This wonderful video explains a big part of why California is going bankrupt with an estimated $25B budget deficit for the current fiscal year with revenue of roughly $83B.
2010-11 $20B Budget Shortfall
- $6.6 billion: Current budget year shortfall due to slow revenues and nearly $5 billion worth of federal and state court decisions that mandated spending on programs cut in the 09-10 budget.
- $12.3 billion: Projected shortfall for 2010-11 due to unfunded mandates and a still slow economy.
- $1 billion: Modest reserve.
I read this $20B shortfall relies on moving anther $5 to $6B into 2011-2012 so the actual amount we Californians are in the hole is over $25B.
What is amazing is here in CA we have:
- 9.75% sales tax in some counties like Los Angeles
- 10% income tax on top earners
Tax Rates by State
- very high property costs. The property tax on the average home in Santa Clara County is close to $10,000 a year.
- We have extra taxes on gasoline that is supposed to help build and maintain our roads. I paid $3.49 per gallon for 91 Octane (1994 Corvette) just the other day.
and yet the California government can't balance its budget!