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.