California Budget Recalled: The $24.3 Billion Budget Deficit

There are many reasons why California finds itself at the financial edge. We are a state that heavily depends on personal income and sales taxes that fluctuate wildly during good and bad times. California also finds itself grappling with the reality that there may be no other bubble to save itself from the current harsh reality. During the 1990s, we had massive wealth gains with the technology bubble with areas such as Silicon Valley. After the bust, state revenues dropped quickly but without skipping a beat, we had the real estate bubble to pick up right where it had left off. Two decades of massive bubbles. There may be no other big bubble in the near future to get us out of this mess easily. (more)