The American Spectator : Our Very Own Greece

Text Size

Our Very Own Greece

By Ross Kaminsky on 5.17.12 @ 6:09AM

The major difference is that California has an even bigger budget deficit than its Balkan cousin.

(Page 2 of 2)

At 11 percent, California has the third highest unemployment rate in the nation, behind only Nevada (12 percent) and Rhode Island (11.1 percent). The budget is a mess, and Governor Brown is proposing to address the problem with a method — raising taxes — that has already been tried and failed (unlike in New Jersey, where Republican Governor Chris Christie has balanced its budget without raising taxes). As the Wall Street Journal noted, California’s tax receipts are more than 20 percent below prior projections while “state tax collections were up nationally by 8.9% last year…and this year revenues are up by double digits in many states.” It’s no wonder the Navajo Nation has a higher bond rating than the once-great state of California.

So JPMorgan makes a $2 billion mistake — less than 7 percent of their 2011 earnings — with their own money, and senators are calling for hearings. The California’s governor’s office raised its 2012 budget deficit projections — namely their overspending of public money — almost 50 percent, from $9.2 billion to $16 billion, an error of almost eight percent of the state’s total budget, in four months, yet those same members of Congress remain as silent as a Trappist monk.

The California budget mess is playing out in the news today. It will be a difficult fight for economic rationality in a state that has largely accepted, to quote Arthur Brooks, European-style “learned helplessness” instead of the historically American goal of “earned success.”

If you enjoy this movie, take heart, there will soon be a sequel: Illinois’ state budget website says that “Illinois faces a budget shortfall of more than $11 billion… Spending growth consistently exceeds revenue growth [and it is] getting worse each year.”

Page: < 12

About the Author

Ross Kaminsky is a self-employed trader and investor and is a senior fellow of the Heartland Institute. He is the host of The Ross Kaminsky Show on Denver’s NewsRadio 850 KOA at 11 AM on most Sundays. You can reach Ross by e-mail at rossputin(at)rossputin(dot)com.

Letter to the Editor View all comments (209) | Leave a comment Leave a comment

Jack in Wi.| 5.17.12 @ 6:19AM

For once I agree with Ross here. It is a very well written piece. California is a sinkhole of taxes, unions, and waste. I am so glad the my governor Scott Walker is trying to fix our problems by cutting spending and getting the unions out of the business of running the state. I sure hope he survives this recall. It looks good now. But who can tell for sure, in this state.

Paul 52| 5.17.12 @ 12:28PM

California, New York, Massachusetts, Germany and France are first world places.
They produce more than enough money to take care of themselves.

South Carolina, Kentucky, Alabama, Greece and Portugal are second world places.
Absent aid from first world places, they are in big trouble.

The main difference between Europe and its Euro, and the US and its dollar, is that in the US a strong central government annually takes money from our first world states and redistributes it to our second world states.

If the Euro had been set up accordingly, its present issues wouldn't be occurring. Better it hadn't been set up.

But if the US were like Europe, California would be fine.

And this column would be making fun of South Carolina, Kentucky and Alabama. These are the true analogies to Greece.

DCA| 5.17.12 @ 12:49PM

It must be fun to be a socialist ass--you never, ever have to bother with facts, you just vomit up what you think, and expect people to bow before you because...well, never mind.
Ask any CEO where they'd prefer to do business, SC, AL, or CA...oh wait, that's been done, CA is #50. And how many auto manufacturing plants have opened in CA in the last 15 years? Compare that to AL or SC, idiot. Aren't those the "good jobs" leftist monkeys like you profess to want more of? Oh, wait again, they aren't unionized jobs so they don't count. Got it.
The federal government no more "supports" SC or AL than it "supports" any other state. It is far too large and imposes so many costs/mandates on states, they'd be much, much better off if it shrank by 90%. But only folks in SC and AL and other prosperous states like it would want that, you CA, NY, IL welfare addicts wouldn't stand for it. And finally, ask yourself, who but the feds would try to force the taxpayers of SC and AL to bail out CA and IL? Certainly the citizens of CA and IL, stupid, disarmed, socialist thumbsuckers couldn't do it themselves.
Go ahead living in your bubble--when the productive states secede and leave behind the United Socialist States, we'll see very quickly which portion of the former nation prospers.

Paul 52| 5.17.12 @ 1:36PM

Actually, the FACT is that California, NY & Mass get back about .79 cents for every $1.00 they send to DC.

South Carolina, Kentucky and Alabama get back about $1.40 - $1.70 for every $1.00 they send in.

http://www.infoplease.com/ipa/A0923084.html

You shouldn't rant about facts when you don't have any. And you shouldn't call anyone an ass when yours is totally exposed to the wind.

DCA| 5.17.12 @ 2:35PM

Well, if it's on a website, it must be true, right? How are those terms ("send in") and ("get back") defined? Don't you think that a quick Google search could turn up a variety of websites that pick this statistical garbage apart (and, in fact, it took me about 10 seconds to do that).
As usual with socialist slaves like you, you miss or willfully ignore the points I made.
The BMW plant in Spartanburg, SC isn't a statistic. It's a fact. Likewise the Mercedes plant in Tuscaloosa, AL. And the Kia plant in Georgia, the Honda plant in Kentucky, the Nissan plant in Tennessee, etc. etc. What new jobs that don't involve internet self-pleasuring has CA created or attracted in the last decade?
The fact is that the federal government, regardless of your cool charts, is too big, spends too much, and most southern and western states (east of the Sierra Nevada) would be more than happy to have the feds out--whatever some stooge like you says these states "get", they are burdened far more, and their citizens burdened far more, than whatever they "get" is worth. Feel free to take what you would call the "giver" states of CA, IL, NY and all of New England, and fu*king secede, as others on this site have suggested--the rest of the country would be thrilled to be rid of those socialist backwaters. But you wouldn't advocate that, right, because you can't stop the totalitarian impulse to rule over others and turn those who don't share your vile ideology into slaves. Good luck, bring ammo because you'll need it.

Kizar Sozay| 5.17.12 @ 4:59PM

"What new jobs that don't involve internet self-pleasuring has CA created or attracted in the last decade?"

Good one. I suppose you have a chart to prove it, too.

Andre Kenji| 5.17.12 @ 10:49PM

California may be a sinkhole, but it´s not Greece. For instance, most Latin American(And several African) countries have commodities to export, and several of these countries have industries.

Greece does not have these options. As the cliche says, Greece is a Banana Republic without the bananas. California may have all kinds of problems, but they have a strong agricultural and industrial sector.

That´s a poor comparison, frankly.

Charles Manson Reilly| 5.19.12 @ 4:50AM

You're right. It's not Greece. It's becoming something more akin to Europe circa 1500. The middle class is fleeing, and what remains is a 2.5 class society.

The upper class/nobility - consisting of politicians, Hollywood, Baby Boomers who struck it rich - and now want everyone else impovrished, and people with inherited wealth.

The atrophied middle class will contain the government drones and public safety employees - (the knights and court staff)

...and at the bottom a swollen mass of illegal, 3rd world peasants/surfs.

Many of the "nobility" will eventually reject their masturbatory obsession with "diversity" once the private sector middle class is completely broken. Then our self-congratulatory betters will only want as many Central American peasants as their lawn/food/cleaning needs require.

Herculean| 5.18.12 @ 12:09AM

DCA: Can you refute Paul 52's comment without the vitriol and name-calling? Do you even know what the definition of socialism is?

gary| 5.17.12 @ 3:26PM

To Paul52. Unless I am mis-reading this you just made the case for DCA. CA looses 21% of all the money sent to the FED vs SC gains 40%. Using your math if CA stopped giving any money to the FED we would save 21%.

Thomas Paine| 5.17.12 @ 5:28PM

One thing people like Paul 52 leave out -- if you accept the "Blue States subsidize the Red States" math, ignore the impact of military bases, etc -- is WHY.

I'll submit this: THE PROGRESSIVITY IN FEDERAL TAX RATES PUMMELS RESIDENTS OF HIGH-COST BLUE STATES TO THE BENEFIT OF RED STATES.

After all, the Federal TAXES on equivalent incomes in "First World" (have you been here?) California and "Second World" (have you been there?) South Carolina are THE SAME.

What's different is the Median Household Incomes, California and Texas, in 2009, for a household with 2 kids filing jointly:

California = $58,931 (22% higher!)
Texas = $48,259

Standard deductions:
$11,400 + 950 x 2 = $13,300

Taxable income:
California = $45,631
Texas = $34,959

Tax:
California = $6010 (36% higher!)
Texas = $4,409

NOW ... LET'S LOOK AT COST OF LIVING. From Missouri's COL website, the index #'s:

California = 131.12 (46% higher!)
Texas = 90.69

In other words, the PURCHASING POWER -- adjusting Texas' Median Household Income to account for the Cost of Living, would be this:

California = $58,931 (15% LOWER)
Texas = $69,773 (what that would be in CA)

GET IT??? The "Blue States" are IDIOTS who advocate bigger government, drive up their Cost of Living, live LESS WELL as a result, and yet PAY HIGHER TAXES.

In the words of Enrico Fermi: Bwaaaahahaha!

What a bunch of dupes....

Here's the Cost of Living map ... SPOT THE BLUE STATES:
http://www.missourieconomy.org.....1_map2.jpg

Big Government STINKS for the People.

Russ in OR| 5.17.12 @ 3:49PM

Your 'facts' and 'stats' about federal spending include military bases and defense contractors. Military bases are placed where they are for a variety of reasons, including climate for training and population in the case of missiles and bombers.

Defense contractors are free to locate where they wish (Boeing notwithstanding). When the military buys a plane from an aerospace company in, say, Georgia, only a dolt would count that money as aid to Georgia.

If you just count those on the teat, you'll be hard pressed to find a state that surpasses California. So California, feel free to have 21% of the nations' welfare cases. Go ahead and turn the entire state into a 'sanctuary state' as most of the liberal cities have done. Just don't expect us to bail you out!

Paul 52| 5.17.12 @ 4:03PM

You are mis reading. If CA got back what it puts in (see my reply to Russ in OR) it wouldn't have a deficit, indeed it could cut its state taxes considerably.

KevinO| 5.17.12 @ 4:20PM

California suffers from two things - a free spending Federal Government, and lock the democratic party has on state national offices.

If the size of the Federal Government was reduced, then more money could stay in California. As long as the voters in California's Congressional and Presidential races are strongly in the democratic category, neither party will perceive any political gains to be made by sending significantly more money back to the state.

Russ in OR| 5.17.12 @ 5:12PM

That's not how it works. California residents get to pay for the costs of the nation's defense just like the rest of us.

They don't assign military bases and defense contractors to states on the basis of population or taxes assessed. Here's an example from the state I was assigned to: North Dakota has two Air Force bases with a large deployment of bombers and ICBMs (this may have changed somewhat since I left the AF). These are based in ND due in part to its extremely low population. Therefore, ND would 'receive' far more in federal spending than the 25 residents of the state pay in federal taxes.

Besides, the CA legislature would NEVER cut its state taxes even by a penny. They would just blow it on something else such as the monorail to nowhere.

Cicero| 5.17.12 @ 10:56PM

The state of CA does not pay this money to the federal government, it is the individual tax payers that pays to the federal government. It is to these individuals who would be reimbursed not the state of CA. CA would still be in a deficit. CA could then raise state taxes to confiscate these dollars from the individual to reduce the deficit but then that would induce more residents to relocate out of state as the state tax burden would increase greatly relative to the tax burden of other states.

Larry| 5.18.12 @ 2:24AM

In other words, Paul 52, you want the Federal taxpayers in California to bail out their profligate state government. That is a real laugh, because if California "got back" $1 for every $1 in tax they pay, it wouldn't be reducing the deficit; it would be paying for more nonsense from the runaway free-spenders in the California Legislature.

Your evidence has more holes than swiss cheese, too.

old white guy| 5.18.12 @ 7:17AM

if they got back what they put in they would still have the same problem because socialists will not make any effort to stop spending other peoples money. it does not take alot of research to see what has happened worldwide with socialism.

Soquel Creek | 5.17.12 @ 9:23PM

Paul52, you're absolutely correct. This is the direct outcome from having an income-progressive income tax, championed by the Left.

You see, California, New York, and Massachusetts are "rich" states and therefore MUST pay a higher rates. It's their "fair share" after all, as our esteemed President would insist. Never mind that income is not measured in Purchasing Power Parity (PPP) for tax purposes. A $100,000 income in San Francisco, CA is equivalent to $57,000 income in Austin, TX based on similar lifestyles--although there are more taxes federal taxes (and state too!) due on a $100,000 income.

Cashin| 5.18.12 @ 5:33PM

Bravo good sir.

Steve from Wisconsin| 5.17.12 @ 10:53PM

Paul 52: Keep trying to put a happy face on their problems if you want, but California has been on a terrible path for a long time, all the while telling the rest of us that they are enlightened, and we're not very bright. I can see them in D.C. soon, with a tin cup in hand, and it will be a pretty sad sight!

Gary| 5.17.12 @ 3:29PM

I live in CA and it is a workers paradise if your a GOVT UNION worker. Unions are great except GOVT unions who thru corupt Pols steal tax payors blindly and we as most taxpayors have no recourse.

Mr. Mojo| 5.17.12 @ 5:12PM

Absolutely. Politicians use taxpayer money to buy union votes. When you factor in the 90% pensions those votes must cost taxpayers thousands or even tens of thousands of dollars each.

Soquel Creek | 5.17.12 @ 9:25PM

Who are the biggest spenders in California politics? Where do they get their money?

CHART: The 15 Biggest Spenders in California Politics
http://www.twitpic.com/75tc0v/full

Who is bankrolling Governor Brown's tax hike initiative?

CHART: The Big Government and Union Special Interests Bankrolling Governor Brown's Tax Hike
http://www.twitpic.com/9gi4e1/full

JohnR22| 5.17.12 @ 3:48PM

Even if the formerly successful blue states like CA were allowed to keep all of the funds they transfer to some of the red states you cite, it wouldn't come CLOSE to resolving CA's shortfalls.

And guess what would happen if those red states lost the subsidies? Not much I'll bet; they would trim spending accordingly...like the Irish just got done doing.

The red states are functional and would still be functional without the subsidies. CA is NOT functional and would not be functional if they kept the funds. CA is the analogy to Greece.

