The U.S. Census Bureau's recent report indicates California's population is reversing a three-year decline with a 0.6% increase, yet this marks only a modest rebound towards a new era of slower growth. Long-held beliefs that population increases are essential for community funding are being challenged as municipalities must adapt to a reality with minimal growth. Proposition 13 has entrenched the notion that growth must be self-financing, leading to significant impact fees that can exceed $100,000 per home. As growth slows, the burden of costs is increasingly passed onto existing residents, highlighting the urgent need for new financial models for California's communities.
California's current population reversal signifies a shift towards a new era of slow growth, urging communities to reconsider the idea that growth must finance everything.
The philosophy that 'growth must pay for itself' often translates to 'growth must pay for us too,' leading to higher costs for existing residents when growth ceases.
With rising impact fees topping $100,000 per home, the financial burden shifts disproportionately onto developers and new residents during a time of stagnation in population.
California's development agreement laws allow cities to extract additional costs from developers, further complicating the financial equilibrium in a state grappling with slow growth.
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