“More Business and Less Politics!” Schooling, Fiscal Structure, and the 1923 California State Budget

Abstract In 1923, Los Angeles teachers protested the state’s biennial budget, a controversial document from newly elected governor Friend Richardson that significantly cut funding to government agencies. The budget was the culmination of more than a decade of fiscal policy reform that reflected a significant shift in anti-tax sentiment. The expansion of state governance in the early twentieth century required the development of fiscal policies to meet the needs of the modern state, and public debates about taxation reflected deep ideological differences about the structure and scope of government and implicated public schooling. This analysis demonstrates two features of fiscal policy reform in California. First, tax reform shaped and was shaped by the political context, demonstrating the dynamic relationship between fiscal policy and state formation. Second, debates about tax reform were ultimately about the scope of government. Anti-tax campaigns that sought a more limited government implicated schooling, the largest item in the state budget, and undermined efforts to achieve educational equity.