Paul 52| 5.17.12 @ 4:06PM

Well, look at the author's numbers. CA's GDP is 1.9 Trillion. CA's budget gap is 16 Billion, which is about 8/10ths of 1% of its GDP.

Since the Fed takes about 16% in taxes, that's $300 Billion from CA. Since CA's return on its taxes to the Fed is 79%, it sends about $60 Billion MORE to the Fed (for distribution to SC, Alabama, Kentucky) than it gets back.

That $60 Billion lost is far greater than the $16 Billion budget gap.

You folks would do so much better if you dealt in facts.

Really.

Butch| 5.17.12 @ 6:27PM

I'm sure all of those states--and numerous more--would be happy to send CA their individual federal government recipients to even the score for CA. Want 'em?

Martin Owens | 5.17.12 @ 6:28PM

It's not like there's 1.8 trillion lying around, though!
Percentage of GDP is a number. It has nothing to do with where the tax revenue comes from, which is the taxpayers.

But the comment about CA getting less " back" from the Feds than it pays , reveals the central misconception of liberal tax thinking. Taxes are not an investment program. They are the overhead of running our society They are not supposed to be a profit center.

Unless something for nothing is the guiding philosophy.

Jim| 5.17.12 @ 6:53PM

You liberals sure do believe in the zero sum game. That being the case, why do tax revenues fall when tax rates go up and rise when tax rates drop (ala Ronald Reagan?) THOSE are the facts not your uneducated economic "knowledge."

Larry| 5.18.12 @ 2:32AM

Why should California "get back" anything from the Federal government? Your assumptions are seriously flawed, because you are assuming that (1) money that the California Federal taxpayer should "get back" would be money that the State of California should actually receive - that is only true part of the time, but if the Federal government simply spent less money, period, and took less in tax from California taxpayers, that would be to the taxpayer's benefit, not the State; (2) that California would use the Federal money in lieu of state dollars to run otherwise bogus and wasteful programs, instead of simply spending that Federal money AND THE SAME state taxpayer money on wasteful programs.

This idea of a $1 to $1 dollar ratio, that states should "get back" from the Federal government, is totally bogus, because the spending decisions made in Washington, D.C. are influenced by a whole host of factors, not just whose Congressman greased whose lobbyist's palm. The Federal government needs to spend less, period. And so does California. Your assumption that if the Federal government spent more in California that benighted state's budget problems would be solved is baloney.

Skippy| 5.17.12 @ 8:39PM

Actually, you should be careful to check yours. Sure, the states you mentioned get back more from the federal government than they pay in taxes but so do Hawaii and Virginia. Shall we make fun of those states as second world? The suburbs of DC are doing that poorly, are they? The real flaw in your argument comes when you look at the actual local tax burden and rankings amongst the states. California ranks 6th in the nation in state and local tax burden yet their budgets are performing terribly compared to most other states, Illinois excepted. And it's not as if Californians are even getting their money's worth. Their public school system is quite poor:

http://nces.ed.gov/nationsreportcard/states/

If it weren't for the constant importation of talented workers from outside of the state much of its high tech economy would have already dissipated. In fact, much of it already is, social media bubble aside.

The fact is that local California spending policies are bankrupting the state and that has nothing to do with their federal tax burden.

And if you truly believe that California would be just fine if our system perfectly mimicked Europe's, then you need to think again. History has proven that Greece blows up fiscally about every 20-30 years. In the past they would just devalue the Drachma and life would go on. Now, because they could borrow money based on the credit of the Germans --what genius allowed them to do that?!-- they were able to borrow oh so much more at artificially suppressed rates than they could before. If we followed a similar model in the US, sure California would be allowed to keep the money that would otherwise go to the federal government, but that wouldn't solve anything. California has demonstrated that it cannot balance a budget even with the 6th highest local tax burden in the nation. Do you honestly believe that if they had to take on the responsibilities of a nation the situation would be any better? No, Cali would be the same basket case it was before except we'd be talking about Texas imposing austerity upon the golden state in exchange for more bailouts. As it stands we may still get to that point...

Soquel Creek | 5.17.12 @ 9:29PM

Speaking of educational performance, results just came out for the nation 8th-grade science assessment.

Thank goodness for Washington, D.C. schools and rural Mississippi! Otherwise, California would have tied for last place with Alabama.
http://www.twitpic.com/9jvirj/full

It's kind of strange, though. DC has some of the highest spending per student in the nation yet delivers a SOLID last place finish.

Charles Manson Reilly| 5.19.12 @ 6:21AM

LA USD has a nearly 60% drop out rate. That billion+ they recently spent on two new schools will surely help. I can't believe the union didn't demand they earmark that cash for the pension beast, but bonds were floated, and without a giant over-budget construction project, the administrators wouldn't be able to line their pockets. Meanwhile, LAUSD had to close an elementary school because of rampant child molestation, and cases in other schools have been reported. The teacher who was topping cookies with his "special sauce", which he produced at his desk during class, was paid 40k to resign. He retains his lifetime healthcare and pension too. What a wonderful utopia.

Larry| 5.18.12 @ 2:40AM

I find several things funny about this analysis. First, Paul 52's characterization of states as "first world" versus "second world." He wouldn't know the difference between those categories if they bit him in the butt. Second, the three states in question used to be blue states back in the 50s and 60s, when LBJ started his Great Society agenda. If they actually are in big trouble, it was Democrat socialists who started it - just like in Greece and Portugal.

But I actually think that those three states are nothing remotely like "second world" places, having visited them all at several points in my life.

Rico54| 5.18.12 @ 3:47AM

I love guys like you Paul. I am beginning to see, with the continuing saga of a bankrupt California; what amounts to the "Ugly Californian." Against your pacifist proclivities the Defense Dept contributes more to CA than it does any other state. Such is the same with HHS, Labor and Interior. Thats just four of many and I have yet to mention Homeland Security. Nevertheless please do keep looking down your long condescending nose at the rest of us while whatever industry your state has left flees elsewhere. I can't wait for the day you guy's show up, in all of your misplaced pride, sporting a tin cup.

Alan Brooks| 5.17.12 @ 6:07PM

Reagan was a good president, but a lesser governor of California-- the decline began starting in '67, which coincided with the very start of his watch.

Alan Brooks| 5.17.12 @ 6:10PM

should read:
Reagan was a good president, but a lesser governor of California-- the decline began in '67, which coincided with the very start of his watch.

After all, Carter rightly gets blamed for the cock-ups of his administration; difference is, Reagan learned; Carter did not.

Soquel Creek | 5.17.12 @ 9:31PM

You should really read the writings of demographer Joel Kotkin, a self-proclaimed "Truman Democrat"

"The Golden State’s War on Itself: How politicians turned the California Dream into a nightmare"
http://www.city-journal.org/20.....onomy.html

Mr. Kotkin goes into great detail on how California arrived in its current situation.

Larry| 5.18.12 @ 2:33AM

Ah! My old friend Alan Brooks, once again spreading lies about Ronald Reagan as governor! You are a charlatan when it comes to history, my friend. Better you stick to telling jokes.

Whitey Ford| 5.18.12 @ 5:59PM

I thoroughly enjoy watching useful idiots come to the realization that socialism is a big lie. CA is following Greece right down the toilet. Of course this is what B. Hussein McDowngrade wants for America. Mmmmmm mmmmmm mmmmmm

oldfart| 5.17.12 @ 6:32AM

Can't we make an exception for Taxafornia? Allow them to go their own way. I read that U-Haul is having to pay drives to move equipment TO Taxafornia because more people are moving out of the state and moving in for the first time in recorded history.

Jack in Wi.| 5.17.12 @ 6:43AM

Lets let them seceed. then they can be like Greece and Iceland and just ot pay their debts. They and he rest of the country would be better off. In fact we could kick out, New England, New York City, New Jersey, Deleware , Maryland, Washington DC. Northern Virginia, Miami, New Orleans, Seattle, and Chicago. In fact we could keep most of California but throw out LA and San Francisco. This country would be a better place and they might be happier, as well.

oldfart| 5.17.12 @ 6:54AM

One point - all the Northern Counties of CA (Bay area north) be allowed to form their own state. Everything South of the Bay give back to Mexico - no more undocumented citizens in LA.
Then the northern counties can cut off the water to LA - let them get their water from Sonora and Baja.
I would also like to see how far the 'greenies' get with the new Mexican Government and the defacto government of the drug lords.
That would be justice.
Am I being too cruel? NOT

Von Mises Jr| 5.17.12 @ 8:06AM

Perfect. We get rid of Hollywierd as a bonus. And Charlie sheen and Sean Penn will have easy acces to dope.

Seek| 5.17.12 @ 1:05PM

Only someone stupid could post something like this.

Poppakap| 5.17.12 @ 3:22PM

..and only someone without a sense of humor would write what you did.

John Navratil| 5.17.12 @ 9:32AM

Could we leave the Pepperdine campus at Malibu. Conservative kids, beautiful setting. We could still get there by boat!

LiveFreeOrDie| 5.17.12 @ 10:20AM

Hold on there! Your line is way too far north. Orange and San Diego counties are conservative and arguably the nicest places in southern California!

W| 5.17.12 @ 10:23AM

We may have to have another Mexican War this time to force Mexico to take back California.

Von Mises Jr| 5.17.12 @ 10:49AM

You're on a roll today, W.

W| 5.17.12 @ 11:15AM

Von
We need a sense of humor dealing with these lefties.
I don't know why Mexico would want California. How do you say Governor Moonbeam in Spanish? Or as Obama would ask, how do you say it in Mexican?

Von Mises Jr| 5.17.12 @ 1:11PM

"Luna de Luna"

Snickers| 5.18.12 @ 12:16AM

When I was young & living in the Bay Area, I felt as you do: separate Norcal from Socal. Now I believe that a better political divide would be to have East & West California. Make the eastern boundary of WestCal a line that runs 50 miles inland from the Pacific Ocean; from the Oregon border to Mexico. This setup would have the effect of keeping the liberal loons and earthquakes on the coast, while most of the agriculture and water would be in Eastern Calif.

Dmac | 5.17.12 @ 3:39PM

We don't want any state to secede. Once that starts it would have a domino affect. First, get all the non-citizens out. California is a perfect example of what happen when an area is overun with un-educated illegal immigrants who drain a society of it's assets. Since we know California's population is near 40% illegal aliens think of how many schools can be shut down, how much less will be spent on social programs, hospitals and healthcare. Now, elect a conservative assembly and see how fast California could turn it around. If we sit still and don't start having massive depotations and soon we'll see this happening all over the southwestern United States. It's our country and California is part of it. Let's get the illegals out and soon!

Charles Manson Reilly| 5.19.12 @ 6:30AM

Urban California's "enlightened" citizenry share more beliefs with Karl Marx than George Washington. The tipping point was passed long ago. Dumbed down by 50 years of marshmallow Marxism, they are children in adult's bodies. I've had a few stay at my house. Beyond their job, and perhaps knowing how to run a washing machine or vacuum, they are completely helpless. When they learn I do my own plumbing, electrical, carpentry, food production, etc they look at me as though I was dropped here from outer space.

JohnR22| 5.17.12 @ 3:52PM

I'm surprised there hasn't been some discussion about bifurcating the country. Not that it would be possible or even advisable, but given the extraordinary differences in the cultures of the dark blue states and the dark red states...neatly separated by geographical region....should have some people thinking that it might be a good idea to split the country.

Or...gee...we could just do what the founding fathers intended and shift power from the Feds to the States. Let each state do it their way and stop trying to force one-size-fits-all solutions onto a country that has major cultural differences. But....that would hamper the building of the socialist utopia which requires ALL power and wealth to be concentrated in the hands of a tiny, unaccountable Leftist elite.

Dmac | 5.17.12 @ 4:51PM

Very well put John, and full of common sense. I might add it would be nice to see some other part of the country or city start producing and making telveision shows that have a more central moral character to them other than the filth that hollywood keeps giving us.

DRA2010| 5.18.12 @ 9:16AM

"State's Rights"? Yes, we tried that once - as a result, the mobs from all the Northern cities came down and burned Atlanta, Savannah, and Richmond (and all towns and farms along the way) to the ground (not to mention killing most of the men in our family). No thanks - we'd just as soon not have to go through THAT again!

Bill Hussein O'Stalin| 5.17.12 @ 6:45AM

If Municipal bankruptcies are allowed under Chapter 9 for states, many public sector union retirees will see their pensions handed over to the federal government and they will be reduced by about 66%.

That's the only way out for many of these states and since they are run by Democrats they will most likely do it since there is no other way.

Jack in Wi.| 5.17.12 @ 7:09AM

That is a very good point Hussain. Let them go bankrupt and screw the lavious pension plans. No one can defend them on an actuarial or moral basis.

DG in GA| 5.17.12 @ 11:05AM

Lavious? Did you mean lavish, or is that a new word?

BobS| 5.17.12 @ 9:10AM

Yes, but then the taxpayers in the fiscally responsible states get to pay for the [reduced] pensions, rather than the taxpayers in the irresponsible states.

Bill Hussein O'Stalin| 5.17.12 @ 9:51AM

That's the way it is already with private pensions.

Gary Taylor| 5.17.12 @ 1:27PM

I don't believe the federal gov't. is set up to take over public pensions.

Larry| 5.18.12 @ 2:35AM

Bill, I'm afraid you are right. And I don't want to be paying for California's profligate public employee pension system. The unions should be paying for it.

Rico54| 5.18.12 @ 4:04AM

One proviso should be added to a state bankruptcy: reduction to territorial status until it survives ten years sans budget deficit. this would effectively eliminate electoral participation outside of state politics. Yeah we'll help out- for a price.

Appleby| 5.17.12 @ 6:53AM

Just like Mrs. Thatcher said: the problem with socialism is that sooner or later you run out of other people's mney.

I left California in the late 1970s, having realized that it was no place for a grownup; clearly many other people are realizing the same, and fortunately there are advantaged states nearby who will happily take them and their success right in. I don't have much sympathy for California; I lived there when Jerry Brown was governor the last time, and he hasn't changed a bit. If you elect King Frog to govern you, what else can you expect? Of course, the socialists expect that they will Receive and others will Pay Their Fair Share, forever. They took that sign seriously that says DON'T GROW UP: IT'S A TRAP!

