https://www.msn.com/en-us/news/us/california-governor-likely-to-announce-bigger-budget-deficit-than-the-dollar225b-announced-in-january/ar-AA1b4THa?li=BBnbfcL

"… Democrats in the state Senate want to raise taxes on 2,500 of the largest companies so they can cut taxes by about 25% for most other businesses a plan that Newsom has already said he opposes. And environmental groups want Newsom to reverse his planned $6 billion cut to some of his climate proposals."

"But restoring those cuts could be difficult. The situation has only gotten worse since Newsom first announced the deficit in January. California's tax collections have continued to decline, falling $4.6 billion below what the governor's office had been expecting. The nonpartisan Legislative Analyst's Office says they expect the deficit to be about $5 billion bigger."

" This time, California's deficit looks to be for real. California's Legislature taxes the wealthy more than other states. About half of the state's money comes from just 1% of earners. That means that the state is vulnerable to big swings in the stock market, which is the source of wealth for most rich people."

"The stock market has been down as the federal government has raised interest rates to combat inflation."

"The downward turn has had the biggest impact on California's massive technology industry as companies like Google, Facebook and PayPal have laid off thousands of workers."

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I don't know why I am fascinated by the Golden State's fiscal problems: maybe it's because they try to appease various factions through massive spending with money they don't have. The pressure this year from Democrats is to appropriate $ 1 billion on increased salaries for child care workers.

Thank goodness my state of residence has a constitutional requirement to have a balanced budget.

The other States will be forced to bail California out some day.

Another benefit of Texit, not having to pay for deadbeat states.

Hasn't California asked the feds for money already? It's a given

ChemEAg08 said:

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Another benefit of Texit, not having to pay for deadbeat states.

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Texit now!

I've wondered about this topic and the ramifications of it

Would Texas be able and allowed to pass a law stating that would NOT pay to cover deficits of other states?
I may be a moron in writing this. Or maybe had too much scotch last night, too little sleep

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" This time, California's deficit looks to be for real. California's Legislature taxes the wealthy more than other states. About half of the state's money comes from just 1% of earners. That means that the state is vulnerable to big swings in the stock market, which is the source of wealth for most rich people."

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And, yet Democrats: "The rich don't pay their fair share!!!!"

F'ing dumbasses.

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About half of the state's money comes from just 1% of earners

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I can't decide which is more shocking to me: this stat in and of itself, or the fact that the people in charge have access to this stat and STILL think the way out of their problems is to tax the rich even more.

If Trump wins, he should evict California and tell them to get lost.

It's a cancer on the country.

J.P. 03 said:

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About half of the state's money comes from just 1% of earners

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I can't decide which is more shocking to me: this stat in and of itself, or the fact that the people in charge have access to this stat and STILL think the way out of their problems is to tax the rich even more.

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It's ridiculously moronic.

The most mobile demographic in the world who can live anywhere and who doesn't have to be in California and the state ties themselves to that very select sliver of people for 50% of funding.

And these morons effectively lead the country by the nose on policy. God help us.

The same idiotic state that proposed millions for reparations.

The same state with Teachers on strike demanding reparations for their students. Same teachers that their students are only 21% proficient in math!

Leftist never saw a dollar that was not theirs that they could not spend!

nothing $5 billion...$200 billion...or $14 trillion in proposed reparations won't fix

It is fascinating, because it's a microcosm of what communism in America looks like, but at the state level people can relatively easily just move to another state.

There is a force multiplier type of factor here, as taxpayers leaving makes the problem exponentially worse.


Then you think about the ramifications, direct and indirect, of the entire state doing exactly what economically liberalized cities did like Detroit, Baltimore, etc.. One of the bigger ones is what happens when a state defaults on liabilities?

YouBet said:

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J.P. 03 said:

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About half of the state's money comes from just 1% of earners

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I can't decide which is more shocking to me: this stat in and of itself, or the fact that the people in charge have access to this stat and STILL think the way out of their problems is to tax the rich even more.

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It's ridiculously moronic.

The most mobile demographic in the world who can live anywhere and who doesn't have to be in California and the state ties themselves to that very select sliver of people for 50% of funding.

And these morons effectively lead the country by the nose on policy. God help us.

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What baffles me is that this 1% does not pack up and move. Plenty of nice places in this country where you will not be milked dry.

They better hurry up and move because as I recall Cali wants to tax people for years after they leave.

This is really funny thinking about how the Govna was bragging about 'his' $100 billion surplus last year. This is typical of how Liberals run public finances = into the ground

Hey, its only money. There's plenty of it-- every liberal thinker.

We elected a brain dead president, and bought seemingly every lie the left sold since 2019/2020.

Why not elect hair gel covered fire hazard that bankrupted the state of California next? - leftists.

