A question was raised in a Facebook group yesterday from an East Coaster, regarding the federal debt limit, related to our great State:
“Since many in this group are Californians, I am wondering what you are thinking about August 2. Didn’t you go through a “debt crisis?” What happened there? It looks to outsiders like you just keep rolling along…just curious.”
My very quick, off the cuff answer:
California has been “lucky” in a lot of respects, being able to keep things going with smoke and mirrors, borrowing against future years, and other creative means, all the while not ever having a real balanced budget despite the state requirement to do so. It will all fall apart at some point, or continue along just on the cusp of breakdown until at some point the economy betters and thus increases sales and other tax revenue to the state. If the latter occurs, the Sacto politicos will once again be in hog heaven until the next economic slowdown, while never addressing fundamental budget issues. This cycle cannot last forever, but has at this point in CA for about the last 20 years.
What’s your answer?