DG in GA| 5.17.12 @ 11:08AM

I think that they expect King Barack to bail them out when the inevitable bankruptcy looms. I pray that the United States government isn't that stupid. I have an idea. Since supposedly the people in Silicon Valley are so darn smart and rich, and the people in Hollywierd are so darn rich, why don't THEY pool their resources and bail out California? They're the ones who keep voting these liberal losers in.

play nice| 5.17.12 @ 3:33PM

"...happily take them and their success right in..."

so you're familiar with the term "Californicate'?

TLP| 5.17.12 @ 7:15AM

TLP| 5.17.12 @ 7:09AM

So, what's the problem? This is "NEWS", the way the Sun coming up in the morning, is News.

It's THE Democrat Stronghold in the Country. It is, and has been, the Incubator for every Far Left, Cosmic Anomaly, Harikrisna inspired, Flowers in your Hair, Head up your Ass, Utopian idea, for forever.

Did I mention that this "NEW" Governor, the one that is Shepherding the Suicide State over the Cliff, as we speak, is actually the "OLD" Governor, who got the ball rolling in the first place, way back in the late 60's/early 70's, in between Acid trips with Timothy Leary?

It's true.

They've brought back the Father of all of their problems, that he might FINISH what he started. Apparently, the concept of Insanity being the repetition of failed activities, under a preconceived belief that, a different result would occur than what had occurred the previous 5,000 times before, is foreign to the People of the Golden Bear Regions. After all, this IS where The Beautiful People live. The people with One Mansion, Two Kids, Three Addictions, Four Arrests from their three addictions, and at least Five previous stays, at the Betty Ford Clinic.

Truly, Pride DOTH goeth, before the fall.

The Golden State is fast becoming the Duffle Bag full of Severed Heads, on a Bridge, along the border State. They have become the optimization of the Perfect Leftis World. They have the Very Rich, and the Very Poor. The Well Educated, and the Uneducated. The Prophet - John Edwards - once said: "Behold, for I see the coming of TWO AMERICAS. One for the Rich, and one for the Poor. REPENT! REPENT! REPENT!"

As the old saying goes, unlike Las Vegas, "What happens in California, soon moves to the rest of the Country".

Too late.

nathan| 5.17.12 @ 7:47AM

You will note that we hear the usual threats. That if taxes are not raised, education will be cut, police and fire will be cut. But the governor's pet project, high speed rail, which is a ghastly waste of money well eliminating that is not on the table. So for governor moonbeam the rail line is more important than education. (We here in northern Virginia know all about mass transit, we have our very own "big dig" project, the metro silver line which is marvelously over budget and interestingly is being built by the same contractor who actually did the "big dig." )

The fact is that a lot of people in California can bail to neighboring states where tax policy and spending policies are more rational. You can't force people to live where they don't want to. Unless California, not interested in building a wall along it's southern border, wishes to contemplate building a "Berlin Wall" along its other borders to keep its residents in? Hotel California for real?

JT| 5.17.12 @ 9:44AM

Problem is that many of those "bailing out" to other states are the ones who voted in the socialists in the first place and are not running from the very thing they voted for and will again vote for at their new cribs in other states. Like a freaking cancer that keeps spreading. California is a national disease.

JT| 5.17.12 @ 9:45AM

Excuse me, NOW running from.

idalily| 5.17.12 @ 2:00PM

Very true, JT. That is because liberals are like locusts: they move to a state, bankrupt and destroy it with their liberal idiocy, then leave to bankrupt and destroy another state. I've seen the liberal locust migration going straight up from California to Oregon and Washington, and it is slowly spreading into my beloved Idaho. Damn them.

datameister| 5.17.12 @ 7:33PM

Uh, no. Not really the case.

The people who are leaving are the conservatives, for the most part. We' ve had enough of the looniness. And from a personal perspective, I'm tired of being vilified by sanctimonious morons who think they have all the answers and putter about in their Prius, all holier-than-thou.

I've taken to urinating on their door handles whenever possible - except that there are now so many of them, I just target the ones with Obama stickers.

Albert Constantine Jr.| 5.17.12 @ 10:14PM

I'll fedex you some bottled water if that will help you continue in your crusade.

Von Mises Jr| 5.17.12 @ 8:09AM

Why is the Congress so concerned about JPM losing $2B in a market transaction, when Corzine stole $2B and lied to Congress without a peep? The double standard and attack on free market capitalism is proved to be fraud every day by our Democrat State Governors and DC politicians.

oldfart| 5.17.12 @ 8:20AM

Camera time. That is all this is about on the part of Congress. Plus Corzine was a political insider - one of the 'boys' so he gets a free pass.
I don't blame the dude that made these stupid transactions - I blame a lack of supervision and management controls.
I don't care how good you are - with that dollar volume of transactions, knowing that everyone blows one from time to time, where was the supervision? If in fact the trader was much of a dope then, if I was JPMorgan I would sue the supervisor and the individual trader.

Von Mises Jr| 5.17.12 @ 9:22AM

Dodd Frank set up five superbanks that are "too big to fail." It is just another example of the failures of central planning.
Ben "The Bank" Bernanke and "Little Timmy Turbotax" Geithner set up a money machine through five superbanks that barrow at .002% at the Fed Window and buy Treasuries with 2-3% coupon yeilds at an "all you can eat buffet." And then we wonder why mistakes are made?
In a free market economy with many small banks making small calculated decisions, mistakes are less likely to fall under the radar, and when they do, they are not $2B or someone goes out of business. It is called market discipline.
But all-in-all, the division made money unlike MF Global where Corzslime stole $2B and the company went bankrupt. In a free society, Corzslime would be in jail right now and some of the money would be recovered. Instead, Corzslime walks around a free man making campaign contributions to ObaMao.

c. j. acworth| 5.17.12 @ 8:25AM

Isn't this the same Gov. Moonbeam who ran for President on a platform that included a flat income tax? He should maybe try it in CA.

Soquel Creek | 5.17.12 @ 9:35PM

Yep. His tax policy adviser was none other than Art Laffer of Reagan Administration fame. Laffer is still attempting to fix California's failed and flawed tax system.

Editorial: Smoothing out California's revenue stream
http://www.ocregister.com/arti.....affer.html

Suzyqpie | 5.17.12 @ 8:25AM

Another topic that is never broached when deficit spending is the topic is the salaries of the bureaucrats. Salary cuts were the first thing that happened to those of us in the private sector in 2008. Right across the board, top to bottom.

Suzyqpie | 5.17.12 @ 8:37AM

If California is Greece, will those of us in Red Sate America get to be Germany? Do the looters/plunders out number the workers/savers in California?

Clint| 5.17.12 @ 8:39AM

Ludwig von Mises,
" Government spending cannot create additional jobs. If the government provides the funds required by taxing the citizens or by borrowing from the public, it abolishes on the one hand as many jobs as it creates on the other."

Bobloblaw| 5.17.12 @ 9:12AM

Ahhhh but don't you know say liberals. It's all in the multiplier. Thus taking 1$ from you and spending it by govt will result in more than $1 of growth due to the magic multiplier.

Von Mises Jr| 5.17.12 @ 11:43AM

The only thing government spending multiplies is lefties bank accounts.
The argument is nonsensical. Their premise is that we are too stupid to spend our money wisely. So they give scientist money to study shrimp on treadmills. monkeys on cocaine (that is another way of describing the Democrat Party) and spending it on "Animal Farm" windmills that we know don't really exist. But the Bama's donors get half-billion her, half-billion there.
It's the Kinks "Money-go-round." "A little bit here and a little bit there and it comes out here."

Historian| 5.17.12 @ 8:59AM

New York City went into receivership under "Big MAC" and a Gov. who said the days of wine and roses is over. Painful decisions were made and they worked. This was followed by Mayor Guliani who restored Law and Order.
NY is again threatened by the lovers of Urban decay.
If Gov. Moonbeam could acquiesce to to a "California Berger" which would effect what "Big MAC (Municipal Assistance Corporation)" did to save the State. the nation would all profit from California's Agriculture, and creativity.

kwan| 5.17.12 @ 9:03AM

It doesn't take a rocket scientist to figure out that as the producer/workers move-out and more and more moochers move-in the former Golden State will be fundamentally transformed into Motown-West. Another fine example of your Democrat Party wining the future for the American people.

PCP Smoker| 5.17.12 @ 9:11AM

Good piece. What puzzles me is that despite the ominous future, the State continues to be busy and beautiful. I-5 and 15 in San Diego are as crowded as they were in the late 80s. Business are everywhere. Capitalism seems to be alive and well. If this is what economic death looks like, then maybe it won't be that bad.

Poppakap| 5.17.12 @ 3:29PM

You simply don't notice the mass exodus because the freeways have been crowded for 40 years. Furthermore, the constant influx of illegal aliens keeps the freeways humming when rational citizens move out.

Skippy| 5.17.12 @ 9:38PM

Tell that to the 11%+ unemployed...

Anthony| 5.17.12 @ 9:34AM

Poor vtwin, no place to hide. If it ain't Gov. Moombeams coming for his wallet, it's the Oakland hoodie gangbangers storming the fair city by the bay.
As the Heston character screamed in "Planet of the Apes" "IT"S A MAD HOUSE". Yes it is vtwin, and you are there!!!

Tanguera| 5.17.12 @ 9:37AM

California: Cloward-Piven test case? Since it makes no sense whatsoever what is going on there fiscally speaking, one must consider an agenda. We must, must, must keep in mind that the country is being run by radicals, assisted domestically and internationally by a very wealthy, very successful, very anti-American, Open-Society-desiring George Soros. We need to seriously entertain such a "big picture" (read: agenda) and start talking about how to push back. Such rhetoric, sadly, is beneath our brave Republicans in the House and Senate...

Stan Redmond| 5.17.12 @ 10:33AM

Ross,

You also forgot the nearly 9% sales tax, depending on the county and city, on top of a 9% income tax in the @-Pk bracket. I would guess between federal, state, and local taxes in California a middle class single earner pays upward of 70% in real taxes.

Of course the solution is to raise them even hire so Brown can spend more.

I was born and raised in California. I LOVED where I lived. I left to expand my company. It's only a rare vacation time I go back to see the old stomping grounds and visit the family graves. It's sad to see such a place devistated by the government. Especially in the San Juaquin Valley. One of the most fertile areas on the planet turned in to a dustbowlby some government jerk.

cowgirl| 5.17.12 @ 10:54AM

The "dustbowl" in the San Joaquin Valley, where I now live, was created by The Religion of Global Warming. The Warmists believed that the reason the Delta Smelt (a small fish introduced to the Delta about 30 years ago to feed the salmon) was dying in huge numbers was because the water from the Delta was being released to the Central and South Central Valley to water the crops in those areas that bascially fed the United States. The courts in San Francisco agreed with the Warmists and ordered the water to be cut off. Of course the water was not cut off to Nancy Pelosi's vineyards. Those thank the Lord were spared. The Judge in San Francisco decided to shut down the water based on the Endangered Species Act. The problem with this court decision is that the Endangered Species Art requires that the Endangered Species was native to the area. Of course this was not the case but the Warmists believe that they are superior to all of those walking the face of this earth including other people just like them. The water has been cut off for two years now and the Delta Smelt is still dying. Even biology professors from the very very liberal U.C. Davis agree that the water flow from the delta to the Central and South Central Valleys has nothing to do with the dying Delta Smelt. To find out more about this liberalism is a mental illness debacle google Victor David Hanson and read his enlighting articles about the devastation that has been wrough on the people and the illegal aliens - you know the ones that liberals care so much about when elections roll around - in the area. Reading it though is not as bad as viewing the damage - I have been down that way a couple of times in the past three years and parts of the Central and South Central Valleys echo that of Third World Countries. Go Warmists - doing what is best for mankind. Of course that is only their kind.

Stan Redmond| 5.18.12 @ 7:55PM

I had the pleasure of studying under Victor Davis Hanson during his time at Fresno State.

cowgirl| 5.17.12 @ 10:46AM

We conservative, redneck Californians who have watched the Liberals destroy this state over the past 40 years don't call California the stupid state for no reason.

WL| 5.17.12 @ 10:55AM

I hate watching this movie...when I think about the large minority of conservative voters in California...who are watching their state get pummeled by the Democrats and their stupid voters...

But for the majority of those idiots out there....and in Illinois...and every other liberal Democrat garbage dump in the country...

Watching this movie play out couldn't be any better if I wrote the script myself!!!!!!!!!!!!!!!!!!!!!!!!!!!

It's like watching a state full of 30 million pea brained MORONS act like a pack of rabid dogs....

MikeBee| 5.17.12 @ 11:06AM

California declare bankruptcy? Let's see: how many benefits to this can we count?
1) All contracts, including union contracts, are immediately null and void.
2) A federal judge will be brought in to divide up and sell the state's assets. The first would be the state-owned electricity utility. It would be sold back to someone who can actually run a utility: a utility company.
3) The state would no longer be able to pay any support to the 2 million illegals who live there. This would cause reverse immigration, as they return to Mexico, where they may get more benefits. (Actually, this is already happening, as there are so few jobs in CA right now, with all the employers moving out.)
4) All state spending must cease immediately, as there is no money to support any spending. Right now, there is no money to support state spending, but the spending continues, due to Democrats and Gov. Moonbeam in charge.
5) The Environmental lobby, which presently controls the entire state of CA, would lose all power. This may cause home values in CA to drop, as more land is now available for building, even if the tse-tse fly lives there. More Californians would be able to buy homes, once again. This would also cause food prices to drop, as farmers in the central part of the state would once again be able to water their crops, increasing food supply again. This would also cause water prices to drop, as Californians would be free to build desalination (sp.?) plants just off the shoreline, increasing the supply of potable water. With the release of the stranglehold placed on CA by the environmentalists, living in the state would be much cheaper.
6) With things so cheap in CA, businesses would once again return to CA, increasing hiring for residents. (Oh, oh! Would once again increase illegal immigration, once more jobs are available.)

Any more I missed?

Daveevad| 5.17.12 @ 12:57PM

Remember that bankruptcy is administered by the Federal judiciary - from the same people that brought you the Ninth Circuit Court of Appeals.

Even in bankruptcy it's likely life would continue with spending as usual, union contracts going unvoided (if frozen), and the taxpayers fleeced to make up the difference until, bankrupted themselves, they leave the State.

