California's deficit, lead by democratic leader Governor Newsom, is a disaster of epic proportions

California is facing a record $68 billion budget deficit, state officials announced Thursday

Possibility of facing a record of the largest deficit (68 billion) facing California is becoming more real. Due to miscalculated projections of the yearly budget, Newsom and team grossly miscalculated the budget and will be facing the largest deficit the state has faced. 

Probably doesn't help when you allow crime to run rampant, force businesses out, force residents to move to Texas, Arizona, Nevada and Florida while searching for more tax friendly states and less crime ridden areas. Also doesn't help when you spend like a drunken sailor that doesn't know how much he actually has to spend.   

Usually, when you spend massive amounts of money, everything becomes better, right? Well, how is California for most people living there? If CA was so great, why is the state experiencing the largest exodus the state has ever seen in recent years? 

Republicans warned Newsom that his massive spending would lead to a massive deficit. Did he listen? No, which is why his state is struggling and could be for the foreseeable future under Newsom's leadership. 

Maybe, if Newsom cared more for the citizens of the state who produce for the state instead of those whom take from the state, the state would be better off on helping those that need more. Maybe, if Newsom cared more about the state than gaining votes, the state would be better off today. Maybe, Newsom is the problem.

Good luck California.  

Thoughts Democrats? 

Thoughts Republicans? 

Calif has a large progressive population and is one of the more divere group of people in the USA so they arent going to be GOP Utah where they spend zero on education and are pro-business as a sole focus. 

Newsome is too progressive IMO but he was elected and thus they are represented by him. It isnt only the GOV who is the CEO of the state, their other political officials have a large part in what happens so he is not the only responsible party.

IMO the reason why they have a shortfall is they allow tons of props on ballots which  mess things up so regularly and they rank quite low on property taxes, their rate is smack in the middle and I would need to recall my memory but I seem to remember that Calif has tons of loopholes to keep valuations low so the real property tax rate is much lower than say my state. On a percentage basis Calif is ranked 16th of 51 and while their average valuation is the highest in the country they rank only 16th in total property taxes.

California is like its own country it is so large and diverse, it has never been easy to keep a balanced budget with all the crap going on there and it isnt only about the gov being a DEM or a GOP either.

 They thought they were running a surplus a couple years ago.......what happened?

Add this on top of the 20 billion that California borrowed from the Feds during the pandemic and has not repaid it back so guess who flips that bill....the employer. There is an added .3% each year when a State fails to pay back the Feds by way of a credit reduction through FUTA. We are entering our third year so an additional .9% is added to the first $7,000 in wages an employee makes to the employer so businesses can pay back a debt it had no say so in accumulating. State borrows knowing it cannot pay it back, then misappropriates the funds and just has the employer pay for it....comedy...We just went thorough this 10 years ago and it took 5 years for it to be paid back.

Completely asinine the decision making...and of course I am sure everyone remembers what California did with that money right? It misappropriated the funds and paid dead people. people in prisons and so many others...I even think Mickey Mouse gotta check....It's an unfortunate state of affairs out here in cali with this Newsom character

According to Wallethub, GOP Utah is listed as "low spending and strong school system" while California is ranked as "high spending weak school system".

https://wallethub.com/edu/e/states-with-the-best-schools/5335

California; 

• The highest individual income tax rate in the country – 13.3%
• The highest gasoline tax in the country
• A state corporate tax, which at 8.84%, is more punitive than all but two other states.
• Some of the steepest local sales tax in the nation
• State sales tax of 7.25% highest in the country
• Business tax climate gloomier in only two other states

U.S. News & World Report has ranked California as the most regulated state in the U.S. The Mercatus Center at George Mason University in Virginia says California is swamped with 396,000 regulatory restrictions, the most in the country.

https://www.pacificresearch.org/elon-musk-is-right-california-is-now-the-land-of-taxes-overregulation-and-litigation/

Random inane banter designed to be divisive instead of actually speaking to people in a discussion forum while also adding lame put downs and nicknames that serve no other purpose but to be snarky and troublesome …..

but WITHOUT the need to quote everything because my God it’s such a waste of space 

@UNIMAN

 Not sure you are familiar with the schemes of the west the last decade or so but Utah has fallen into the charter school to save money scheme trap like Arizona has. Utah in their public school system has pretty lousy results as does Arizona and both are near the bottom of what they pay teachers, the investment in technology and the overall per student investment. 

