California revenue is up from a year ago. Unfortunately, California revenue is not up as much as expected, while spending is up way more than expected.

Please consider California Finances in November 2012 by state controller John Chiang.

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Mike Shedlock

Mike Shedlock

Mike Shedlock is a registered investment advisor representative for Sitka Pacific Capital Management.

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19 Comments So Far
ladyofthemanor Wrote: Dec 12, 2012 3:01 AM
There aren't enough conservatives in Calif. The liberals are taking over and waiting for their free stuff and a Fed bailout.
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BeekerD Wrote: Dec 11, 2012 6:22 PM
Jerry "MoonBeam" Brownnosesunions, needs to be feared and despised but that Socialist Whacko
'USELESS NEWSOME' that will follow him will be the one to Finish Off and GUT THE STATE after 'MoonBeam' sets the stage
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SpaceVegetable Wrote: Dec 11, 2012 1:54 PM
Wow, why would anyone stay there? Everyone knows that "temporary" tax hikes are never temporary to Democrats. I know because we've had temporary tax hikes here in MA for many, many years and are still waiting for tax rates to drop back to normal.
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True Conservative! Wrote: Dec 11, 2012 11:58 AM
Just another chapter in the unending story of leftist-run government failure!
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kenneth416 Wrote: Dec 11, 2012 11:34 AM
Governor Jerry Brown did not earn his nickname of Moonbeam by doing nothing. He actually believes that higher taxes is the answer to all of California's problems. Undoubtedly, he is counting on either running out the clock or the federal government to bail them out.
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Ste1021 Wrote: Dec 11, 2012 11:23 AM
Kalifornia formula for success: Penalize successful people so much that they leave the state. Keep filling the state up with the world's poorest, least educated people. Spending increases; tax revenue decreases. SUCCESS!
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Texas Chris Wrote: Dec 11, 2012 11:36 AM
It might work out in the long run for the rest of us if California slides off into the Pacific... All the moochers will have to learn to swim.
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ISignFred48 Wrote: Dec 11, 2012 9:07 AM
This is too complicated for liberals to understand. We need to explain this in second grade language. The only free cheese is in the mousetrap. Money from the government isn't exactly free; somebody will have to pay it back because the government gave you something that the government did not have. Someday our granchildren will hate all the liberals who have been stealing from them since before I was born. Hope they don't hate us too.
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Dan107 Wrote: Dec 11, 2012 10:51 AM
Is there a reason why you believe that liberals care that money from the government is not free?
Fred, you are projecting your good, successful fiscal policy views on liberals.
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Texas Chris Wrote: Dec 11, 2012 11:38 AM
Part of the problem is that WE don't hate OUR grandparents for letting things slip as far as they did. The progressives have controlled the history books, the education of us, and our kids, and one day our grand kids...

Hopefully, when it all collapses, everyone will see clearly that, as Fred brilliantly stated, the only free cheese was in the mousetrap.
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MoreFreedom Wrote: Dec 11, 2012 6:14 PM
Why not just say that when government goes beyond protecting our "life, liberty and pursuit of happiness", it's picking winners and losers at an expense to all of us. At that point, instead of protecting our liberty, it becomes criminal facilitating theft, and no longer protects our liberty.

Do they want to deal with a criminal government that steals from them for the politically connected, or one that's limited to protecting their liberty?

The more power the government has to pick winners and losers, the more power the rich and politically connected will have relative to the rest of us. Power, they'll use to steal from us.

E.G., Solyndra, owned by a billionaire, gave Obama about $100,000, and in return got $500 million of our money
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LOIS44 Wrote: Dec 11, 2012 8:43 AM
CA is NOT alone. It's NOT the state, it's the population believing the state is there as Mom & Pop to watch over them, pick them up when they fall, and give them goodies. Soon the goodies wagon will be empty, the wheels will fall off, and the teary eyed population will turn towards the federal government who can print money and never run out. They will smile again, using funds their great grand kids will get stuck paying, and not even give it a thought.
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Kurt114 Wrote: Dec 11, 2012 9:34 AM
Agreed. Obama won't let all those loyal socialist voters go without. It's for the kids, don't you know?
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Texas Chris Wrote: Dec 11, 2012 11:40 AM
He can only tax so much, he can only print so much, before the people revolt and the currency collapses.

Sometime I honestly believe that's his plan.
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Texas Chris Wrote: Dec 11, 2012 11:39 AM
California, Illinois, New York, New Jersey... All on the edge of bankruptcy.

I thank God daily that I'm in Texas.
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David3036 Wrote: Dec 11, 2012 4:17 AM
In the 1970s, California voters were fed up with property taxes going up and up. Home values were in the same type of steep climb as in the 2000s, before the bubble burst. Cities and counties were having a wonderful time spending all that windfall tax money.

Then voters passed Proposition 13, the Jarvis-Gann Initiative, limiting the growth of property taxes. Municipal and county governments and publice-employee unions cried foul, issuing dire warnings about public safety -- the same fear-mongering that is going on now.

Jerry Brown was governor then, and he nearly bankrupted the state by bailing out the cities and counties. Now he's governor agiain, and "local assistance" is by far the largest share of those budget numbers above.
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Texas Chris Wrote: Dec 11, 2012 11:42 AM
Two things drive property values up in California: federal ownership of land, and federal regulation on the use of privately owned land through environmental initiatives.

Odd how most problems can be traced back to the federal government...
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scott s. Wrote: Dec 11, 2012 2:34 PM
I would say the California Coastal Commission has a much bigger effect. It causes prices to rise along the ocean and that works its way inland.
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The Teleprompter Speaks Wrote: Dec 11, 2012 5:03 PM
There are a lot of local restrictions on development, too.
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