the arguments for downsizing BART's costly extension to downtown San Jose.
Khamis: Why won't cities solve housing crises by buying on the cheap (instead of building extravagantly)?: Past CM Johnny Khamis posited that taxpayer money would go a lot further to help our homeless neighbors if San Jose simply purchased properties on the open market.
Do upzonings produce more housing?: Market Urbanist's Scott Beyer suggested that customized high-density proposals can effect real change in California.
Expert questions SV Biz Journal's dubious panegyric on MTC housing bond: Gov't finance consultant Tom Rubin critiqued, point by point, MTC’s $10–20 bn housing bond.
VTA's housing plans waste money and hurt low-income people: Thoreau Institute's Randall O'Toole critiqued VTA's dubious proposal to add “housing provider” to its job description.
California State Auditor’s scathing report on SJ, state homelessness programs: Where did all that money go?: According to a recent audit, the local homeless industrial complex is hoovering up vast amounts of cash—with little or no effectiveness (or oversight).
Expert: Five Things San Jose Council should demand of staff to get housing and homelessness programs back under fiscal and strategic control: Market Urbanist’s Scott Beyer elucidated a sorely-needed pathway for SJ to return to fiscal and management sanity.
SJ Council, acknowledging voter fatigue re: new taxes, pulls parks parcel tax idea from Nov. ballot: SJ City officials said citizens are getting fed up with increases to cost of living, such as proposed new park taxes.
Opp Now exclusive: Libertarian presidential candidate Chase Oliver tackles BART extension, Prop 5, hot local issues: Libertarian prez candidate Chase Oliver discussed how the Bay Area can keep gov't limited in Election '24.
Opinion: Upcoming school tax measures excessive, unnecessary, misguided: Citizens for Fiscal Responsibility's Pat Waite argued that Prop 2 is costly, unnecessary, and won't ensure better budgeting from local schools.
Amidst ongoing tax debates, Friedrich Hayek reminds us why, and how, we protect CA's free market: Austrian economist Hayek believed the market's spontaneous consolidation of billions of hopes and dreams produces far better decisions than could a political "elite."
Opinion: By letting local bonds pass with only 55%, Prop 5 is a risky end run around Prop 13 protections: Concerned citizen David Eisbach warned that, if Prop 5 passed, any other proposition achieving 55% voter approval in November would become law.
School board candidate: I'm a CEO; here's how SJ/SF districts can fix their fiscal disasters: CEO Min Chang argued that school districts should stop making taxpayers cover their overspending—again and again—and instead use zero-based budgeting.
The Bay Area's mythical Omniscient Politician: Officeholders' knowledge on politics is far less extensive than we realize, said University of Austin's Scott Scheall. Then, shouldn't the economy be led by the market's “invisible hand”?
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