The place was sitting on a large surplus up to now…
They have a deficit now…
Bad weather and tech industry layoff’s are a hurting it…..
Oh, and the California Governor may have to stop dissing the Red State guys and come home and deal with HIS state’s issues including a drop in population….
California has often been at the country’s economic forefront. Now, as fears of a national recession continue to nag, the state is hoping not to lead the way there.
While the California economy maintains its powerhouse status, outranking even those of most countries, the state’s most-powerful sectors — including tech companies and supply chain logistics — have struggled to keep their footing, pummeled by high interest rates, investor skittishness, labor strife and other turmoil.
Even the weather hasn’t cooperated. Severe flooding throughout much of the winter, caused by atmospheric rivers, has left farming communities in the Central Valley devastated, causing hundreds of millions of dollars in crop losses.
Thousands of Californians have been laid off in the last few months, the cost of living is increasingly astronomical, and Gov. Gavin Newsom revealed in January that the state faced a $22.5 billion deficit in the 2023-24 fiscal year — a plummet from the $100 billion surplus a year ago….
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Entertainment, another pillar of California’s economy, has also been in retreat as studios adjust to new viewing habits. Disney, based in Burbank, announced in February it would eliminate 7,000jobs worldwide….
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A recent survey from the nonpartisan Public Policy Institute of California found widespread pessimism about the economy. Two-thirds of respondents said they expected bad economic times ahead for the state in the next year and a solid majority of respondents — 62 percent — said they felt the state was already in a recession.
When Mr. Newsom announced the deficit earlier in the year, he vowed not to dip into the state’s $37 billion in reserves, and instead called for pauses in funding for child care and reduced funding for climate change initiatives.
Joe Stephenshaw, director of the California Department of Finance, said in an interview that he and top economists had begun to spot points of concern — persistent inflation, higher interest rates and a turbulent stock market — on the state’s horizon during the second half of last year….
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Over decades, California’s economy has historically seen the highest of highs and the lowest of lows, part of the state’s boom-bust history….
California is where the long talked about recession is beginning.
Bad news for Biden with an election year coming up.
Want to see something takes Trump off the front page?
This will do it .