California, which started this year with a 9 billion budget shortfall, now has reached a 16 billion shortfall. The blame is placed on a few things, but what really caught my eye was the fact their revenues were below what they expected.
The revenue shortfall is 3.5 billion this year. My thinking on this is the exodus of taxpaying citizens and businesses from the state impacted the revenue more than anything else. With unsustainable taxes and regulations, many left just to survive.
Another thing is the loss of property value. The bloated, unrealistic housing boom (thanks Barney) left overpriced real estate that the politicians found as a windfall in taxes, except they spent the money they should have saved. Now, since the value doesn't yield the same taxes, they are left with less than their robust spending habits need to survive.
I imagine you could spend days looking at the problems and analyzing the different facets of the California money pit, but they would all lead to the same conclusion: overspending. Nobody can spend more than they have and expecting revenue is as foolish as stuffing money into one-armed bandits.
So, for those that live in California, work hard and played by the rules: I feel for you. You didn't have this coming, especially if you're getting to the later part of life and trying to determine how your fixed income will relate to costs in the future. The "free spirit" lifestyle that the California climate attracted has left a state with way too many people enjoying the fruits of your labor. Between politicians, bureaucrats, entitlement pigs and illegal aliens, you've now reached the point that all you made, or will make in the future, isn't enough and they're coming for more. Hopefully, you can escape before the deficit Zombie apocalypse. They may not feed on your flesh, but your personal wealth is at substantial risk.
In Case You've Wondered
My blog is where my wandering thoughts are interspersed with stuff I made up. So, if while reading you find yourself confused about the context, don't feel alone. I get confused, too.
If you're here for the stories, I started another blog: scratchingforchange.blogspot.com
One other thing: sometimes I write words you refuse to use in front of children, or polite company, unless you have a flat tire, or hit your thumb with a hammer.
I don't use them to offend; I use them to embellish.