Budget whiplash: California faces $25 billion deficit

[Kushinator]

And it also gave stimulus money to individuals and businesses who had to report it as state income. And 99 weeks of unemployment.

Again, states didn't get trillions of dollars like you stated.

 

[eman623]

Again, states didn't get trillions of dollars like you stated.

I said billions, not trillions. And states absolutely got federal stimulus as did people in states who paid income taxes.

California was locked down and no one was working. How do you think all those surpluses came from?

 

[Kushinator]

I said billions, not trillions.

You are telling a lie. What you wrote can be quoted:

The feds handed out trillions in borrowed money to the states.

And states absolutely got federal stimulus as did people in states who paid income taxes.

I already showed how much the states received in budgetary aid. The overwhelming majority of stimulus funds went to people and businesses. This is a fact, so stop trying to spread false information.

 

[Rollin'Da64]

Texas needs to bus more illegals to CA for all the free stuff.

 

[yankintx]

I can see this pissing contest is going no where.

 

[trouble13]

The state is going from a $97 billion surplus (thanks US taxpayers for all that free stimulus money!) to a $25 billion deficit in a single year.

This is what happens when your tax rates are so progressive that literally half of the state's income tax revenue is paid by 1% of the taxpayers. If the stock market goes down and they have a bad year, the state goes broke. And when they flee the state (as they are doing in droves) to places like TX and FL which have no personal income tax, it hurts the state even more.

The Dems who runs the state could widen the tax base, but that might cost them an election. So forget that.

Budget whiplash: California faces $25 billion deficit

California could see a budget deficit of $25 billion next year, a stark change from the unprecedented surpluses of the past two years.

calmatters.org

They need to raise their debt ceiling

 

[eman623]

They need to raise their debt ceiling

California can't run permanent debt. They have to balance their budget one way or another

 

[BitterPill]

The state is going from a $97 billion surplus (thanks US taxpayers for all that free stimulus money!) to a $25 billion deficit in a single year.

This is what happens when your tax rates are so progressive that literally half of the state's income tax revenue is paid by 1% of the taxpayers. If the stock market goes down and they have a bad year, the state goes broke. And when they flee the state (as they are doing in droves) to places like TX and FL which have no personal income tax, it hurts the state even more.

The Dems who runs the state could widen the tax base, but that might cost them an election. So forget that.

Budget whiplash: California faces $25 billion deficit

California could see a budget deficit of $25 billion next year, a stark change from the unprecedented surpluses of the past two years.

calmatters.org

The only bad news is that the lip-progs from California will likely export their bankrupt political biases. The good news is fewer people in California.

MAGA.

 

[eman623]

Without blue areas, America would be a legit shithole country. Blue areas = 75% of national GDP. California ranks 5th if treated as a nation and ranked against the rest of the world, in the size of its economy. As for sweet tax dollars, red states are leechs. Takers. Mooches. McConnell's KT is the biggest, clawing back something like twice what it sends.

That's mostly bullshit. California has a lot of companies headquartered here, but that doesn't mean the economic activity happens here.

For example, if someone in Alabama goes to the local Verizon store and buys a iPhone, that's treated as economic activity for Apple (a California company) and Verizon (a New Jersey company). But it's really neither of those. It's activity in Alabama.

Guess which state has the highest GDP per capita? It's Delaware. Why? Is Delaware a powerhouse hotbed of economic output? No. It's a state that has favorable corporate law and a lot of companies have their nominal headquarters there.

It's also worth noting that a large part of California's economic output comes from it's massive agriculture sector, which lies in the large red areas of the state. Calling that "blue" GDP distorts reality.

Of course, a lot of tech and other companies are fleeing blue states as they grow less and less friendly to business. We may yet see red states grow in the rankings.

 

[stealthycat]

some people on this forum would argue massive Govt debt is fantastic, don't worry about it !

 

[VanceMack]

some people on this forum would argue massive Govt debt is fantastic, don't worry about it !

Yep...most peoples position on debt just depends on who is running up the debt.

 

[Phys251]

some people on this forum would argue massive Govt debt is fantastic, don't worry about it !

"Deficits don't matter"...unless a Democrat is in the White House.

 

[Gatsby]

This is what happens when your tax rates are so progressive that literally half of the state's income tax revenue is paid by 1% of the taxpayers. If the stock market goes down and they have a bad year, the state goes broke. And when they flee the state (as they are doing in droves) to places like TX and FL which have no personal income tax, it hurts the state even more.

It's mostly not the richest Californians fleeing the state...it's mostly the people who can't afford the insane cost of living due to the state's dysfunctional housing market and zoning policies. California is indeed committing slow-motion suicide, but right now the state seems to be becoming a gated community for rich people, and Dickensian squalor for people living on the streets. Everyone in between is getting chased out of the state because the rent is too damn high.

