Plenty of red ink greeting California lawmakers in Sacramento, as the legislative session gets started.
But relying on rich people to pay the majority of the state’s taxes from their investment income is not working so well, when federal and state mandates are hurting businesses and stifling investment. While Wall Street did see some strong gains in November and December 2023, those barely offset a disastrous 3 year period for investors under Biden Administration policies that attacked energy companies, car makers, and small businesses during the Covid-19 lockdowns.
So California finds itself with a growing budget deficit caused by government overspending, and a drop in tax revenues.
This more than 60 billion dollar proposed deficit comes just two years after the State of California had a 99 billion dollar budget surplus. All of that surplus has been squandered by elected officials in Sacramento.
The latest boondoggle is the plan to spend upwards of 3 billion dollars a year to provide health insurance for every illegal alien in California.
A Republic Assemblyman from the Inland Empire, is trying to block funding for this health care for illegals, but its has no chance of getting any support in Sacramento which is controlled by Democrats who support spending California tax dollars on programs for illegal aliens.
U-S currency, going up in orange flames.
Photo from Alpha Media Portland OR