Proposition 2 on the budget in California

Proposition 2 is a law statute that protects the unlawful increase of property tax by municipalities in Massachusetts. The statute also known as initiative petition was passed through majority vote in 1980 but was effected in 1982. The statute allows the municipalities a certain percentage which is allowed to effect of two and half. This initiative is similar to other tax measures that were passed by the congress in United States at the same period. The statute was much affected by California State and the municipality had to abide by the rules (The Boston Globe, 2009).
  
The proposal of California people to vote for this statute into law had a lot of contrivances and it had an effect on the budget. The statute proposal to prevent any further increase in property tax was very risk because this meant little allocation of funds to municipalities. The cities were forced to work on tight budgets that lead to less development on cities. State allocated little funds to California municipalities which could have been allocated with the highest amounts of money to ensure clean streets, well lighted city and also the employees to get good salaries (The Boston Globe 2009).

Proposition 2 did not allow this to happen and it was a problem that caused a lot of disputes in particular sectors. Social welfare, human resource management services and the housing sector allocations in the  fiscal year budget of 1992 had the biggest share of 13 billion compared to municipal allocation that were low. The author feels that proposition 2  had an effect in California budget particularly property tax and the Congress should review the statute to avoid future conflicts.