Friday, June 7, 2013

California Wake Up Call

California, the ninth-largest economy in the world, is a profoundly troubled state. It remains badly broken in many fundamental ways even as the national economy slowly but steadily emerges from the Great Recession and as cash from November’s voter-approved tax hikes pours into the state treasury.
The tax increases have, to be sure, provided short-term budgetary relief, even a multibillion-dollar surplus, after years of multibillion-dollar deficits that were papered over with phony economic assumptions, accounting gimmicks, massive borrowing and raids on the treasuries of school districts and other local governments. Indeed, state Controller John Chiang says that April was the first month in six years in which the state was able to pay its bills without raiding internal funds.

http://spectator.org/archives/2013/06/07/fixing-california-is-the-dream 

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