<p>June 6 will mark the 25th anniversary of California's Proposition 13 (search), the landmark victory of the 1970s tax revolt. Proposition 13 enjoyed immediate success, slashing property taxes and imposing some much-needed discipline on state and local spending.</p>
<p>Twenty-five years later, however, California's fiscal situation has changed dramatically. State expenditures have soared and the Legislature is considering large tax increases to compensate for California's $35 billion shortfall. Indeed, California's changing fiscal fortunes provide valuable insights for those seeking to limit government in California and elsewhere.</p>