Getting real about reform report cover featuring U.S. and State of California flags.

May 4, 2026

By Jennifer Ito, Justin Scoggins, and Manuel Pastor

Major budget shortfalls are forcing governments and public institutions throughout California to make difficult decisions. The mounting fiscal challenges underscore the limitations of incremental budget adjustments and temporary revenue measures. There is increasing pressure to pursue new revenue options—and revisiting the structural foundations of our property tax system is one of the options likely to be considered.

Since 2015, we have estimated the potential revenue gains if commercial / industrial property were assessed at fair market value as opposed to the current system which is based on acquisition value. Our current findings: Assessing all commercial / industrial real property at fair market value could bring in an additional $18.2 billion to $25.1 billion statewide (with a mid-growth scenario estimate of $21.4 billion) in 2028-29, which is the earliest year in which such a reform could be implemented.

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Check out the previous Getting Real About Reform reports below.

Read our other publications by research area

    Immigrant Integration & Racial Justice

    Our work on immigrant integration and racial justice brings together three emphases: scholarship that draws on academic theory and rigorous research, data that provides information structured to highlight the process of immigrant integration over time, and engagement that seeks to create new dialogues with government, community organizers, business and civic leaders, immigrants and the voting public to advance immigrant integration and racial equity.

    Economic Inclusion & Climate Equity

    In the area of economic inclusion, we at ERI advance academic theory and practical applications linking economic growth, environmental quality, and civic health with bridging of racial and other gaps; produce accessible and actionable data and analysis through the data tools; and establish research partnerships to deepen and advance the dialogue, planning, and actions around racial equity, environmental justice, and the built environment.

    Social Movements & Governing Power

    ERI’s work in the area of governing power includes: conducting cross-disciplinary studies of today’s social movements, supporting learning and strategizing efforts to advance dialogues among organizers, funders, intermediaries, evaluators, and academics, and developing research-based social change frameworks and tools to inform—and be informed by—real-world, real-time efforts towards a vision of deep change.

    Publications Directory

    In 2020, the USC Program for Environmental and Regional Equity (PERE) and the USC Center for the Study of Immigrant Integration (CSII) merged to form the USC Equity Research Institute (ERI).

    The full list of publications published under our previous and current names can be found in our publications directory.

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