RCV| 5.17.12 @ 11:26AM

Sorry, Ross, but California is not Greece. Yes we have severe budget problems, and yes they will require some tought fiscal discipline. But California, unlike Greece, has always been a remains a center for creative innovation and a magnet for intelligent, vibrant, creative entrepreneurs. That continues. More startups still flourish in and around Silicon Valley and Los Angeles than anywhere else. Our agriculture and entertainment industries continue to thrive. We will get through this tough period and will continue to be the major contributor to our nation's economic engine.

dc| 5.17.12 @ 11:54AM

Sure, RCV, things will get better, because they'll just get better. Everything will be fine. No problem, right? Every fact Ross cites, every stat, every productive person leaving the state--no problem, because, hey, it's going to be ok. The ultra-rich, whose money I do not begrudge them, in Silicon Valley are going to have to "invest" in some very good walls and private security, if they want to maintain their standards of living. And when you're up $1B, what's 40% of that? Still a pretty big number, if the ultra rich paid that share. But they're smart, or hire smart people, so they don't pay that, and you know it (nor do I blame them). A culturally rotten society with a population of welfare addicts growing much, much faster than the number of ultra-rich is effing doomed. And not a cent of my money is going to bail you losers, chumps, deadbeats, and government-worshipping scum out of your miserable morass.
RCV, pollyannish idiots like you are the reason non-Californians, and outnumbered conservative Californians, despise the state. So, wallow in your own shitpile. Begging for bailouts, which you'll do without the slightest shame (shame being an unknown cultural concept in CA), isn't going to work.
Or, just secede and be responsible for your own terminal cancers. You think CA is so effing great, it should be no problem, right?

RCV| 5.17.12 @ 4:39PM

No, they're not going to get better just "because they'll get better." They'll get better because California is a dynamic, economically productive place that continues to attract bright, intellectually curious, entrepreneurial people from the rest of the country. It's why blue states like California have provided the federal tax dollars that the red states have sucked out for the last twenty years or so -- read the facts, DC. And if this is a "shitpile" it's a mighty fine one to someone like me who could live anywhere he chose.

We in California will take care of our own problems, thank you. And we have no intention of seceding from the United States of America -- that's something you in the red states do, and threaten to do every other day. And if you try it, the results will be the same as last time. If you don't like the America of 2012: tough. Go somewhere that's more to your liking.

Nick| 5.17.12 @ 6:45PM

"and if you try the results will be the same as last time"...... I taught in my Catholic School that the states that seceded were all Blue States. By the way my schooling cost about 1/2 the amount per student as the public schools did. That's why I am sending my kids to Catholic School too, better education for less money per student.....how do they do it.

Bobloblaw| 5.17.12 @ 11:58AM

""But California, unlike Greece, has always been a remains a center for creative innovation and a magnet for intelligent, vibrant, creative entrepreneurs. ""

No it doesnt, that's the point. Theyre fleeing the state.

Your high tech industry is slowly moving to Austin and NoVa
Your Ag industry is strangled by water restrictions
Your entertainment industry is moving to GA and NC. Less than 45% of all films and TV are made in CA.

Your's is the attitude that is wrecking CA. Your arrogance simply cant fathom the fact you live in America's first or second (IL ) failed state. Your state increasingly looks like a third world country. You point to three industries (ignoring the fact they are leaving) that have lots of wealth creation but little employment creation. Thus the very top of CA's economic ladder benefits, but no one else does.

Here is the basic problem with CA. There is no more private sector middle class. There are three types of groups in CA.

Gentry Liberals-Like the poster above. They live along the coast, are filthy rich, employed by Hollywood or Silicon Valley. They are immune from CA's social and economic problems and oblivious to what is happening around them from their gated communities. Taxes dont bother them, they care most about climate change and gay marriage.

Immigrants-Tons of impoverished immigrants from latin america and asia. They drive down wage rate for native born workers and serve primarily the Gentry Liberals by cutting their grass, caring for their one designer baby or cook their gourmet foods.

Public Sector-This is where CA's middle class lies. Employed as cops, firemen, nurse, teachers and prison guards. They serve an important function in society, but in and of themselves create no wealth. Gone is aerospace and auto manufacturing from CA (the basis of SoCa's economy until the late 1980s).

CA is a state run by the very rich for the benefit of the very rich and very poor. It is in essence a third world aristocracy.

CA's tax base is too small and its benefits base too large. Not that CA has great services, it doesnt (most third world socialist dystopias dont), but so many people in CA collect some type of govt assistance.

CA needs a vibrant private sector middle class. They type that use to live in Long Beach in the 1950-90 period. The Inland Empire was once a major manufacturing center with GM and Ford manufacturing cars there. No more.

bob| 5.17.12 @ 4:23PM

You are so on the money it is scary. But the Public sector you talked about includes hundreds of over paid cubicule workers in the school systems who probably are more than the combination of all cops/guards/FF and actual teachers. Look at UC and CSU systems. And of course being a clear thinker I will have to put you in your place. THEREFORE YOU HOMOPHOBE/RACISTS/ANTISEMITE/ POOR HATING TEA PARTY SCUM HOW DARE YOU SAY SUCH THINGS. There I feel alot better now.

RCV| 5.17.12 @ 5:07PM

The Kaufman Index of Entrepreneurial Activity confirms that in the most recent year California had an entrepreneurial index (number of new business per population) of .44%, exactly the same as Texas, and exceeded only by Arizona. More new business startups in California than any other state. Of all the cities in the country, Los Angeles had the highest entrepreneurial startup rate -- 580 per 100,000.

California continues to rank first in the nation in the number of private equity investment deals, followed by Texas and New York.

The reality is that young, enterprising people would rather live and work and spend their life here than amongst the kind of people who write the kinds of posts we see on this TAS board. Can't say I blame them.

Bobloblaw| 5.17.12 @ 5:43PM

Sorry

People are fleeing the state not moving to it. But all your stats about private equity investment deals mean nothing to the million of unemployed Californians. Again you focus on the tiny 1% of CA that is part of the Gentry Liberal Class. Where is the GM factory in Ontario? or the Aerospace firm in Long Beach? They are gone and with them 10000's of jobs paying 50-200k per year. You can take your Zuckerberg and Theil, but they cant save your state.

skip| 5.17.12 @ 6:40PM

FYI: California unemployment has been 2 million, not 1 million.

skip| 5.17.12 @ 9:36PM

'Caifornia Ugly', Wall Street Journal, 5.14.12:

"California Controller John Chiang reported last week that April tax collections were a gigantic 20.2%, or $2.44 billion, below 2012-2013 budget projections"

RCV| 5.17.12 @ 6:45PM

No, as you Republicans tell us all the time, those "tiny" gentry entrepreneurs are the ones that drive the economic engine.

The people who have fled California are largely unskilled and factory workers who had skills for an old economy that doesn't exist anymore, and certainly not here. They can't afford the higher price of real estate in both the Bay area and Southern California. But the start up electronic, high tech and other companies that continue to expand in both the Bay area and Southern California will provide the base for our recovery.

The Nevadas and Mississippis and the depressed economies in the older rust belt I worry much more about. Let's see where California is in five years and where those states are in five years. I know where I'd bet on.

Skippy| 5.17.12 @ 9:58PM

Except capital investment is also fleeing the state. Sure, there's a Web2.0rhea bubble right now but look at the semiconductor world or Apple. Intel's new fabs are all out of state in OR, AZ, TX, or overseas. Apple is little more than a pretty box around a Foxconn multimodal shipping container with some meh software thrown in. The fact is that TX is producing the jobs and is in fact stealing jobs from CA precisely because it isn't burdened by the lunacy that reigns in CA.

Being on the fringe of the so called rust belt I'm getting really tired of that description. The fact remains that many of those derided states are outperforming CA today. Certainly when it comes to unemployment and fiscal discipline there's no comparison. Even your vaunted valley has double digit unemployment. The only thing holding CA together is its "coolness" to attract the FB's of the world. Sooner or later that ends and as CA certainly doesn't have the domestic human capital to compete that pretty much is lights out for the state.

Bobloblaw| 5.18.12 @ 9:19AM

Your really are an ignoramus.

Are you suggesting that the income gap between CA and MS has WIDENED the past 20 years??? Because it hasnt. MS, AL, SC have all had faster income growth the past 20 years than has CA.

As for the unskilled, youre drowning in them. Only they arent factory workers born in the USA who pay taxes. They come from the third world and can barely read and write their own languages much less english.

RCV| 5.19.12 @ 3:47PM

...speaking of someone who can barely write his own language.

Bobloblaw| 5.20.12 @ 10:24AM

When you cant attack the facts, attack the poster....I win, you lose.

Jack| 5.18.12 @ 12:10AM

Where is this "mass exodus" and "fleeing the state" - if this is true, why are rents and home prices in most of CA so high? Ever hear of supply and demand?

Bobloblaw| 5.18.12 @ 9:24AM

1. Home prices are down 40-50%
2. CA for the first time since 1850 registered population growth below that of the national average and didnt pick up an additional congressional seat
3. Gentry Liberal areas like Bay Area, Silicon Valley and West Hollywood have not seen the decline the middle class areas like Riverside and Ontario have.
4. The fleeing from the state is middle class US born residents. They are being replaced by poor third world immigrants. The composition of the state is what is changing (fewer productive middle class private sector workers, more third world immigrants)

RCV| 5.19.12 @ 3:51PM

The economically dynamic areas where new businesses and high tech developments flourish -- around the Silicon Valley near Stanford, in San Francisco and the westside of Los Angeles -- have actually seen rises in home prices.

And yes, the aerospace assembly and car assembly jobs that used to give a lot of people work in Southern California are gone. That kind of American old industrial base is gone. For good. But the technological and entrepreneurial growith remains here. Because California continues to attract young, bright, dynamic people. They want to live here. Not among folks like you, Bobloblaw.

Bobloblaw| 5.20.12 @ 10:26AM

You still dont get it:

1. Those industries are leaving the state
2. They dont provide the broad economic benefits that the job they replace did. Does CA need a vibrant private sector or Mark Zuckerberg and his $20b??? You obviously prefer the latter.

VCR| 5.19.12 @ 5:33PM

" . . . a gigantic 20.2%, or $2.44 billion, below 2012-2013 budget projections" - wsj 5.14.12 - "California Controller John Chiang reported last week that April tax collections were a gigantic 20.2%, or $2.44 billion, below 2012-2013 budget projections" - wsj 5.14.12 - "California Controller John Chiang reported last week that April tax collections were a gigantic 20.2%, or $2.44 billion, below 2012-2013 budget projections" - wsj 5.14.12 - "California Controller John Chiang reported last week that April tax collections were a gigantic 20.2%, or $2.44 billion, below 2012-2013 budget projections" - wsj 5.14.12 - "California Controller John Chiang reported last week that April tax collections were a gigantic 20.2%, or $2.44 billion, below . . . "

AaronTX| 5.17.12 @ 6:09PM

If Californians are moving to Austin and northern Virginia they'll just make those places more liberal.

Oh wait, they have, NoVA is the reason Virginia is a swing state now, and make no mistake it's happening in TX too, TX just has a much larger "out of the cities" population to counteract it. For now.

I've lived in TX most of my life, from what I see, TX today is what CA was in the 60s through 80s. At that time CA was a conservative state pulling people from the midwest/northeast, eventually it turned liberal as those people demanded services. TX will eventually go blue if that trend continues. It took CA 30 years to change, though, will probably take TX that long.

RCV| 5.17.12 @ 6:47PM

All economic dynamic states eventually turn blue, because they attract well-educated, affluent people who tend to prefer a more cultured, diverse and tolerant atmosphere.

Skippy| 5.17.12 @ 10:01PM

Tolerant as long as you agree with a particular philosophy. Let's not forget which side invented political correctness.

Herculean| 5.18.12 @ 12:20AM

Political correction, as you call, is not limited to the left. The Right, more so the the Left, has little tolerance to those that do not reflexively adhere to the conservative agenda.

Bobloblaw| 5.18.12 @ 9:29AM

Which explains all the pro-life Democrats.....oooops.

Jack| 5.18.12 @ 12:05AM

Brilliant, concise, and absolutely true.

Bobloblaw| 5.18.12 @ 9:27AM

""affluent people who tend to prefer a more cultured, diverse and tolerant atmosphere.""

And whose education destroys their common sense. As I posted above. Gentry Liberals care more about gay marriage and climate change than they do about economic growth

I challenge the notion CA is an educated state.

RCV| 5.18.12 @ 11:57AM

Sounds like a sour grapes from an underachiever.

VCR| 5.17.12 @ 12:27PM

" . . . just fine, thank you" - 3.2.12 - "I can assure you . . . the innovative, entrepreneurial, intelligent and tolerant Californians will take care of our own problems just fine, thank you" - 3.2.12 - "I can assure you . . . the innovative, entrepreneurial, intelligent and tolerant Californians will take care of our own problems just fine, thank you" - 3.2.12 - "I can assure you . . . the innovative, entrepreneurial, intelligent and tolerant Californians will take care of our own problems just fine, thank you" - 3.2.12 - "I can assure you . . . the innovative, entrepreneurial, intelligent and tolerant Californians will take care of our own problems just fine, thank you" - 3.2.12 " - I can assure you . . . the innovative, entrepreneurial, intelligent and tolerant Californians will take care of our own problems just fine, thank you" - 3.2.12 "I can assure you . . . the innovative, entrepreneurial, intelligent and tolerant Californians will take care of our own problems just fine, thank you" - 3.2.12 - "I can assure you . . . the innovative . . ."

Calvin| 5.17.12 @ 4:16PM

What a joke of a person. He looks at his brother Greeks and can see no similarities. In fact he seems to imply some ethnic superiority. Californians are a creative people not like those stupid Greeks. Who the hell is Socrates or Aristotle afterall? They don't measure up to your average Californian. Just maybe all people are victims to same pitfalls of human nature. If you do as the Californians do you will end up in bad shape. I think that is the lesson I will take away from the California experience. Vote conservative.

RCV| 5.17.12 @ 4:42PM

If you want to vote conservative, move somewhere else.

Calvin| 5.17.12 @ 5:20PM

You should vote conservative. Break out your calculator and face the reality of your foolish spendthrift instincts. Notice that all the states that are in big trouble are ones where your political party has taken over and made a mess. You have been mindlessly mimicking Europe. Check out how that is going in Europe. As it says in the good book, "As a dog returns to his vomit, so a fool returns to his folly. " Bon apetite!

