Written during the summer and fall immediately following the passage of Proposition 13 (the California tax limitation amendment), this paper examines circumstances leading to its overwhelming support at the polls and the immediate efforts of state and local units of government to cope with the changes. The following are discussed: the political and economic climate that engendered the movement; the politics of the campaign; the vote itself; the immediate implications for various units of government, particularly elementary and secondary educational institutions; the state's bail-out legislation; the immediate and unsuccessful legal challenges; similar activities in other states; and the prospects for further tax and expenditure limitations movements in other states. Appendices at the end reproduce the text of Proposition 13 and show how a district can calculate its revenue for the school year. (Author/LD)