Two amusing things…

[Mick]

1. California tax revenue has increased every single year for the past four consecutive years. California actually overproduced their projected tax income for this year.

2. The Democrats have fully, totally and completely built the budget, including all expenses and revenues without any real input from Republicans.

The 2025 California state budget deficit will be approximately $18 billion. The budget deficit will increase to $35 billion next fiscal year.

Washington’s state budget deficit is $16 billion, they are second most, followed by New York’s budget deficit at $10 billion, then Illinois’ state budget deficit at $3.2 billion.

Hmm. Interesting. What does CA, WA, NY and IL have in common?

Texas, incidentally, had a $23.8 billion surplus this past year and a $32.7 billion surplus the year before. One wonders why the difference…

I asked the AI tools. They say (basically):

1. High service expectations
2. High cost of living
3. Big long-term obligations like pensions and retiree health care with underfunded pensions
4. COVID and its aftermath
5. Migration trends; e.g., outmigration of high earners, inmigration of low producers.
6. Very high dependence on volatile tax structures; e.g., income taxes from the wealthy and capital gains.
7. Oversized commitments on K-12 and higher ed, Medi-Cal expansions, homeless and housing intiatives, climate & infrastructure.
8. Public transit commitments
9. Revenue pressure from remote workers
10. Washington doesn’t have a state income tax.
11. Postponed structural fixes in many cases.
12. Federal funding shortfalls and tax changes (like capping SALT deductions)
13. Cooling tech sector, cooling hollywood sector, cooling finance sector
14. Inflation
15. Federal tariff impacts disrupted trade.
16. Decline in sales, real estate, excise and gas taxes due to economic cooling and shift to fuel efficient vehicles.
17. Projects that accomplish nothing (High speed rail).
18. Actual budget cuts don’t get made.

To be fair, CA intends to cut two climate programs, housing programs, welfare programs and government personnel programs. They are also delaying housing funds for homeless and mentally ill people, further transit funding and programs for building and improving kindergarten facilities for schools.

And speaking of schools, you’ll be heartened to know that our local public school has purchased seven (7) brand new tennis courts.

[Author]

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