Mr. Mojo| 5.17.12 @ 5:22PM

If you want to tell people how to vote perhaps you should move elsewhere. You probably would like North Korea.

RCV| 5.17.12 @ 6:47PM

I'm happy just where I am, Mr Mojo.

Calvin| 5.17.12 @ 7:19PM

There is a lot of vomit to feed on and RCV won't be leaving until somebody cleans up his mess.

Skippy| 5.17.12 @ 10:02PM

What happened to tolerance?

Mr. Mojo| 5.17.12 @ 5:19PM

Past performance does not guarantee future results.

Richard Baker| 5.17.12 @ 11:48AM

Let California and Illinois go bankrupt. Bailing them out would be throwing good money after bad. The liberal mentality has and will destroy these two states. Just finished Ann Coulter's "Demonic" and these two states exemplify her book.

Martin Owens | 5.17.12 @ 11:51AM

California like Greece?
I protest- on behalf of Greece!

At least the Greeks haven't imposed cap and trade on themselves unilaterally, as Crazyfornia has done. The Greeks are not ramming through a half-baked, never audited and never-to-be-paid-for high speed rail greendoggle.

I would count on Athens coming to its senses before Sacramento

Skep41| 5.17.12 @ 12:27PM

Listen buddy, it will only cost $37 billion and take twenty years to build a train that will get you from Bakersfield to Fresno REALLY FAST! Pretty cheap for something that might save the planet. Or do you just hate children and polar bears?

Martin Owens | 5.17.12 @ 1:25PM

I wish it WERE $37 billion dollars! The total bill is more like $100 billion - it's just that Those Who Know Best have cut the project up into phases, you see. What I'd like to know is why, when we ask what the damn thing will cost, we never get the same figure twice?

Gary Taylor| 5.17.12 @ 1:46PM

I like polar bears.

Anthony| 5.17.12 @ 3:17PM

Ever see one up close and personal? Big sumbitches, big enough to swallow Skep 41 and Paul 52 whole.
That's two carbon footprints down, a few million to go.

MikeBee| 5.17.12 @ 1:57PM

Skep,
Please explain to me how something that will run on electricity will save the planet, when most electricity is created from coal today.

Poppakap| 5.17.12 @ 3:34PM

You are being sarcastic, right?

cybercorrespondent | 5.17.12 @ 12:09PM

Why doesn’t Romney expose this? Is the GOP clueless or in on it?
Watch this video http://youtu.be/HcBaSP31Be8 and you’ll see why all Democrats and RINO’s Republicans need to be voted out of office. We the people need to pass this on to make sure that this Unconstitutional Bill is repealed.
http://cybercorrespondent.wordpress.com

Skep41| 5.17.12 @ 12:24PM

I live here. I cant leave. All around me, in the film industry, I am surrounded by people disgruntled and disappointed because Obama and Brown are too far to the right. The bosses of the companies I work for are all Democrats. The mayor of Los Angeles and the city council are all Democrats as is the entire school board. The legislature is 2/3 Democrats and Jerry Brown is our governor. The media is as objective as the media in Pyongyang. There is absolutely no hope of reform. I was forced to join a labor union and money from my required dues is routinely used to pump up candidates I despise. There is no place on Earth that deserves a Greece-style meltdown more than California. One day the subsidy and pension checks will bounce and chaos will erupt but the sun will still shine, pleasant breezes will blow and the oranges on my backyard tree will still taste sweet.

RJ| 5.17.12 @ 12:43PM

I share your pain. California didn't use to be radically leftist; it sure is now and, as you say, there are no signs of reform on the horizon. My guess is that the public school system played a significant role in the changing attitudes of Californians. We pay a high price for "education" but only get centers of state indoctrination. Hang in there, Skep.

Anthony| 5.17.12 @ 1:04PM

Only if you have enough ammo to keep the hoards away from your orange tree.

escondidosurfer| 5.17.12 @ 3:35PM

I share your pain. However, the subsidy and pension checks will not bounce. Instead, those foolish enough to lend money to CA or its local governments will be left holding the bag. The way the dems "saved" GM is now the template. Foolish are those who invest in CA debt.

RJ| 5.17.12 @ 12:36PM

As a long-time California resident, I see our problems as being much more than high taxes. In the 1960s, the cost of government was less while building infrastructure. For the last few decades, the infrastructure is not even being properly maintained and the cost of government is significantly higher. We are paying first class fare and getting stand-by service. California State government is not worth its price. Much of our government simply redistributes wealth for political purposes. There is no program that the politicians can "threaten" to cut which will cause me to think a tax increase is needed. I will vote against each and every tax increase on the ballot.

Conserdude| 5.17.12 @ 12:38PM

Californians deserve what they get because the state's electorate has wrought this Democrat-made economic disaster. They continue to elect socialist Democrats like Jerry Brown and legislative majorities, and the lunatic Sen. Babs Boxer, while voters passed up more responsible GOP alternatives like Meg Whitman and Carly Fiorina.

GT21| 5.17.12 @ 12:46PM

Your beloved saint, Ronald Reagan, was a union member. To be called a "socialist" by a fascist is a badge of honor. A**hole.

ACD| 5.17.12 @ 12:54PM

Explain the differences between fascism and socialist, a**hole.
Reagan, while an actor, was a member of a union because it was a condition of his employment. Do you really think that if he'd had a choice, he would have remained in the union? Was he bought and paid for by the unions as president? Hmm. Ask the Air Traffic Controllers. Idiot.
Your Dear Leader is following Mussolini's playbook, by the way, not Lenin's (yet). By the way both of the latter were buddies, philosophically. But you wouldn't know that, having never actually learned anything in your unionized classrooms. Fiddle away in your ignorance, but come begging for my money and I'll vivisect you for show and tell to my home-schooled kids.

Poppakap| 5.17.12 @ 3:42PM

blah, blah, blah, blah. Are you in kindergarten or do you just have juvenile rhetorical skills?

Reagan was in a private sector union. California's problem is its public sector unions. Understand the difference? Understand the impact to the cost of government? Understand why another socialist, FDR, said unions should never be allowed to exist in the public sector because it would be a conflict of interest and has too much potential for bankruptcy? Didn't think so.

BTW, fascism is when the economic system of a country has a incestuous relationship between government and business, ala the US economy under your messiah. Cash for clunkers? TARP bailout? That's fascism.

Go troll elsewhere and leave the important conversations to the adults and those with critical thinking skills.

GT21| 5.17.12 @ 4:37PM

The TARP bailout began with Bush and Paulson.
Alas, the Corporate owned Democrats went along with it.

Nick| 5.17.12 @ 7:01PM

Nazi's, which I assume you meant when saying fascists, were in fact socialists and leftists. Liberals like you always seem to forget that.

Herculean| 5.18.12 @ 12:23AM

If Nazis were socialists and leftists, then why did German corporations support them in the 1930s?

RCV| 5.18.12 @ 12:01PM

Nazis were not socialists, Nick, and I'm sure you're smart enough to know that. They adopted the name "National Socialists" to differentiate themselves from the communists and other leftists who had won the support of the German workers. But in reality, they were financed by German industrialists who profited mightily from their rise.

Daveevad| 5.17.12 @ 1:07PM

"...California doesn't have the option of seceding from the union..." While California may not have that option, it may be time for saner and more solvent states to do just that.

The former Confederacy re-ratified the Constitution under duress while under Union military occupation, by legislatures occupied by carpet-baggers from outside their states.

(This left collateral damage in the growth of the Glorious People's Democratic Socialist Party (a wholly owned subsidiary of the SEIU) in the South, which took decades to reverse - but I digress).

Perhaps it's time for solvent, sane Southern states from Texas to the Carolinas to abjure the illegal occupation by the United States and revert to independence. Let the corrupt union-owned states go under without our taxes and resources.

RCV| 5.17.12 @ 4:44PM

Just try it, just try it.

Seek| 5.17.12 @ 1:08PM

The issue is this: Do we as a nation have the guts to stop mass immigration, legal and otherwise, from Mexico? Otherwise, California, by far the most common destination for these Aztecs, is fiscally and culturally doomed.

MikeBee| 5.17.12 @ 2:04PM

Seek,
You're right. California could make a HUGE dent in their deficit by passing one simple law: all people who want healthcare services in hospitals are to provide proof that they are citizens of the U.S. Those who aren't, will not receive services. Reverse immigration will occur immediately, as Mexico will allow them in its hospitals, even if they have to wait in line for years. A year-long wait is better than no service at all. California would no longer have to pay Medicaid monies to illegals, solving much of their budget woes.

CforUS| 5.17.12 @ 1:18PM

You want to know what the problem with California's budget is? The number employed in the list below outnumber the total population of Alaska! How many are related (or were) related to someone that has a hand on the purse string?

These are all California State Agencies:

