Incentives Matter

Last year, California’s legislature adopted its state budget a record 100 days after its due date.

In the intervening months, California voters passed Proposition 25 which did two things: 1) it did away with the two-thirds supermajority requirement to pass the budget (retaining the two-thirds requirement to raise taxes) and 2) it stipulated that, in the event the budget is late, legislators would not be paid for any time worked between the budget’s due-date and its eventual passage.

Today is the due date for the budget.  They agreed to adopt one.