Tuesday, July 16, 2024

Go Woke, Go Broke California’s Debt Hits $68 Billion

California, along with New York, Wisconsin and several other states could all be poster children for failure by woke. In every case you need to look no further than the Democratic leadership as the cause for the failure.

Prices in California are outrageously high for everything and so are the taxes. The state has suffered a massive loss in population as people and corporations flee to red states like Texas and Florida. Of course, when people and companies leave a state, they take their tax dollars with them, so the woke liberals have less money to waste.

California has long bragged about the fact that its economy was the fifth largest in the world, however now that economy is facing a $68 million budget deficit for the fiscal year 2024. More than double the $32 million it faced this year.

With prices so high, it makes borrowing money much more difficult for individuals and businesses. That means that homebuying has slowed drastically as has business expansion. Last winter there were several storms that had a negative effect on the state as well. For some reason state officials decided to give the citizens more time to pay their taxes and extended the deadline until November of this year. However, that meant that Newsome and his cronies had to come up with a budget this past summer without knowing how much tax revenue the state would generate. At that time, they estimated a $14.3 billion deficit.

As is the case with everything else, they didn’t get it right. The state officials badly misjudged the amount of revenue that would be available. Collections were lower by a staggering $26 billion, making up 38 percent of the deficit. The results were announced yesterday by Legislative Analyst Gabriel Petek.

According to Petek, while bad, he believes the state has options to address the shortfall. These include the use of cash reserves, one-time cuts in spending and changes to the way it funds education, options that it didn’t have in previous downturns.

Petek put it this way:

“The state remains in a good cash position, and that really wasn’t the case back at the start of the Great Recession. We don’t face the same kind of liquidity challenges that we had at that time, and so I would stop short of describing it as a crisis.”

Now I am not an economist, but I wouldn’t be raising a glass and downplaying a $68 billion deficit. Yes, I’m sure that compared to the Great Recession anything looks better, but things are not looking up for California.

The state is going to continue to lose the tax dollars from private citizens and corporate entities. With Democratic leadership at the helm, prices are not going to go down and conditions will continue to deteriorate.

Newsome and woke liberals have destroyed California, not satisfied he wanted to be President of the U.S. Thank God there is no chance of that. Meat puppet Joe is bad enough, imagine having a cognitive woke fool at the top that could contribute to the madness.