California Academic Performance Index (API) * California Access for Infants and Mothers * California Acupuncture Board * California Administrative Office of the Courts * California Adoptions Branch * California African American Museum * California Agricultural Export Program * California Agricultural Labor Relations Board * California Agricultural Statistics Service * California Air Resources Board (CARB) * California Allocation Board * California Alternative Energy and Advanced Transportation Financing Authority * California Animal Health and Food Safety Services * California Anti-Terrorism Information Center * California Apprenticeship Council * California Arbitration Certification Program * California Architects Board * California Area VI Developmental Disabilities Board * California Arts Council * California Asian Pacific Islander Legislative Caucus * California Assembly Democratic Caucus * California Assembly Republican Caucus * California Athletic Commission * California Attorney General * California Bay Conservation and Development Commission * California Bay-Delta Authority * California Bay-Delta Office * California Bio Diversity Council * California Board for Geologists and Geophysicists * California Board for Professional Engineers and Land Surveyors * California Board of Accountancy * California Board of Barbering and Cosmetology * California Board of Behavioral Sciences * California Board of Chiropractic Examiners * California Board of Equalization (BOE) * California Board of Forestry and Fire Protection * California Board of Guide Dogs for the Blind * California Board of Occupational Therapy * California Board of Optometry * California Board of Pharmacy * California Board of Podiatric Medicine * California Board of Prison Terms * California Board of Psychology * California Board of Registered Nursing * California Board of Trustees * California Board of Vocational Nursing and Psychiatric Technicians * California Braille and Talking Book Library * California Building Standards Commission * California Bureau for Private Post Secondary and Vocational Education * California Bureau of Automotive Repair * California Bureau of Electronic and Appliance Repair * California Bureau of Home Furnishings and Thermal Insulation * California Bureau of Naturopathic Medicine * California Bureau of Security and Investigative Services * California Bureau of State Audits * California Business Agency * California Business Investment Services (CalBIS) * California Business Permit Information (CalGOLD) * California Business Portal * California Business, Transportation and Housing Agency * California Cal Grants * California CalJOBS * California Cal-Learn Program * California CalVet Home Loan Program * California Career Resource Network * California Cemetery and Funeral Bureau * California Center for Analytical Chemistry * California Center for Distributed Learning * California Center for Teaching Careers (Teach California) * California Chancellors Office * California Charter Schools * California Children and Families Commission * California Children and Family Services Division * California Citizens Compensation Commission * California Civil Rights Bureau * California Coastal Commission * California Coastal Conservancy * California Code of Regulations * California Collaborative Projects with UC Davis * California Commission for Jobs and Economic Growth * California Commission on Aging * California Commission on Health and Safety and Workers Compensation * California Commission on Judicial Performance * California Commission on State Mandates * California Commission on Status of Women * California Commission on Teacher Credentialing * California Commission on the Status of Women * California Committee on Dental Auxiliaries * California Community Colleges Chancellors Office, Junior Colleges * California Community Colleges Chancellors Office * California Complaint Mediation Program * California Conservation Corps * California Constitution Revision Commission * California Consumer Hotline * California Consumer Information Center * California Consumer Information * California Consumer Services Division * California Consumers and Families Agency * California Contractors State License Board * California Corrections Standards Authority * California Council for the Humanities * California Council on Criminal Justice * California Council on Developmental Disabilities * California Court Reporters Board * California Courts of Appeal * California Crime and Violence Prevention Center * California Criminal Justice Statistics Center * California Criminalist Institute Forensic Library * California CSGnet Network Management * California Cultural and Historical Endowment * California Cultural Resources Division * California Curriculum and Instructional Leadership Branch * California Data Exchange Center * California Data Management Division * California Debt and Investment Advisory Commission * California Delta Protection Commission * California Democratic Caucus * California Demographic Research Unit * California Dental Auxiliaries * California Department of Aging * California Department of Alcohol and Drug Programs * California Department of Alcoholic Beverage Control Appeals Board * California Department of Alcoholic Beverage Control * California Department of Boating and Waterways (Cal Boating) * California Department of Child Support Services (CDCSS) * California Department of Community Services and Development * California Department of Conservation * California Department of Consumer Affairs * California Department of Corporations * California Department of Corrections and Rehabilitation * California Department of Developmental Services * California Department of Education * California Department of Fair Employment and Housing * California Department of Finance * California Department of Financial Institutions * California Department of Fish and Game * California Department of Food and Agriculture * California Department of Forestry and Fire Protection (CDF) * California Department of General Services * California Department of General Services, Office of State Publishing * California Department of Health Care Services * California Department of Housing and Community Development * California Department of Industrial Relations (DIR) * California Department of Insurance * California Department of Justice Firearms Division * California Department of Justice Opinion Unit * California Department of Justice, Consumer Information, Public Inquiry Unit * California Department of Justice * California Department of Managed Health Care * California Department of Mental Health * California Department of Motor Vehicles (DMV) * California Department of Personnel Administration * California Department of Pesticide Regulation * California Department of Public Health * California Department of Real Estate * California Department of Rehabilitation * California Department of Social Services Adoptions Branch * California Department of Social Services * California Department of Technology Services Training Center (DTSTC) * California Department of Technology Services (DTS) * California Department of Toxic Substances Control * California Department of Transportation (Caltrans) * California Department of Veterans Affairs (CalVets) * California Department of Water Resources * California Departmento de Vehiculos Motorizados * California Digital Library * California Disabled Veteran Business Enterprise Certification Program * California Division of Apprenticeship Standards * California Division of Codes and Standards * California Division of Communicable Disease Control * California Division of Engineering * California Division of Environmental and Occupational Disease Control * California Division of Gambling Control * California Division of Housing Policy Development * California Division of Labor Standards Enforcement * California Division of Labor Statistics and Research * California Division of Land and Right of Way * California Division of Land Resource Protection * California Division of Law Enforcement General Library * California Division of Measurement Standards * California Division of Mines and Geology * California Division of Occupational Safety and Health (Cal/OSHA) * California Division of Oil, Gas and Geothermal Resources * California Division of Planning and Local Assistance * California Division of Recycling * California Division of Safety of Dams * California Division of the State Architect * California Division of Tourism * California Division of Workers Compensation Medical Unit * California Division of Workers Compensation * California Economic Assistance, Business and Community Resources * California Economic Strategy Panel * California Education and Training Agency * California Education Audit Appeals Panel * California Educational Facilities Authority * California Elections Division * California Electricity Oversight Board * California Emergency Management Agency * California Emergency Medical Services Authority * California Employment Development Department (EDD) * California Employment Information State Jobs * California Employment Training Panel * California Energy Commission * California Environment and Natural Resources Agency * California Environmental Protection Agency (Cal/EPA) * California Environmental Resources Evaluation System (CERES) * California Executive Office * California Export Laboratory Services * California Exposition and State Fair (Cal Expo) * California Fair Political Practices Commission * California Fairs and Expositions Division * California Film Commission * California Fire and Resource Assessment Program * California Firearms Division * California Fiscal Services * California Fish and Game Commission * California Fisheries Program Branch * California Floodplain Management * California Foster Youth Help * California Franchise Tax Board (FTB) * California Fraud Division * California Gambling Control Commission * California Geographic Information Systems Council (GIS) * California Geological Survey * California Government Claims and Victim Compensation Board * California Governors Committee for Employment of Disabled Persons * California Governors Mentoring Partnership * California Governors Office of Emergency Services * California Governors Office of Homeland Security * California Governors Office of Planning and Research * California Governors Office * California Grant and Enterprise Zone Programs HCD Loan * California Health and Human Services Agency * California Health and Safety Agency * California Healthy Families Program * California Hearing Aid Dispensers Bureau * California High-Speed Rail Authority * California Highway Patrol (CHP) * California History and Culture Agency * California Horse Racing Board * California Housing Finance Agency * California Indoor Air Quality Program * California Industrial Development Financing Advisory Commission * California Industrial Welfare Commission * California InFoPeople * California Information Center for the Environment * California Infrastructure and Economic Development Bank (I-Bank) * California Inspection Services * California Institute for County Government * California Institute for Education Reform * California Integrated Waste Management Board * California Interagency Ecological Program * California Job Service * California Junta Estatal de Personal * California Labor and Employment Agency * California Labor and Workforce Development Agency * California Labor Market Information Division * California Land Use Planning Information Network (LUPIN) * California Lands Commission * California Landscape Architects Technical Committee * California Latino Legislative Caucus * California Law Enforcement Branch * California Law Enforcement General Library * California Law Revision Commission * California Legislative Analyst's Office * California Legislative Black Caucus * California Legislative Counsel * California Legislative Division * California Legislative Information * California Legislative Lesbian, Gay, Bisexual, and Transgender (LGBT) Caucus * California Legislature Internet Caucus * California Library De velopment Services * California License and Revenue Branch * California Major Risk Medical Insurance Program * California Managed Risk Medical Insurance Board * California Maritime Academy * California Marketing Services * California Measurement Standards * California Medical Assistance Commission * California Medical Care Services * California Military Department * California Mining and Geology Board * California Museum for History, Women, and the Arts * California Museum Resource Center * California National Guard * California Native American Heritage Commission * California Natural Community Conservation Planning Program * California New Motor Vehicle Board * California Nursing Home Administrator Program * California Occupational Safety and Health Appeals Board * California Occupational Safety and Health Standards Board * California Ocean Resources Management Program * California Office of Administrative Hearings * California Office of Administrative Law * California Office of AIDS * California Office of Binational Border Health * California Office of Child Abuse Prevention * California Office of Deaf Access * California Office of Emergency Services (OES) * California Office of Environmental Health Hazard Assessment * California Office of Fiscal Services * California Office of Fleet Administration * California Office of Health Insurance Portability and Accountability Act (HIPAA) Implementation (CalOHI) * California Office of Historic Preservation * California Office of Homeland Security * California Office of Human Resources * California Office of Legal Services * California Office of Legislation * California Office of Lieutenant Governor * California Office of Military and Aerospace Support * California Office of Mine Reclamation * California Office of Natural Resource Education * California Office of Privacy Protection * California Office of Public School Construction * California Office of Real Estate Appraisers * California Office of Risk and Insurance Management * California Office of Services to the Blind * California Office of Spill Prevention and Response * California Office of State Publishing (OSP) * California Office of Statewide Health Planning and Development * California Office of Systems Integration * California Office of the Inspector General * California Office of the Ombudsman * California Office of the Patient Advocate * California Office of the President * California Office of the Secretary for Education * California Office of the State Fire Marshal * California Office of the State Public Defender * California Office of Traffic Safety * California Office of Vital Records * California Online Directory * California Operations Control Office * California Opinion Unit * California Outreach and Technical Assistance Network (OTAN) * California Park and Recreation Commission * California Peace Officer Standards and Training (POST) * California Performance Review (CPR) * California Permit Information for Business (CalGOLD) * California Physical Therapy Board * California Physician Assistant Committee * California Plant Health and Pest Prevention Services * California Policy and Evaluation Division * California Political Reform Division * California Pollution Control Financing Authority * California Polytechnic State University, San Luis Obispo * California Postsecondary Education Commission * California Prevention Services * California Primary Care and Family Health * California Prison Industry Authority * California Procurement Division * California Public Employees Retirement System (CalPERS) * California Public Employment Relations Board (PERB) * California Public Utilities Commission (PUC) * California Real Estate Services Division * California Refugee Programs Branch * California Regional Water Quality Control Boards * California Registered Veterinary Technician Committee * California Registrar of Charitable Trusts * California Republican Caucus * California Research and Development Division * California Research Bureau * California Resources Agency * California Respiratory Care Board * California Rivers Assessment * California Rural Health Policy Council * California Safe Schools * California San Francisco Bay Conservation and Development Commission * California San Gabriel and Lower Los Angeles Rivers and Mountains Conservancy * California San Joaquin River Conservancy * California School to Career * California Science Center * California Scripps Institution of Oceanography * California Secretary of State Business Portal * California Secretary of State * California Seismic Safety Commission * California Self Insurance Plans (SIP) * California Senate Office of Research * California Small Business and Disabled Veteran Business Enterprise Certification Program * California Small Business Development Center Program * California Smart Growth Caucus * California Smog Check Information Center * California Spatial Information Library * California Special Education Division * California Speech-Language Pathology and Audiology Board * California Standardized Testing and Reporting (STAR) * California Standards and Assessment Division * California State Administrative Manual (SAM) * California State Allocation Board * California State and Consumer Services Agency * California State Architect * California State Archives * California State Assembly * California State Association of Counties (CSAC) * California State Board of Education * California State Board of Food and Agriculture *California Office of the Chief Information Officer (OCIO) * California State Children's Trust Fund * California State Compensation Insurance Fund * California State Contracts Register Program * California State Contracts Register * California State Controller * California State Council on Developmental Disabilities (SCDD) * California State Disability Insurance (SDI) * California State Fair (Cal Expo) * California State Jobs Employment Information * California State Lands Commission * California State Legislative Portal * California State Legislature * California State Library Catalog * California State Library Services Bureau * California State Library * California State Lottery * California State Mediation and Conciliation Service * California State Mining and Geology Board * California State Park and Recreation Commission * California State Parks * California State Personnel Board * California State Polytechnic University, Pomona * California State Railroad Museum * California State Science Fair * California State Senate * California State Summer School for Mathematics and Science (COSMOS) * California State Summer School for the Arts * California State Superintendent of Public Instruction * California State Teachers Retirement System (CalSTRS) * California State Treasurer * California State University Center for Distributed Learning * California State University, Bakersfield * California State University, Channel Islands * California State University, Chico * California State University, Dominguez Hills * California State University, East Bay * California State University, Fresno * California State University, Fullerton * California State University, Long Beach * California State University, Los Angeles * California State University, Monterey Bay * California State University, Northridge * California State University, Sacramento * California State University, San Bernardino * California State University, San Marcos * California State University, Stanislaus * California State University (CSU) * California State Water Project Analysis Office * California State Water Project * California State Water Resources Control Board * California Structural Pest Control Board * California Student Aid Commission * California Superintendent of Public Instruction * California Superior Courts * California Tahoe Conservancy * California Task Force on Culturally and Linguistically Competent Physicians and Dentists * California Tax Information Center * California Technology and Administration Branch Finance * California Telecommunications Division * California Telephone Medical Advice Services (TAMS) * California Transportation Commission * California Travel and Transportation Agency * California Unclaimed Property Program * California Unemployment Insurance Appeals Board * California Unemployment Insurance Program * California Uniform Construction Cost Accounting Commission * California Veterans Board * California Veterans Memorial * California Veterinary Medical Board and Registered Veterinary Technician Examining Committee * California Veterinary Medical Board * California Victim Compensation and Government Claims Board * California Volunteers * California Voter Registration * California Water Commission * California Water Environment Association (COWPEA) * California Water Resources Control Board * California Welfare to Work Division * California Wetlands Information System * California Wildlife and Habitat Data Analysis Branch * California Wildlife Conservation Board * California Wildlife Programs Branch * California Work Opportunity and Responsibility to Kids (CalWORKs) * California Workers Compensation Appeals Board * California Workforce and Labor Development Agency * California Workforce Investment Board * California Youth Authority (CYA) * Central Valley Flood Protection Board * Center for California Studies * Colorado River Board of California * Counting California * Dental Board of California * Health Insurance Plan of California (PacAdvantage) * Humboldt State University * Jobs with the State of California * Judicial Council of California * Learn California * Library of California * Lieutenant Governors Commission for One California * Little Hoover Commission (on California State Government Organization and Economy) * Medical Board of California * Medi-Cal * Osteopathic Medical Board of California * Physical Therapy Board of California * Regents of the University of California * San Diego State University * San Francisco State University * San Jose State University * Santa Monica Mountains Conservancy * State Bar of California * Supreme Court of California * Teach California * University of California * University of California, Berkeley * University of California, Davis * University of California, Hastings College of the Law * University of California, Irvine * University of California, Los Angeles * University of California, Merced * University of California, Riverside * University of California, San Diego * University of California, San Francisco * University of California, Santa Barbara * University of California, Santa Cruz * Veterans Home of California

RJ| 5.17.12 @ 1:47PM

You have put together an impressive list. The sad thing is that there are probably even more state agencies operating and that there are people who claim that each and everyone of them is underfunded and has already been "cut to the bone." (PS - I could have missed it, but I couldn't find the State Bar of California on the list)

MikeBee| 5.17.12 @ 2:06PM

RJ,
CforUS does not include any County agencies, or City agencies. The list would triple in size, if he did.

Anthony| 5.17.12 @ 3:22PM

C, How the hell did you do that??

Poppakap| 5.17.12 @ 3:46PM

"I'm from the California State Government and we're here to help you..."

Based on this list, is there anything anyone can do in California without government intruding?

Vicky Bennett | 5.17.12 @ 4:14PM

California is run by a bunch of liberal dems. The unions made promises they cannot keep to the employees..

Move out of California, there are plenty of other states where you can live a wonderful prosperous life, just not in Cali.

skip| 5.17.12 @ 11:09PM

Excellent post CforUS. Apparently a post of such rare magnificence it even silences snide disagreeable sanctimonious hypocritical pathetic despicable Californian Jeffersonian natural manure.

Stan Redmond| 5.18.12 @ 7:57PM

YET. Each of those important agencies is SOOO important and so underfunded there can not possibly be a single thing to cut.

RCV| 5.19.12 @ 5:50PM

Things are so very different in a Red State, like Texas:

