California state government spent $145 billion last fiscal year, $41 billion more than four years ago when Gov. Gray Davis got recalled by voters. With all that new spending -- a whopping 40% increase -- we ought to be in a golden age of government with abundant public services for all.
So why does it seem like the quality and quantity of government is not all that different from 2004? How many of us feel like we are getting 40% more public services, 40% better schools, roads, parks and so on?
The Legislature and governor, grappling with another huge budget deficit, are suggesting raising taxes, so it seems opportune to ask what we got from the last $41 billion.
Some of it went to cover increases in the cost of living, and state spending naturally grows with the size of the population. But even adjusting for inflation and population growth, state spending is up almost 20% compared with four years ago, a big enough bump that ordinary Californians should be able to notice it. The state's financial statements describe where the money went -- the big gainers were education ($13 billion), transportation ($10 billion) and health ($10 billion) -- but not why these billions don't create even a blip on our day-to-day radar.
One possibility is that we simply do not notice all of the valuable services we receive. A national 2007 survey by William G. Howell at the University of Chicago and Martin R. West at Brown University found that respondents underestimated spending in their school district by 60%; on average, they believed spending was $4,231 per student when in fact it was $10,377. They also found that Americans underestimated teacher salaries by 30%. How many Californians know that public school teachers in the state earn an average of $59,000 a year, essentially tied with Connecticut for the highest average pay in the country? Likewise, perhaps we don't notice the repaired roads or new buses and trains that take us to work.
On the other hand, maybe these billions of dollars just do not translate into services that are valuable to us.
Is paying the highest teacher salaries in the country delivering a better education for our children? Are roads and transit being built near where we live? Do big raises for prison guards promote rehabilitation and lead to more humane prisons? If funds are being directed to satisfy powerful special interests -- teachers, builders, prison guards -- rather than everyday people, the spending might not result in tangibly improved services for the typical Californian.
