I've noticed Prop 13 becoming the quite the scapegoat for the woes of various California cities lately. I'm not convinced.
The state has a huge pension liability looming over it–most of which grew after Prop 13 was passed. How did they think they were going to pay for it? Example: San Jose's fire chief makes close to $400K/year in pay + benefits. Guess what? When he retires, he's gonna keep getting paid 90% of his peak salary until he dies.[0] Meanwhile, I'm paying $1,400/month out of pocket for my family's health insurance and have to spend time managing my own retirement plan.
No one exemplifies Parkinson's Law [1] better than the government. If you let property tax increase without limits, they will grow spending accordingly and it will hurt cities like San Jose even worse during recessions and times of declining home values.
Finally I'm not convinced Prop 13 inflates housing costs or that repealing it would lower them. If rentseekers have to pay more taxes, won't they pass that cost along in the form of higher rents?
[0] http://transparentcalifornia.com/salaries/2014/san-jose/curt...