[gscott]

The home value is reset when a house is sold. There has been a lot of buying and selling lately in California.

I have a friend who recently bought a house and his property taxes are like rent, it is just that expensive. He could rent a 1 bedroom apartment with his property taxes.

Money is coming in but as you said, too much money is being spent (through ballot intiatives (high speed rail for example) and the legislature gone-wild. But I believe that the gone-wild days have come to an abrupt end and mostly thanks to Schwarzenegger who has nothing to loose by being rational.

[donaldc]

I have a friend who recently bought a house and his property taxes are like rent, it is just that expensive.

Yes, his property taxes are probably higher than they would be without Proposition 13, because he's subsidizing those around him who have owned their homes for twenty or thirty years, and aren't paying their fair share.