Aggie95 said:

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nothing $5 billion...$200 billion...or $14 trillion in proposed reparations won't fix

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If they recalculate those reparations down to available dollars, it means each black person with over 12 years residency in California will likely be entitled to a McDonalds Happy Meal.

And they still don't have a budget with the new fiscal year coming 48 days away.

California: $ 27.5 Billion Deficit



The chickens are coming home to roost. I cannot wait to watch that state burn to the ground economically. I have zero compassion or concern because every bit of it they brought on themselves.

And no, the federal government should not bail them out. Let them wallow in the mess they made for themselves and learn to live within their means just like every one else.

At least climate change fixed their water shortage for a while. One less thing.

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And no, the federal government should not bail them out. Let them wallow in the mess they made for themselves and learn to live within their means just like every one else.

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You and I both know that will not happen. In today's America, progressive policies must not have consequences. We will all be paying for California's bailout some day.

TexasAggiesWin said:

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This is really funny thinking about how the Govna was bragging about 'his' $100 billion surplus last year. This is typical of how Liberals run public finances = into the ground

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His budget was literally 127 billion off of the projected surplus, in less than 1 year...

How is that humanly possible?

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About half of the state's money comes from just 1% of earners

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It's amazing how mentally challenged politicians are to think this is sustainable. If this 1% packs up and leaves then 50% of their tax base vanishes over night.

Now up to a $32 Billion deficit based on scroll I just saw on TV

"But, but... red states are more dependent upon the federal government than blue states."
- every leftist from a blue state

Hubert J. Farnsworth said:

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And no, the federal government should not bail them out. Let them wallow in the mess they made for themselves and learn to live within their means just like every one else.

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You and I both know that will not happen. In today's America, progressive policies must not have consequences. We will all be paying for California's bailout some day.

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If the Democrats are in charge when it all comes crashing down they yes, you're right. If DeSantis wins the White House for the next eight years, I wouldn't bet on it. He doesn't seem to me to be a man who caves because of political pressure nor does he suffer fools.

...and canceling a $500 million plan to help small businesses pay higher tax rates associated with some state debt.

Wait, were they using state money to help small businesses pay STATE taxes??? What sense does that make?

I think California has an old law allowing them to follow you around to other states and countries to keep collecting taxes. It was in response to highly paid Hollywood actors like Gregory Peck and William Holden etc moving to Europe !

UTExan said:

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Aggie95 said:

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nothing $5 billion...$200 billion...or $14 trillion in proposed reparations won't fix

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If they recalculate those reparations down to available dollars, it means each black person with over 12 years residency in California will likely be entitled to a McDonalds Happy Meal.

And they still don't have a budget with the new fiscal year coming 48 days away.

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They can just raise the debt limit...

J.P. 03 said:

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About half of the state's money comes from just 1% of earners

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I can't decide which is more shocking to me: this stat in and of itself, or the fact that the people in charge have access to this stat and STILL think the way out of their problems is to tax the rich even more.

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They don't have to worry about the 1% swinging an election.

"Let's raise taxes so that even more companies leave our state. Brilliant!"

Leftists are morons.

HarryJ33tamu said:

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"Let's raise taxes so that even more companies leave our state. Brilliant!"

Leftists are morons.

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The leftist politicians aren't. They know exactly what they are doing. The leftist sheep voters are morons though.

The majority of their tax issues started in the 70's with Prop 13, which is in response to housing prices and taxes pushing those on fixed incomes out of their homes. This is of particular interest to Texans as we now face the same growing issue.

Essentially values are frozen at purchase price and value cannot increase more than 2% a year. Unless you apply for permits for additions. Where they royally screwed us is the allowed homes to be put in trusts and they allow for title to change in a parent-child transfer without reasses the home. This has froze. The real property tax base and pushed more tax generation from personal and business income. Which has then also exposed the state to swings in the market.

The other side of the coin is they spend too much and cut corners in areas like their public pensions.

If you work in CA they will try to tax you regardless if you don't step foot in the state. Although all states are grappling over how to tax remote workers. Then the nonsense on tax you after you left the state and don't do work in the state, complete desperation move.

FrioAg 00 said:

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It is fascinating, because it's a microcosm of what communism in America looks like, but at the state level people can relatively easily just move to another state.

There is a force multiplier type of factor here, as taxpayers leaving makes the problem exponentially worse.


Then you think about the ramifications, direct and indirect, of the entire state doing exactly what economically liberalized cities did like Detroit, Baltimore, etc.. One of the bigger ones is what happens when a state defaults on liabilities?

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Communism only works when everyone lives in it. Otherwise the capitalists in the group migrate out to where the other capitalists are, and the communist system collapses under its own weight of unfulfilled entitlement. It took the Soviets about 60 years to figure this out, so their Soviet leadership ditched the communist name and went back to being the authoritarians they already were.

BTW, communism doesn't really "work", it just means everyone suffers equally unless they are in charge