Adjutant General * Administrative Hearings, State Office of * Aerospace Commission* Affordable Housing Commission* Texas Department of Aging and Disability Services * Agricultural Experiment Station, Texas * Agriculture Extension Services, Texas * AgriLife Extension Services * AgriLife Rearch, Texas* Agriculture Resources Protection Authority * Agriculture, Department of * Aircraft Pooling Board * Alcohol and Drug Abuse, Texas Commission on * Alcoholic Beverage Commission * Alternative Fuels Council * Anatomical Board * Angelina and Netches River Authority * Angelo State University *
Animal Damage Control Services, Texas * Animal Health Commission, Texas * Apiary Inspection Service * Appraiser Licensing and Certification Board * Architectural Examiners, Board of * Arts, Texas Commission on the * Assistive and Rehabilitive Services, Office of * Attorney General,Office of the * Auditor, State Department of * Banking, Department of * Barber Examiners, Board of * Blind, Texas Commission for the * Bond Review Board,Texas * Brazos River Authority * Canadian River Compact Commission * Canadian River Municipal Water Authority * Cancer Council, Texas * Cancer Prevention and Research Institute of Texas * Cemetery, Texas State * Chemist, Office of the State * Children's Trust Fund of Texas Council *Chiropractic Examiners, Board of * Commerce, Texas Department of * Coastal Coordination Council * Cogeneration Council * Competitive Government, Council on * Comptroller of Public Accounts * Consumer Credit Commissioner * Office of Cosmetology Commission, Texas * County and District Retirement System * Court Administration, Office of * Court Reporters Certification Board * Court of Appeals- 1st District * Court of Appeals- 2nd District * Court of Appeals- 3rd District Court of Appeals- 4th District * Court of Appeals -5th District * Court of Appeals- 6th District Court of Appeals- 7th District * Court of Appeals -8th District *Court of Appeals- 9th District * Court of Appeals- 10th District * Court of Appeals- 11th District *Court of Appeals- 12th District * Court of Appeals- 13th District * Court of Appeals- 14th District * Credit Union Department * Criminal Appeals, Court of * Criminal Justice Policy Council *
Criminal Justice, Texas Department of * Deaf and Hard of Hearing, Texas Commission for the * Dental Examiners, Board of * Developmental Disabilities, Council for * Developmental Disabilities, Office for the Prevention of * District Courts Comptroller's Judiciary Section * Drought Preparedness Council * Early Childhood Intervention, Interagency Council on
* Education Agency, Texas * Educational Technology, Center for * Educator Certification, State Board for * Edwards Aquifer Authority * Emancipation Juneteenth Commission * Emergency Communications, Advisory Commission on State * Employees Retirement System * Engineering Experiment Station, Texas * Engineering Extension Services, Texas * Engineers, Board of Professional * Entomologist, Office of the State * Environmental Quality, Board of * Ethics Commission, State * Facilities Commission * Family and Protective Services, Dept of * Feed and Fertilizer Control Service *Finance Authority, Texas Public * Finance Commission, State * Fire Fighter's Pension Commission *Fire Protection, Texas Commission on * Food and Fibers Commission, Texas * Forest Service, Texas * Funeral Service Commission, Texas * General Land Office * General Services Commission * Geoscientists, Board of Professional * Governor, Office of the * Groundwater Protection Committee * Guadelupe Blanco River Authority * Gulf Coast Waste Disposal Authority * Headwaters Ground Conservation District * Health and Human Services Commission * Health, Texas Department of * Health Care Information Council, Texas * Health Professionals Council * Higher Education Coordinating Board, Texas * High Plains Undergound Water Conservation District * Historical Commission, Texas House of Representatives * Housing and Community Affairs, Texas Department of * Human Rights, Commission on * Human Services, Department of * Incentive and Productivity Commission, Texas * Information Resources, Department of * Injured Employee Council, Office of * Insurance, Texas Department of * Jail Standards, Commission on * Judicial Conduct, Commission on * Juvenile Probation Commission, Texas *Lamar University -Beaumont * Lamar University -Orange * Lamar University -Port Arthur * Lamar University System * Land Surveying, Texas Board of * Lavaca-Navidad River Authority * Law Enforcement Officer Standards and Education, Commission on * Law Examiners, Board of * Law Library, Texas State * Legislative Budget Board * Legislative Counsel, Texas * Legislative Reference Library * Library and Archives Commission, Texas State * Licensing and Regulation, Department of * Lottery Commission, Texas * Lower Colorado River Authority * M D Anderson Cancer Center, UT * Medical Examiners, Board of * Mental Health and Mental Retardation, Texas Department of * Midwestern State University * Military Facilities Commission * Motor Vehicles, Department of * Municipal Retirement System * Museums, Association of * Music Office, Texas * National Guard Armory Board * National Research Lab Commission, TX * Natural Resource Conservation Commission, Texas * North Plains Groundwater Conservation Distirct * North Texas Tollway Authority * Nueces River Authority * Nurse Examiners, Board of * Nursing Facilities Administrators, Texas Board of * Offenders with Mental Impairments, Texas Council on * OneStar Foundation * OnSite WasteWater Treatment Council * Optometry Board *Parks and Wildlife Department * Panhandle Groundwater Conservation District * Pecos River Compact Commission * Pension Review Board, State *
Pest Control Board, Texas Structural * Pharmacy, Board of * Physical Therapy Examiners, Board of *Physical and Occupational Therapy Examiners, Executive Council of * Plumbing Examiners, Board of * Podiatry Examiners, Board of * Polygraph Examiners Board * Prairie View A & M University * Preservation Board, State * Prevent Child Abuse Texas * Private Investigators and Private Security Agencies, Board of * Professional Engineers, Board of Registration for * Protective and Regulatory Services, Department of *Psychologists, Board of Examiners of * Public Accountancy, Texas State Board of * Public Community/Junior Colleges *
Public Insurance Council, Office of * Public Safety, Department of * Public Utility Commission, Texas * Public Utility Counsel, Office of * Purchasing from People With Disabilities, Council on * Racing Commission, Texas * Radioactive Waste Disposal Authority, Texas Low-Level * Railroad Commission *
Real Estate Commission * Red River Authority * Red River Compact Commission * Rehabilitation Commission, Texas *Research and Oversight Council on Workers' Compensation, Texas * Residential Construction Commission * Rio Grande Compact Commission * Rio Grande Regional Water Authority * Risk Management, Office of * Rural Affairs, Department of * Sabine River Compact Administration * Sam Houston State University * San Antonio State Chest Hospital * San Jacinto River Authority * Savings and Loan Department * Savings and Mortgage Lending, Dept of * School for the Blind and Visually Impaired * School for the Deaf * Secretary of State * Securities Board * Senate *
Sex Offender Treatment, Council on * Skill Standards Board * Soil and Water Conservation Board *South Texas Hospital *Southwest Collegiate Institute for the Deaf * Southwest Texas State University * State Prosecuting Attorney * State-Federal Relations, Office of * State Bar of Texas * Stephen F. Austin State University * Sul Ross State University *Sunset Advisory Commission * Supreme Court * Tarleton State University * Tax Professional Examiners, Board of * Teacher Retirement System * Telecommunications Infrastructure Fund * Texas A&M University - Commerce * Texas A&M University - Corpus Christi *Texas A&M University - Galveston * Texas A&M University - Kingsville * Texas A&M University - Texarkana * *Texas A&M International University * Texas A&M University * Texas Association Against Sexual Assault * Texas Southern University * Texas State Technical College System * Texas State University System *Texas Tech University * Texas Tech University Health Science Center * Texas Transportation Institute * Texas Travel Industry Association * Texas Woman's University * Toxic Substances Coordinating Committee * Transportation,Texas Department of * Transportation Institute, Texas * Trinity River Authority * University of Houston * University of Houston - Victoria * University of Houston - Clear Lake *University of Houston - Downtown * University of Houston System * University of North Texas *University of North Texas Health Science Center at Fort Worth * University of Texas of the Permian Basin * University of Texas- Pan American *University of Texas Health Center at Tyler * University of Texas Health Science Center at Houston * University of Texas Health Science Center at San Antonio * University of Texas Medical Branch at Galveston * University of Texas Southwestern Medical Center at Dallas * University of Texas System * University of Texas at Arlington * University of Texas at Austin * University of Texas at Brownsville *University of Texas at Dallas * University of Texas at El Paso * University of Texas at San Antonio *University of Texas at Tyler * Upper Colorado River Authority * Upper Guadelupe River Authority * Veterans Commission, Texas * Veterans Land Board * Veterinary Medical Diagnostic Laboratory, Texas *Veterinary Medical Examiners, Board of * Vocational Nurse Examiners, Board of * Volunteerism and Community Service, Texas Commission on, *Water Development Board * Water Well Drillers Board * West Texas A&M * Widlife Damages Management Services, Texas * Workforce Commission, Texas * Workers' Compensation Commission, Texas * Workforce Competitiveness, Council on * Youth Commission, Texas

VCR| 5.20.12 @ 10:06AM

" . . . . [Texas] budget does not raise taxes . . . .

. . . . [California] governor hopes..the proposed measure would also increase..income taxes..and..sales tax . . . .

. . . . Gov. Rick Perry signed..budget for FY2012-13..that addressed..through cuts..a $4.1 billion shortfall, with $3.9 billion of the deficit coming from Medicaid costs..intentionally underfunded..options available..include tapping a $1.6 billion revenue surplus or turning to the state's rainy day fund..that..had $6.1 billion as of Feb. 2012 and will have $7.3 billion by October 2012 . . . .

. . . . in FY2013..Gov. Jerry Brown had initially projected a $3.1 billion deficit..but the new May revision is showing this amount to have increased to $15.7 billion . . . .

. . . . [Texas] budget does not raise taxes . . . .

. . . . [California] governor hopes..the proposed measure would also increase..income taxes..and..sales tax . . . .

. . . . in FY2013..Gov. jerry Brown had initially projected a $3.1 billion deficit..but the new may revision is showing this amount to have increased to $15.7 billion . . . .

. . . . [Texas] budget does not raise taxes . . . .

. . . . [California] governor hopes..the proposed measure would also increase..income taxes..and..sales tax . . . ."

JGTheMan| 5.17.12 @ 1:36PM

Why doesn't California have the option to secede from the union? But of course, the real question is, why would they? They are going to come begging to the other states via the federal government to bail them out. I'd see Texas leaving before California.

Bill| 5.17.12 @ 1:48PM

Jerry "Springer" Brown is a "Marxist Moron Union-thug Tax-hiker Regulatory Devil."

ABNCP| 5.17.12 @ 1:53PM

My God CforUS , no wonder Greeceafornia is about to implode. After the next election even old moonbeam will have to understand there will be no bail out from Obama cause he won't be there. All the Democrats that have been controling that mismanaged state for lo these 50 years will have no idea what to do except raise taxes and cut services because that is all their ideaology lets them believe will work. When they do that and they will have to do that, the riots that will occur will be just like what has been seen in Greece. The poor bastards who have beeen receiving all the Government goodies will not allow them to be taken away without bloodshed and anarchy. Maybe it's a good thing the 1st Marine Division is at Camp Pendleton Greecafornia.

Pat| 5.17.12 @ 2:31PM

Timely article and, yes, California is exactly like Greece, only with tasteless baklava and a state wide scarcity of saganaki. And our governor is a perpetual infant, but then again so is our president. How did Brown get into office? Same way as Obama. More folks voted for him than his opponent. So, if you live in Oklahoma or perhaps Alabama, maybe your governor is a decent individual and your state government isn’t totally corrupt like ours – but you have to deal with Obama’s mighty works just as we do. How’s that working out for you?

And somehow “California envy” turned into “California mockery” these past few years. But the real lesson here is that a place is merely a place, it’s the people who make all the difference. Consequently, it may be an opportune time to tout the virtues of your state to hard working Californians who wish to escape – and not to escape the incredible natural beauty of our state but rather to escape from other dysfunctional Californians who think like Greeks and steal like Somali pirates. Why should Nevada, Utah and Texas reap all the benefits from hard working immigrants fleeing California and who might be convinced to relocate into your state?

Eventually, Sacramento will wake to the pending disaster but, just like Greece today, you can’t undo 40 years of corrupt government overnight. And just as the Greeks are doing now, Californians will scream unfair when the crisis comes to a rolling boil. Emulating the Greeks, Californians will then claim they sincerely want to change their ways but desperately need some help getting over the hump.

And guess who will be expected to bail California out when that day of reckoning comes? So, the good folks of Oklahoma and Alabama will be forced to fund a future California bailout. Therefore, it would be wise to take in some of California’s boat people, but only if they have the useful skills, education and creativity you value. Take them in but, whatever you do, don’t allow them to vote.

StanO| 5.17.12 @ 8:10PM

Don't worry the ones leaving aren't the problem, they are the producers.

Glenn Koons| 5.17.12 @ 2:44PM

Every Ca. Dem lib should read this article. Every Ca.voter, even the unions=CTA,SEIU, should read this article. No matter the Guv. Pub or Dem, when the State Leg. is filled with Dem socialists, the taxing, spending, regs will go on and on. Achievement in education, Care, public safety has all fallen under this leftist ideology and philosophy. Ca. is Greece and France and becoming Cuba and Zimbabwe. The SF Chronicle and LA Times keep lying to its readers and not enough people in Ca. read anything or listen or see anything which keeps them from being brainwashed by the Progressives.

Sawitcoming| 5.17.12 @ 3:30PM

California certainly leads the pack in problems, and not that much can be blamed on Illegal Immigration - rather, look east, to NYC, the other "capitol" of the ENTERTAINMENT field. Herein is the crux of the problem, where the 0.03% of the 'EARNERS' of America rake in the Gazillions not only entertaining us, but learning so far left that most quite literally have their "LEFT EARS ON THE GROUND".

And WHERE do there bags of gold originate? Why it's the 99% have-nots on the dole who spend all on their Movies, Music & TALENT (along with iPhones).

In Hollywood and "ON BROADWAY", there is a gaping hole where Love of America USED to be.

Dustoff| 5.17.12 @ 3:30PM

My once great state of CA. Yet you dummies re-elected Moon-beam Brown.
What, you don't remember the last time he was gov and the mess he left. Plus look at what he did to Oakland.

Fools I tell ya.

Vicky Bennett | 5.17.12 @ 4:10PM

Amazing. Biden is looking very frail and old in this pic... Maybe Obama will choose Hillary instead... could happen.
MITT 2012

Thom| 5.17.12 @ 5:10PM

You need some younger glasses.....

Thom| 5.17.12 @ 4:54PM

“Since California doesn't have the option of seceding from the union,”

If a majority of the “several states” voted for Californification to leave the Union who would raise an army to put down that vote? King Obama aka Lincoln the 2nd?

I bring this up because the same people who worship the non-enumerated concept that the “several states” who created the Federal Government and then voted on its enumerated powers and limitations can’t leave it voluntarily are probably going to be faced with an undesirable fact in the future along this line of thinking.

If the majority producers don’t put a stop to this never ending transfer of wealth from producers to sloths, the only option left will be to throw the worst offenders out of the “union” as Europe is looking to do with its sloth cousins. If this doesn’t happen then the largest sloth “several states” in the union will drag down a substantial portion of that which many still believe cannot be undone by the actions of the “several states” that built this Union. That irreconcilable difference can lead to a place sane people don’t want to go but somebody has to pay all these unfunded government liabilities at the Federal, State and local levels. Delusional people think Californification can pull out of these by taxing itself a little more into prosperity. The State’s demographics are wholly against this and two decades of trends are only going to accelerate when the other “several states” members get back on track and draw off more income and brain trust from our own Greek Tragedies in the making. I would vote for both California and Illinois succeeding tomorrow.

Marvin E. Fox | 5.17.12 @ 5:47PM

California and Greece seem to have another problem in common that is recognizable by their similar attitudes, although californians have not yet reached the riotous state similar to the Greeks.
Both seem to think there is a hidden source of weath their respective politicians can tap into if they elect even more committed socialists than the ones who have screwed their economies. Hiring socialist to cure the problems caused by socialism can only come from a state of abject denial of the problem. I wish them well but I see hard times ahead and no grounds for a solution to their real problems. maybe God will help. I know they need His help.
Marvin E. Fox

Shaboe Delucks| 5.17.12 @ 5:53PM

Another similiarity: California is the only place in the US with a Mediterranean climate. Calfornia's geography is still breathtaking, and I'm not talking about the tired old cliche of surf and ski in the same day. If only there were a way to live in California's geography but not its culture.