Charter schools are a way of segregating between the haves and have-nots and it divides the educational classes of students badly yet it saves the states money so they go with it. Charters require a great deal of involvement from the parents and in our case quite a distance issue going to and from schools. 

Down here many districts have open borders you can go to any school if they have opening and its just the responsibility of the parent to get the student there as there are no bus systems. So what this does is gives opportunity to those who can handle the extra time and cost and it makes it tougher for parents and students who cannot. Our kiddo went to a different district and we transported to and from every day, we did that for a defined demographic and economic diversification we were wanting..we sought square middle class with high rankings and high diversity and we found that. Then after elem school we went to a district formed college prep school all the way through. It meant more responsibility from parents and a tougher schedule for the kiddo but it worked out, the kiddo got a scholarship at ASU and entered college as a junior due to taking college classes in high school.

So the point is that the divide between those who have the means and the opportunity makes Utah and Arizona think that the charter system is better, well it CAN be better if the family/parent/student has the time and money to sacrifice and with a tougher class schedule. Basis is big down here, formed from an Intel exec and we know many kids that went there, one who is the same age as our kiddo is at Johns Hopkins studying right now.

Utah and Arizona have awful education systems for the masses and just because the cream of the crop families who are diligent have the opportunity funds and time put their kids in charters does not mean that the education system is good...I think charters are lousy, at least the district based college prep had the full school experience with all the classes and sports and facilities that every public student gets, most Utah charters are strip mall or single buildings without full facilities and full schedules.

wallstreet you’re response was much better than mine . Very well said and informative . Thank you for that . I learned something new .

@spockgato

 yours in theory is spot on btw...

Sounds like personal bias to me. According to Wallethub Arizona ranks 49th out of the 50 states and D.C. Utah ranks 12th. 

What I have found in my life experiences is parent participation is the key to a students success. No matter ethnicity. The kids I knew who had parents not involved suffered and those who had involved parents usually succeeded. Every once in awhile there were exceptions like overbearing parents and those who's Johnny could do no wrong. Cannot pick your parents. And, cannot pick your teachers either. Some were there for the paycheck, others were crackpots. That's life.

It's a double edge sword IMO. I went to public schools up to 9th grade. A diverse middle class community. All A's, honor society, school came easy. Then, to avoid a poor, crime ridden public high school I convinced my parents to shell out $550 a yr to go to a catholic school nearly 10 miles away. A lot of money back in the 70's. And we were not very religous or even catholic. Several of my honor society friends did the same. I fell flat on my face the first semester surrounded by doctors and top lawyers kids and all the other well to do kids. Never saw so much homework. It pushed me. Received a superior education and so did several not well to do individuals. There were several programs to help with titution for those not able to pay. Halfway house juveniles were sent to this catholic school too. Yet the majority were the well to do. Being surrounded by basically smarter folks increased my education and school disipline meant no screwing around. 

So I could have been tops in my public high school and not be as well educated, or as it turned out, struggle and forced to work harder at the private school and much better prepared for the real world.

No different than athletes who now attend academies to prepare for their future.

My observation is from experience, research and having exposure to both sides of the scenario. I live in AZ, kiddo went to school here I know neighbors and friends and doing research I know the ins and outs of charters, went to several open houses for charters over the years, I know families that went both routes so how could I have personal bias when I actually did it all? 

We have a past professional friend who lives in Utah and runs a charter, he started it up about ten years back and I know 100% what is going on and the precise details, I know what the parent and student requirement is I know what they teach and the book centric high memorization and repetition approach they have. Ive seen it all, Basis is the platinum example of charters down here and they have a very long queue for getting in, they have an interview process and application it is not at all reasonable and accessible for the average family with two working parents or someone that lives far from their building.

My neighbors have kids that are attending and are done with the local bussed public schools and as neighbors of course we have discussed the topic many times, I live in a middle class neighborhood in a decent part of town and we are lucky to have made it possible to navigate the public school system. There are many public schools that I would have intentionally avoided due to issues with drugs, crime and a lack of quality education and having lived on the east coast for a few years I also know the difference between public education there and education here and the difference in property tax rates, teacher pay, student class size, SAT and ACT prep approaches. My analysis is completely due to experience, research and understanding of all aspect of the education system..and I can 100% say that the public education system for average working families in Utah and Arizona is very very poor and the starting to mid salaries they pay teachers here is a joke for the education required and the cost of living and it is no wonder that there is a teacher shortage in many districts down here and why the quality of education, the results of students is very poor.

