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Hiram Johnson's 1913 California Budget

January 20, 2011

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Governor Hiram Johnson, who oversaw California’s adoption of the electorate’s direct legislation through referendum, initiative and recall in 1911, summarized the state’s fiscal health in 1913 as follows:

   During the past two years the percentage of increase in our public institutions has been infinitely greater than during any other biennial period.  For instance, the increase in the number of insane in our hospitals was over 15 per cent; the increase in the number of pupils in our normal schools was over 30 per cent; and with these increases so great in percentage, the State has been maintained and its various departments operated with an increase of but 8.28 per cent in appropriations.  Economy has probably been stretched to the limit in the past two years in the management of our public institutions, as these figures demonstrate.  To attempt economy beyond this will mean that sort of parsimoniousness that can only result disastrously. . . .
   The facts at this time appear to be:
     1.  That the new tax system will not provide, for the years 1913 and 1914, the revenue essential of the maintenance of the state government.
     2.  That small corporations are paying a greater proportion of the taxes than they should and larger corporations are paying a smaller proportion of the taxes than they should.
     3.  That the small householder proportionately is paying a greater amount of taxes than the great public service corporation.