[113]

California governorship (1967–1975)
Main article: Governorship of Ronald Reagan
The Reagans in 1972
Brown spent much of California's funds on new projects, prompting them to use accrual accounting to avoid raising taxes. Consequently, it generated a larger deficit,[114] and Reagan would call for reduced government spending and tax hikes to balance the budget.[115] He left his fiscal responsibility principles behind[116] to work with Jesse M. Unruh[117] on securing tax increases and property tax cuts. As a result, taxes on sales, banks, corporate profits, inheritances, liquor, and cigarettes jumped. Kevin Starr states, Reagan "gave Californians the biggest tax hike in their history—and got away with it."[118] In the 1970 gubernatorial election, Unruh used the property tax cuts and Reagan's tax relief requests against him for benefiting the wealthy. The strategy worked as Reagan would raise taxes once more.[119] By 1973, the budget had a surplus, which Reagan preferred using "to give back to the people".[120]
Reagan reacted to the Black Panther Party's strategy of copwatching by signing the Mulford Act in 1967.[121] The act prohibited the public carrying of loaded firearms. 