It’s a new year in California and another budget crisis, potentially bigger than last year.California is $25 billion in the hole.
The first step in filling that gap involves a major bond auction on Thursday. But investors have started fleeing muni-bond ETFs in anticipation of a tepid auction.
Therein lies the key similarity: Like Greece, California relies on investors and can’t print its way out of debt.
Last year Schwarzenegger terminated part or all of six major programs: Healthy Families, CalWORKS, Adult Day Health Care, In-Home Supportive Services, California Food Assistance Program and Transitional Housing Placement
California has gone from overfunded during the tech bubble to underfunded across all the state pension plans.
Since the late 1970s, California has fallen from first in the nation in per-pupil spending, nearly to the bottom at number 48. With California's annual budget falling from $103 billion three years ago to $80 billion currently during what's often called the Great Recession, schools -- including the world class University of California system -- continue to face deep cuts in funding, fewer teaching positions, and a reduced ability to educate students.
Source: LA Times
A national report card released... by the American College of Emergency Physicians gave California a failing grade for access to emergency care. The state ranks last in emergency departments per capita, with only seven per 1 million people, compared with the national average of 20. And it ranks 43rd in the country for Medi-Cal reimbursement.
To get a handle on the damage California's current approach to incarceration is having on its citizens, consider this: In a recent 23-year period, California erected 23 prisons -- one a year, each costing roughly $100 million dollars annually to operate, with both Democratic and Republican governors occupying the statehouse -- at the same time that it added just one campus to its vaunted university system, UC Merced.
Source: LA Times
There are roughly 19,000 illegal immigrants in state prisons, representing 11% of all inmates. That's costing $970 million during the current fiscal year. The feds kick in a measly $111 million, leaving the state with an $859 million tab.