The issues with Calif are not just about funding, that is a totally separate topic but you had to reply to my Utah comment and I have to "educate" your lack of understanding and perspective because I have it and you do not.

My reply on Utah was nothing but facts backed up with a links to the facts. No over exagerations (GOP Utah where they spend zero on education)

Would like to think facts educate more than opinions. Sometimes not the case it seems.

Have a relative retired from Clark County NV schools and I lived out there myself for 10 years. Know the issues well.

The problem with California is typical over regulation, oversized government and people who expect government to solve all their problems.

Moving on......

Here's a little Saturday night cynicism that rings of truth.....

Socialism is the Fire department saving your house.

Capitalism is the insurance company declining your claim. 

Yeah who could have predicted that slashing health services and education could balance things out in Florida and Texas! I guess that’s the American way now!

@BigGame90

 Should be some good chances from 1:45-3:15 or so today. 

@Raiders22

Wow! 

SPY 464c in at 2.28 and out at 3.90 

QQQ 400c in at 2.23 and out at 3.29

Now switching up for the Q&A session and see how it goes  

SPYp 467 in at 271

QQQp 402 in at 2.18

Now in for the run for his talk. Up and away! 

Q&A time

@Raiders22

Trailing stops locked in still:

SPY 464c in at 2.28  at 5.75

QQQ 400c in at 2.23  at 4.75

Awesome run! 

 California Gov. Gavin Newsom and the nonpartisan Legislative Analyst’s Office over the state’s projected budget deficit took a new turn Tuesday, when the LAO announced a revised shortfall of $73 billion — $15 billion more than previously forecast, and significantly more than the $38 billion gap that Newsom has estimated.

 This might be a problem

Either Newsom and team are terrible at math, or they just straight up lie and deceive about the states Budget. 

Might have to cut some funding for the bullet train 

Wasn't Newsom bragging about a surplus a few years ago? Or was that just a lie to make him look good? 

Can anyone imagine what this guy would do as POTUS?? 

Maybe he'll take the same approach as crime...Just don't report the numbers and the crimes never happened! Brilliant! 

https://www.yahoo.com/news/california-budget-deficit-worse-anticipated-222103715.html

Why yes he did....

He said that California had a 97 billion dollar surplus which he failed to substantiate and when the dust settled it was actually a 25 billion dollar deficit....he didn't just say that the State had a surplus, but he bragged about it saying no other state in American history ever experienced a surplus that large.....this never made any sense because any tax paying business knew the truth because we are one of two States that has a credit reduction with the FEDS because our State borrowed some 20 billion from the FEDS during the pandemic to pay for unemployment....This fucker, Newsom, thought that he could treat that money as if it was a PPP loan....friggen douche...now every business has an exponential rate increase each year for its taxes until the businesses pay back the loan this guy borrowed...wonder why you might not be getting a raise from your employer in California, this could be the reason....we do somewhere in the neighborhood of 50M per year in payroll and I can tell you that this additional tax is a big burden...  

Let's not forget though that during that span he enacted new bills that he said the State could cover, like the free health care for immigrants, but in actuality it will further bankrupt the State.....

This guy is the biggest buffoon and god help us when he runs for presidency and wins...

Solution; 

The LAO listed several areas of one-time and temporary spending where cuts can be made, totaling nearly $16 billion. Categories of cuts include business and labor, criminal justice, education, health and human services, housing and homelessness, resources and environment and transportation.

Department of Finance director Joe Stephenshaw said in January one early action item would involve increasing the managed care organization tax by $1.5 billion to help fund a Medi-Cal expansion for undocumented immigrants. Health insurers pay the MCO tax.

https://www.sacbee.com/news/politics-government/capitol-alert/article285710851.html

So taxpayers you get cuts in criminal justice, education, transportation, health and human services, etc. Your health care cost go up with new tax, and......

immigrants get free health care. 

The only real business to invest in in California today is, "one way U-Haul"

@UNIMAN

@ABooksNightmare

@BigGame90