Pat| 5.17.12 @ 6:29PM

Kaminsky is correct in zeroing in on finance, the heart of the problem is what happens when you run out of other people’s money. And Kaminsky gave us a partial answer as well – you get the heck out of Dodge. Like the Cypriot living in London, the trick is not to be a Californian during the End of Days.

At this moment in time, it’s every Greek for himself, time to pack up the family Conestoga and leave, either literally or figuratively. Yesterday, Greeks withdrew $700 million in bank deposits, mattresses throughout Athens are bulging with Euros while individual Greeks sniff the wind for a clue on to what to do next. Experts expect the bank account drain to continue unabated, better to be holding trusty old Euros than a bushel basket full of new Greek drachmas. What will be the exchange rate between the Euro and the drachma when the dust settles – it’s anyone’s guess but don’t expect the drachma to be a coveted currency.

For California, the cash drain will accelerate as the Boomers retire. Homes will be put on the market, bank account balances transferred and disposable income spending will occur not in Los Angeles or San Jose but in North Carolina, assuming they will take in California’s refugees. Earn a buck anywhere near California’s borders and the state’s aggressive tax collectors will try to claim that income for California, so you must divest completely and then move well beyond their reach.

What happens when the Boomers flee the coop? California sales tax rates soar to as high as 9.75% in the Bay Area - gone. The state’s greedy annual income tax collections on every loose dollar of earned income – gone. Even the DMV loses its recently increased annual license fee revenue on all cars and trucks, antiques included. Disposable income Boomer spending goes to local merchants in Texas or North Carolina so various business taxes levied on California’s retailers are – gone.

When the retirees leave they take their money with them and a horde of new immigrants, legal or otherwise, won’t make up for the lost wealth even if population numbers increase. The squeeze between reduced tax revenues and increased state spending will only serve to accelerates Gray Flight as the legislators frantically dream up new forms of taxation. For California’s current and soon to be AARP members, the only song playing in the jukebox will be “Goodbye California”.

Isa Ten| 5.17.12 @ 6:35PM

I do not understand all this squabbling in the comments about redistribution of the funds by the Federal government. Those are Federal programs.
The problem that California has is with the STATE expenditures and STATE taxes. What California gets back from the Federal government does not matter. It is not a substitution for what California spends on its own.
The fact is that California spends too much. Even this year with a $9B shortfall projected in January California managed to spend additional $3B more than it projected at the same time.
First, cut all the spending which is absolutely necessary. Then see what your fiscal situation is.
Of course, there is also a dispute about what "absolutely necessary" means. My 12-old grandson thinks that to have his own iPhone 4S is "absolutely necessary". With such mentality California is doomed.

BlackSaint| 5.17.12 @ 7:19PM

California the Golden state, Obama and the Democrats model for American future, is fast becoming the poster child for an bankrupt third world State!

An unholy alliance of Socialist Democrat politicians, Unions, and Illegal Aliens supporters are feasting like hogs at the trough of tax payers paid benefits while taxing & regulating business and the tax paying public into poverty.

The pandering of Left Wing Democrat Politicians to their constituency of Unions, Illegal Aliens and open border supporters, are driving business and citizens to other states & countries, while leaving the parasites & welfare leeches in an increasing bankrupt, crime ridden, dysfunctional state!

For years California has ignored economics 101 and imported Criminals, Uneducated Parasites, and poverty from Mexico, which increased Medical, Welfare, Crime, Prison, etc. & adding a estimated 22 billion per year to Calif. State expense to support the invading horde of Illegal Aliens while exporting business and educated tax payers.

Like all Socialist countries the results have been a astronomical increase in social welfare, schooling, prison cost etc. and a lowing of Living standards, Heath care, Education standards, Tax receipts & finally Bankruptcy.

The policies of Obama and Wash. DC Democrats are intent on following Calif. policies and Pro-Illegal Aliens, Pro-Unions and Anti-tax paying citizens and are endorsing the same socialist process of rewarding the Corrupt, Stupid, Foolish, Lazy, Greedy & Criminal while punishing the responsible, honest, law abiding & hard working citizens of American.

Failure to abide by our Constitution against invasion & enforce our Immigration laws and constraints on wages and benefits for public employees will result in turning the Golden State into MexiCalif and the end of the Calif. Dream and the beginning of the MexiCalif. Nightmare!

Amnesty & Citizenship as a reward for their invasion of the USA, with chain immigration will result in the rest of the USA turned into a Spanish speaking third world cesspool and follow California into a polluted, over populated, Spanish speaking, third world Slum of Crime, Corruption, Poverty, Cruelly & Misery modeled on Mexico!

This will result in a population depending on Welfare and the Democrat party, thus assuring the lock on power for the Socialist Democrat party of the United States of Mexico!

BlackSaint| 5.17.12 @ 7:28PM

What does the 26 cities over 250K and the greatest poverty level have in common?

All are heavy unionized and all have been controlled by Democrats for many many years!

Does this fact and the Blue States bordering on Bankruptcy penetrate the mental fog surrounding. the Liberal mind of most Democrat voters?

Of Course NOT!

Never have so many been oblivious to the obvious.

They still think the Democrat Politicians are concerned about their Welfare.

The same party and polities that reduced the black population into welfare bondage and the most dependable Democrat voters will work just as well for the rest of the population.

Just reduced them to poverty and Depending on Welfare and you have a Democrat voter for life!

President Zero and the Democrats are pursuing the same polities and spreading poverty for the rest of the Nation that have turned those cities and blue States like Calif., Illinois, New York etc. into basket cases and made them dependable votes for the Democrats!

The more the Democrats can spread Poverty, Welfare and the Entitlement mentality the more Democrat voters they make and the closer they get to a Third World Socialist Paradise controlled Lock, Stock and Barrel by the Democrat party!

The Obama Timeline | 5.17.12 @ 7:28PM

"Since California doesn't have the option of seceding from the union..."

Why not? All states have the right to secede.

cicero| 5.17.12 @ 7:37PM

Sorry I'm so late to the game. Last time I looked, a Chapter 9 bankruptcy filing allowed the governmental entity to shed all of its contracts and debt, without having to sell off its capital assets. Maybe an expert in bankruptcy law could enlighted us on that. I see these filings proliferate as the impossibility of governments to pay their debts and obligations become obvious. There is no more road for the can to be kicked down.

StanO| 5.17.12 @ 8:05PM

While the story is accurate in spirit, regarding middle class taxes, that's just not true. You would have to be in an odd situation to actually pay that much tax. We just paid a few hundred on income of 62k (from the 1040, so it was already lowered from real income).

The corporate taxes are what is really bad, no way to shield income or hold it over.

KPOM| 5.17.12 @ 8:56PM

I have one quibble. Our "Greece" isn't California, but rather, President Obama's home state of Illinois. They have a $140 billion unfunded pension liability and over $9 billion of unpaid current bills, even after raising income taxes 66.6% on everyone last year.

Nixonfan| 5.17.12 @ 9:01PM

Greece's main problem is that it has lost access to the bond market. That is not true for Lalaland, because they have a captive market for their debt: taxpaying Californians, for whom state bonds are state-tax exempt. This makes the muni market much less credit-sensitive than the eurozone government bond market, which is cross-border. The day may come when one of our states is so awful that its own citizens stop buying, but it hasn't happened since 1933.

Soquel Creek | 5.17.12 @ 9:16PM

Personally, I found claims about California's welfare roles unbelievable. Then, I was pointed to data from the United States Department of Health and Human Services (HHS).

http://www.acf.hhs.gov/program.....nt_tan.htm

Here's a plot showing the percentage of people receiving Temporary Assistance to Needy Families (TANF) benefits, by state, compared to each state's population. Only one state is a major difference from all the others -- California

CHART: http://www.twitpic.com/7emp1f/full

sandcanyongal| 5.20.12 @ 2:21PM

Good points. I know that in the greater Tehachapi area, farming and ranching has been replaced with wind turbines and solar. The skills of the people is in farming and livestock, not energy. The people here are failing miserably. The energy companies bring in their expertise from other states leaving the people poor.

Soquel Creek | 5.17.12 @ 9:18PM

CHART: California Income Tax Brackets and Governor Brown's Tax Hike Proposal Compared to the HIGHEST Marginal Tax Rate in the Other 49 States
http://www.twitpic.com/9g2pka/full

CHART: California State Sales Tax Rates and Governor Brown's Tax Hike Proposal Compared to the State Sales Tax Rate in the Other 49 States
http://www.twitpic.com/9gfz3z/full

Funny how only one state is tops in both in both categories. Despite having high taxes, California seems incapable of living within its means.

Soquel Creek | 5.17.12 @ 9:19PM

Who is bankrolling Governor Brown's tax hike initiative?

CHART: The Big Government and Union Special Interests Bankrolling Governor Brown's Tax Hike
http://www.twitpic.com/9gi4e1/full

Strange how these same names also appear on the list of California's biggest political spenders.

CHART: The 15 Biggest Spenders in California Politics
http://www.twitpic.com/75tc0v/full

Stan Redmond| 5.18.12 @ 7:58PM

Governor Brown also has to fund his double dipping retirements and double dipping paychecks.

sandcanyongal| 5.20.12 @ 2:05PM

Where the heck is the California Teacher's Assoc. getting this amount of money!!!

POST American| 5.17.12 @ 10:13PM

----Yeah!

--------Greece ---but with the first ocean currents
of the greatest world nuclear disaster in history,
FUKISHIMA, only now reaching its coasts.

AGAIN, you'd never know this if you depended
on the authorized capstone media.

------------HUAC is NOW Nuremberg 2012-----------

CABlue| 5.17.12 @ 11:12PM

I'm tired of these one sided articles. Just living all the negatives with no balance. Yes, California's budget is in trouble. Yes, some of this is our own fault, mainly not saving for a rainy day. And, yes, it was also triggered by the Great Recession which wasn't caused by Californians.

Please balance the the negatively with successful business that have chosen to start and stay in CA: Google, Apple, Facebook, Pixar (now Disney) just to start. Why do these companies stay in California? Think about that...

Please don't forget about our weather - we love it.

Please don't forget the freedom of California: to be who you want and create what you wish - many still come to CA because they feel stifled by narrow minded communities or thinking in other parts of the U.S. Its the freedom that allows companies to invent great technologies and entertainment - two powerhouses of the California economy. Move these two industries to many other states, the amazing will become ordinary.

But, again, our schools are hurting with 1000s of teachers laid off with the Great Recession and evaporated tax revenue, deferred road work, stretched city and state services. We've got serious issues.

But, in California, we can actually talk about these and consider tax increases with spending cuts to solve it - unlike Washington which is caught in dogma that is choking off rationale discussion.

Basically, just like there is the good and bad with any place, its the same in California too. Telling one story without the other is no story at all.

Stan Redmond| 5.18.12 @ 8:05PM

The recession did not drive companies out of California. Taxes, regulations, and very high energy prices did. Sacramento is full of state politicians who rarely, if ever, have learned to stop spending money. Great place to visit but I sure am glad I don't live there any more.

Jack| 5.17.12 @ 11:59PM

What a biased article. And notice the vitriol of the wierd uninformed right-wing comments - why are all these people such haters? I live in CA and there are actually hardly any "socialists" - sure there are liberals but also a lot of conservatives, and mostly a huge majority of educated independent voters. I also like how all of these people make assumptions about a state they know nothing about - have they ever been here? California is a highly productive place that attracts millions of smart, entrepreneurial people from all over - way more than any other state. What would all of these critics do without their internet, iPhones, computers, entertainment, and technology? Yep, we have problems just like anybody else - and we will take care of our own problems. Are we telling people in Mississippi what to do? Kudos to the guy who points out that the red states are the ones who threaten with seceding - what is up with that anyway?

Snickers| 5.18.12 @ 12:24AM

Kaminsky: "Greece is screwed, there are no jobs and it has been run by crooks." One might suggest that California is screwed, there are no jobs, and it has been run by Democrats...

One place is run by crooks, the other by Democrats. It sounds as if that is a distinction without a difference.

Larry| 5.18.12 @ 2:45AM

Ross - I looked at some statistics on Greek income tax rates. Looks to me like there is a reason why Greeks use the underground economy or try to evade paying taxes. The rates are much higher than here, with fewer deductions (the first 12,000 euros of income on salaries and pensions are exempt, and I don't know if there are any other deductions for other ordinary people, even though there is a lot of special treatment for actors, singers, and shipping tycoons. Everyone else pays pretty high rates generally. Add to that the current reduced VAT rate of 13% for certain basic items such as food and drink (the regular VAT rate in Greece is 23%!), and I can see it. They need tax reform just as we do in this country.

GarandFan| 5.18.12 @ 6:36PM

Yeah Ross. But you're just envious because Jerry is going to have a "bullet train". ;)

sandcanyongal| 5.20.12 @ 3:25AM

A 5% increase in school spending is not unreasonable considering the population size of the state and the sheer number of first rate district schools and state universities throughout the state.

Check out the CA Bill 2551 on the State Assembly agenda to vote on, to divert property tax revenues creation of financial districts specifically to develop renewable energy infrastructure. It may have an impact on school funding according to the analysis prepared by Roger Dunstan. He stated that AB2551 will create negative risks for the Educational Revenue Augmentation Fund (ERAF), possibly hundreds of millions of dollars. Approval of the bill may negatively offset General Fund obligations to schools.

Latest Headlines

Real Immigration Reform Requires Free Markets

Ross Kaminsky|79 comments

Enough With the Bipartisanship

Matt Purple|40 comments

The United States of El Norte

Larry Thornberry|58 comments

Vodka = Vodka = Vodka

Daniel J. Flynn|83 comments

Laying Down My Pen

Quin Hillyer

Tornado Chasers

Claire Healey|32 comments

We Will Remember

Roger Kaplan|25 comments

The Chinese Waltz

George H. Wittman|2 comments

The Spectacle Blog

Updated: NBC News: Holder Personally Approved Fox Reporter Warrant

Ross Kaminsky | 5.24.13

Felonious Attorney General?

Kaylin Bugos | 5.24.13

Did the Boy Scouts Cave to Pressure?

Claire Healey | 5.24.13

BBC World Survey Ranks Israel Near Bottom in Global Popularity

Aaron Goldstein | 5.24.13

Obamacare is a Big and Growing Problem for Democrats