As demand increases on these services, the percentage driven budget will begin to strain, regardless of the surpluses. They were left to scramble for new methods of paying for things - after all, the demand for services had not decreased. This is where we start to look at, yes, land use and planning. One of the few tools for income that cities and counties have is the sales tax, so it seems a logical conclusion as to what comes next. Commercial entities that sell items become a prized development for their revenue.
Housing becomes something that no one prizes.
New housing means new services, which means a greater drain on the budget. So what cities and counties do is install new fees on development, jacking up the price of a new home. So we get higher home prices. This means that instead of cautious planning in most areas, cities and counties get to please commercial development, and if the big boxes want gargantuan parking lots and a nowheresville atmosphere, they get it. That's how Prop. 13 has had a direct effect on the landscape that surrounds us.