Its Department of Finance recently estimated that the Golden State could face a $54 billion shortfall in the fiscal year beginning July 1, which surely must be the largest deficit any state has ever accumulated, surpassing the $40 billion hole that nearly swallowed Sacramento in 2008.
The top 1 percent of California earners now account for about 23 percent of the state's adjusted gross income but pay 46 percent of the income tax-nearly $50 billion last year, all of which came from an estimated 15,000 households.
California added new taxes, bumping up the rate for those earning more than $250,000 a year and increasing the state sales tax.
Last year, the Public Policy Institute of California estimated that, even in a moderate downturn, the state would face revenue shortfalls averaging more than $22 billion a year for the next four years-totaling more than $90 billion.
Under former governor Jerry Brown, the state started accumulating a rainy-day fund, now amounting to $17 billion, but even that cushion won't last long in California.
In 2004 the state floated $15 billion in bonds to close deficit gaps precipitated by the bursting of the dotcom stock bubble.
Earlier this year, when California was flush with revenues and spending liberally, Newsom boasted that his state was "America's coming attraction." Let's hope not.
https://www.city-journal.org/california-record-breaking-deficit
The top 1 percent of California earners now account for about 23 percent of the state's adjusted gross income but pay 46 percent of the income tax-nearly $50 billion last year, all of which came from an estimated 15,000 households.
California added new taxes, bumping up the rate for those earning more than $250,000 a year and increasing the state sales tax.
Last year, the Public Policy Institute of California estimated that, even in a moderate downturn, the state would face revenue shortfalls averaging more than $22 billion a year for the next four years-totaling more than $90 billion.
Under former governor Jerry Brown, the state started accumulating a rainy-day fund, now amounting to $17 billion, but even that cushion won't last long in California.
In 2004 the state floated $15 billion in bonds to close deficit gaps precipitated by the bursting of the dotcom stock bubble.
Earlier this year, when California was flush with revenues and spending liberally, Newsom boasted that his state was "America's coming attraction." Let's hope not.
https://www.city-journal.org/california-record-breaking-deficit
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