Throughout his term, Governor Brown declared virtually every month that there would be no new general taxes — and he had little trouble keeping his word, because the state was sitting on a massive surplus. State Treasurer Jesse Unruh at one point indicated the reserves might total $5 billion.
But Brown was hurt because the state did not respond soon enough to the public clamor for property-tax relief. During his term, the value of homes rose at a record pace, causing rapid escalation in the taxes on those houses. This produced 1.2 million signatures for the Jarvis-Gann initiative.
In 1977, Brown tried to push a so-called “circuit breaker” concept of taxation, one in which the most property-tax relief would go to those with the lowest incomes. That effort was one major reason the session ended with no relief in sight — and why the Jarvis-Gann measure developed such great momentum.
It so happens that the property tax, even for homeowners, has not been the major escalator in the California tax structure. The state income tax has been rising at a much faster rate. But the income tax is collected by payroll deduction, while homeowners see their property-tax bill all at one time.