 

[stealthycat]

"Deficits don't matter"...unless a Democrat is in the White House.

I've never held to that belief, massive spending isn't good, ever

CA is Democrat led, I'd expect it to be billions in the hole though

 

[MTAtech]

The state is going from a $97 billion surplus (thanks US taxpayers for all that free stimulus money!) to a $25 billion deficit in a single year.

This is what happens when your tax rates are so progressive that literally half of the state's income tax revenue is paid by 1% of the taxpayers. If the stock market goes down and they have a bad year, the state goes broke. And when they flee the state (as they are doing in droves) to places like TX and FL which have no personal income tax, it hurts the state even more.

The Dems who runs the state could widen the tax base, but that might cost them an election. So forget that.

Budget whiplash: California faces $25 billion deficit

California could see a budget deficit of $25 billion next year, a stark change from the unprecedented surpluses of the past two years.

calmatters.org

The below AP article explains the deficit.

Democratic-controlled California taxes rich people more than other states, meaning most of its drop in revenue is because the uber-wealthy aren’t making as much money as they used to. That’s why California is often one of the first states to have budget problems when the economy starts to falter.

The S&P 500, a key indicator of the health of the stock market that drives the income of the superrich, has fallen more than 17% since its peak in January. State revenues are now $41 billion below expectations, according to an outlook published Wednesday by the nonpartisan Legislative Analyst’s Office. The estimated deficit is lower because some of those revenue losses were offset by lower spending in other parts of the budget.

While California taxes high income people more, Texas taxes low income people more.



Yet high-income workers are still moving to CA. Low-income are moving out, because of housing cost.

Who’s Leaving California—and Who’s Moving In?

The primary driver of California's population loss over the past few years has been residents moving to other states. We examine the latest demographic data for those moving out of and into our state and discuss factors that underlie these decisions.

www.ppic.org

 

[GOP Hippo]

Crime rates?

1. District of Columbia - 7,985.93 per 100,000 people
2. New Mexico - 6,462.03 per 100,000 people
3. Louisiana - 6,408.22 per 100,000 people
4. Colorado - 6,090.76 per 100,000 people
5. South Carolina - 5,972.84 per 100,000 people
6. Arkansas - 5,898.75 per 100,000 people
7. Oklahoma - 5,869.82 per 100,000 people
8. Washington - 5,758.57 per 100,000 people
9. Tennessee - 5,658.30 per 100,000 people
10. Oregon - 5,609.89 per 100,000 people

Crime Rate by State 2024

I count 1, maybe 2 blue states. Try again?

DC, New Mexico, Colorado, Washington, Oregon.
Right, 1, maybe 2???

 

[mrjurrs]

DC, New Mexico, Colorado, Washington, Oregon.
Right, 1, maybe 2???

DC is not a state. WA is blue, CO and OR may be blue depending on your definition. How do you define blue states?

 

[Linc]

The only bad news is that the lip-progs from California will likely export their bankrupt political biases. The good news is fewer people in California.

MAGA.

Fewer people means fewer CDs (CA lost one from 53 to 52) meaning fewer federal $$$.
Most political novices don’t see CA moving to the right the last two terms.

 

[LoreD]

The state is going from a $97 billion surplus (thanks US taxpayers for all that free stimulus money!) to a $25 billion deficit in a single year.

This is what happens when your tax rates are so progressive that literally half of the state's income tax revenue is paid by 1% of the taxpayers. If the stock market goes down and they have a bad year, the state goes broke. And when they flee the state (as they are doing in droves) to places like TX and FL which have no personal income tax, it hurts the state even more.

The Dems who runs the state could widen the tax base, but that might cost them an election. So forget that.

Budget whiplash: California faces $25 billion deficit

California could see a budget deficit of $25 billion next year, a stark change from the unprecedented surpluses of the past two years.

calmatters.org

They were expecting this. They stashed a whole lot of money away for a rainy day.

After years of budget surpluses, California headed toward $22.5B deficit

On Tuesday, Gov. Newsom announced California likely won't collect enough money in taxes to pay for all of its obligations, leaving a $22.5 billion hole in its budget.

www.cbsnews.com

Newsom chose not to dip into the state's $35.6 billion savings account.

The deficit was not a surprise. Newsom and the state's budget writers have been signaling for well over a year that California was sailing into economic headwinds. The news on Tuesday was Newsom offering his first plan of what to do about it.

Instead, Newsom plans to delay some spending while shifting some expenses to other funding sources outside of the state's general fund. He has proposed $9.6 billion in cuts.