Why is California Broke?

WHY IS CALIFORNIA BROKE?….The Haas Business school at Berkeley would like to dispel some myths about California:

  • Our business climate is fine. We are not losing jobs at a rate any different than the rest of the country.

  • State government is not bloated. On a per capita basis, the number of state employees is below average for large states.

  • We are not a high tax state. Overall state and local taxation in California is about average.

So why do we have a budget crisis? Because we pretended that the bubble economy would last forever and locked in higher spending.

Well, duh. I figured that out in about 30 minutes back in May. Still, I guess it’s nice to set the record straight on that other stuff.