During his much ballyhooed, nationally televised debate with Florida Gov. Ron DeSantis last week, California Gov. Gavin Newsom boasted that the state’s economy is “booming” and leads the nation.
“California has no peers,” Newsom declared. “California dominates.”
About 18 hours later, reality reared its ugly head. The Legislative Analyst’s Office revealed that state tax revenues are running tens of billions of dollars behind expectations due to a slowing economy, creating a monumental budget headache.
(via Instapundit)
[Over the biennium, the revenue shortfall from budget planning will amount to $58 billion. Newsom had to know that was coming during his debate, too, as FY 2022 revenues got counted up last month. Far from “dominating,” California’s economy is performing much more weakly than projected, and the consequences of that will be severe. Expect the legislature to move forward with more penalties on capital, and then expect capital to flee California at an even higher rate as a result. — Ed]
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