While it comes in a distant second place in general popularity to The Terminator, Conan the Barbarian has always been The Lamb’s favorite Ahhhhhnold Schwarzenegger movie.  For those of us who were teenagers when Conan came out, we’ll never forget the famous scene when the Mongol general asks, “Conan, what is best in life?”  The response:

Now, what’s best in life for Governor Conan and California may be entirely different from what’s best in life for those of us that live in the other 49 states.  Governor Conan has petitioned Uncle Sam (effectively, the other 49 states) for a loan.  He says that the credit markets have made it all but impossible for California to borrow in the debt markets.  Bloomberg.com says that California will run out of money by the end of October without $7 billion in additional funding.

Next week, California will try to help itself by selling even more debt.  The state is already the largest borrower in the entire municipal market.

Clearly, there is another very basic way that Governor Conan can generate badly needed funds:  he (and the legislature) can raise taxes, specifically property taxes.  The Lamb realizes that property taxes are a live wire in California politics.  His in-laws live there and they are adamant that their property taxes should not be raised.

What you may not know, dear reader and likely property tax payer, is that California has enacted a law known as Proposition 13, now in effect for nearly three decades.  Among other things, this law restricts property tax assessments to:  1) a cap of 1% of assessed value and 2) an increase of no more than 2% annually (increases which themselves are capped by the annual cost of living increase if it is less than 2%).

What practical ramifications does this wonderful law have?  First, two homeowners with nearly identical houses can often pay radically different amounts in taxes.  Second, this law fomented one of the greatest housing bubbles in history.  This simultaneously exacerbated the risk of homeownership and made its attainment all but impossible for many in our nation’s most populous state.

Additionally, as the website wealthandwant.com points out, “California’s schools have gone from being highly respected to being well below the middle of the pack.”  It should be duly noted, however, that The Lamb’s beautiful and brilliant wife is a proud graduate of a California public school.

For years, Californians have enjoyed some of the lowest property tax rates in the nation.  In fact, as of 2007 the state was tied with Delaware for the third lowest rate (barely ahead of Alabama and Hawaii) at just 0.68%, less than half the national average of 1.38%.  Before Californians, who have been the beneficiaries of low property taxes for so long, hit the rest of us up for a loan, perhaps they should try pitching in a bit more themselves.

Although The Lamb is not part of the 10% of Rule #3 — 90% of the world doesn’t care about your problems; the other 10% is glad you have them — he can nevertheless assure Governor Conan of one thing:  if California does decide to borrow money from the rest of us and doesn’t return it, “We’ll Be Back!”