We need to be able to create and modify laws. The current process is modeled on the swiss initiative process. See http://en.wikipedia.org/wiki/Popular_initiative_(Switzerland)
Why is it that the people do not have the ability to propose changes to our constitution? And why can California and most western states do so, but we as US citizens cannot!
Please see http://en.wikipedia.org/wiki/California_ballot_proposition and http://ballotpedia.org/Laws_governing_the_initiative_process_in_Oregon and many many more.