California’s Proposition 13, enacted in 1978, limits the property tax on real estate to one percent of the market value when purchased, and a maximum annual increase in the tax amount of two percent. Followers of Henry George contend that Prop 13 deprived local government of its most suitable tax base, real estate taxed, and forced the state to increase other taxed that hurt business activity, and shifted power from local government to the state. According to the Georgists, Prop 13 did not constrain state spending and caused the budget deficit to grow so that California was hit with a fiscal crisis in 2008-09. What could be done to solve California’s financial crisis?