California budget nightmare – in 1970 California took in 28 percent of state revenues from personal income taxes. Today, the state pulls in 52 percent

The problems for the California state budget are deep and significant and will provide fodder for another politically charged year. California faces a $19 billion budget deficit brought on by falling fund revenues and expenses that still reflect a time of better days. The Governor last week announced that 200,000 state employees would see their wages cut to the minimum of $7.25 (that is, for the exception of practically every group with special benefits so the number dwindles to a handful). The act in itself is merely a political move since pay will be retroactive once a budget is enacted. Yet this is how the gimmicks are played in California. There was also a recent focus on state benefit debit cards being used at strip clubs and casinos although this only reflected a tiny fraction, less than 1 percent of 1 percent of 1 percent this is how the state handles priorities and sensationalizes pennies to ignore the dollars. (more)

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