Commentary: California’s budget surplus has vanished and its economy is in danger. It can go one of two ways
The much-celebrated California boom is facing a harsh reality. Everything was looking good, based on enormous growth in capital gains in tech stocks and property, and some in Sacramento assumed the bounty would last — until it didn’t. The latest bad news is the evaporation of the state budget surplus that is now rapidly turning into a deficit that could run as high as $22 billion to $40 ...
by Joel Kotkin and Marshall Toplansky, Los Angeles Times
Jan 17, 2023
4 minutes
The much-celebrated California boom is facing a harsh reality.
Everything was looking good, based on enormous growth in capital gains in tech stocks and property, and some in Sacramento assumed the bounty would last — until it didn’t. The latest bad news is the evaporation of the state budget surplus that is now rapidly turning into a deficit that could run as high as $22 billion to $40 billion, particularly if there’s a recession.
But although there are dangers ahead, there’s no need to panic. This painful reality can be turned to our advantage and help us pivot our economy toward greater economic diversity and opportunity
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