The Democrat-run government has made California unsustainable.
Sep 2, 2019 09:31:35 #
The Top Four Reasons California Is Unsustainable
California is a place unlike any other on the Globe. It boasts perhaps the greatest natural resources of any state along with shining high-tech industries. However, like many good economic stories, government policies threaten its future.
Indeed, the Democrat-run government has made California unsustainable.
Of course, it wasn’t always this way. As the 1960s came to a close in California, it had a population of nearly twenty million. In the decade before, its economic strength afforded the construction of a vast State Water Project and higher education system that was the envy of the world. Matched with a majestic and trade-friendly coastline, along with visionary business leaders, California’s future seemed secured.
No more – and here are the four major reasons California is at such great risk.
4. California’s Infrastructure Deficit.
That vast State Water Project was designed for a population not much greater than 25 million. Today, on any one day, California verges on nearly 40 million people within its borders and is projected to reach 50 million if not higher.
In the last 50 years, however, California’s infrastructure needs have been ignored. Well, all the invading Mexicans need stuff.
The state’s water system remains essentially is as it was in the 1960s. As for its roads, a recent headline declared that “California’s roads are some of the poorest in the nation and rapidly getting worse.”
According to a 2017 infrastructure report card:
“Driving on roads in need of repair in California costs each driver $844 per year, and 5.5% of bridges are rated structurally deficient. Drinking water needs in California are an estimated $44.5 billion, and wastewater needs total $26.2 billion. 678 dams are considered to be high-hazard potential. The state’s schools have an estimated capital expenditure gap of $3.2 billion.”
In 2017, California’s Governor Jerry Brown estimated California was “facing $187 billion in unmet infrastructure needs.” However, the Bay Area Council Economic Institute “pegs the cost of California’s unfunded infrastructure needs at up to $737 billion and possibly as much as $765 billion.” Who is right? It’s hard to know but all of those figures are more than daunting.
3. Government Debt.
How much in debt are the California governments? That’s hard to know too. According to a January 2017 study, “California state and local governments owe $1.3 trillion as of June 30, 2015.” The study was based on “a review of federal, state and local financial disclosures.”
In other words, that $1.3 trillion in debt is the amount to which California governments admit. Other studies believe it to be more. Indeed, one study says it is actually $2.3 trillion and a recent Hoover Institute stated that there is over $1 trillion in pension liability alone or $76,884 per household. Incredibly, there are 4 million current pension beneficiaries, a number that continues to grow and which exceeds the total population of 22 states.
What’s the right number? Apparently, it is so large it is hard to accurately estimate. In every case, the number is staggering.
2. California’s Taxes and Regulations.
When you consider the California legal system and its regulatory system, inclusive of the world’s most comprehensive g****l w*****g law, California is likely the most regulated state in the Country, if not the World.
California also is among the highest taxed states in the nation. California has the highest income tax rates. The top rate is 13.3%. The next closest top tax rate is in Oregon at 9.9%. However, Oregon does not have a sales tax. California has the 5th highest sales tax.
What is remarkable about the California income tax isn’t just that it has the highest rate, it is how little income it takes, just above $52,000, to qualify for California rate of 9.3%. Given the high cost of living in California, that means many Californians are subject to that rate.
On the other hand, for more than a decade, less than 150,000 of California’s 35+ million people pay half of all of its income tax – a highly imbalanced system.
Now, many might think California needs all of those taxes given its infrastructure deficit and debt. The problem with that notion is that those prolonged high taxes, debt burden and regulations limit California’s economic future. After all, why would businesses locate in California in the future with the impending tax-aggeddon that must be in the offing?
Also, California’s middle class has been hollowed. A recent CNBC headline read: "Californians fed up with housing costs and taxes are fleeing the state in big numbers." Where are they going? Many have left for low tax states offering more jobs than California.
They have been replaced by those taking advantage of California’s magnet government policies, which increase California’s long-term spending needs. For those that remain, according to Smartasset.com "California has the highest debt-to-income ratio in the country.”
Little wonder, the demographer Joel Kotkin concluded that “the state is run for the very rich, the very poor, and the public employees.” It is also how California found itself with the worst poverty problem and why “California ranks dead last among U.S. states in quality of life, according to a study by U.S. News.”
All of which brings us to the number one reason California is not sustainable.
1. The California Governments.
You would think all of the above would have government officials deeply worried. So much so that they would cut back everywhere they could. If you thought that, you would be wrong – very wrong.
California spends nearly $200 billion a year on budget and even more off-budget in the form of programs paid with bonds, i.e. debt financing. As for the pension debt, of that nearly $200 billion, in the most recent budget less than $2 billion was allocated to paying down that pension debt. More than that was spent this year on a high-speed rail project currently estimated to cost $70 billion and which no one seems to want.
Beyond that, as I wrote earlier, California is moving ever farther left and wants the nation to pay for it. The next generation of leaders, Gavin Newsom, Kevin de Leon, Xavier Becerra and Kamala Harris are significantly to the Left of the old (and “conservative” by comparison) Jerry Brown and Diane Feinstein. That new generation of leaders are supported by an influx of friendly v**ers who are replacing those that are leaving.
All of those leaders support the dozens of lawsuits brought by the Democrat Attorney General Xavier Becerra against the Trump Administration. Many describe those lawsuits as part of California Democrats resistance movement – a resistance designed to result in political gains more than policy benefits.
Gavin Newsom, Kevin de Leon, Xavier Becerra and Kamala Harris also support some form of significantly expanded healthcare benefits if not universal healthcare – which is estimated to cost as much as $400 billion a year (that is not a typo). All of them support the California magnet policies that attracted so many of those in California illegally. In fact, there is no indication that the next generation has any concern for the future debt. Instead, they support higher taxes.
What taxes will those be? Within a decade you can expect higher income taxes and sales taxes. There is always a movement afoot to do away with California’s landmark property tax protection known as Prop 13. You also can expect a service tax – a tax on lawyers and accountants as well as hairdressers and gardeners. That service tax would be on top of the existing income tax. Beyond all of that, sooner or later an asset tax will be proposed. California counties already collect an asset tax on businesses. Look for that to be proposed statewide as California lurches ever farther to the Left and if forced to confront future debt.
Is there a silver lining in this story?
If you are living in one of the 49 other states, you should learn from the lesson that is California. If you are living in California, there is always the lesson of how Michigan came to be governed by a more centrist government. Of course, that came after the failure of the prior government. For now, however, for all its concern for sustainable foods and products, California is on a high-speed rail to unsustainability.
PS. This shows how the Democrats can take a GOLD MINE and screw it up! Keep them in power and they will do this to all of America.
California is a place unlike any other on the Globe. It boasts perhaps the greatest natural resources of any state along with shining high-tech industries. However, like many good economic stories, government policies threaten its future.
Indeed, the Democrat-run government has made California unsustainable.
Of course, it wasn’t always this way. As the 1960s came to a close in California, it had a population of nearly twenty million. In the decade before, its economic strength afforded the construction of a vast State Water Project and higher education system that was the envy of the world. Matched with a majestic and trade-friendly coastline, along with visionary business leaders, California’s future seemed secured.
No more – and here are the four major reasons California is at such great risk.
4. California’s Infrastructure Deficit.
That vast State Water Project was designed for a population not much greater than 25 million. Today, on any one day, California verges on nearly 40 million people within its borders and is projected to reach 50 million if not higher.
In the last 50 years, however, California’s infrastructure needs have been ignored. Well, all the invading Mexicans need stuff.
The state’s water system remains essentially is as it was in the 1960s. As for its roads, a recent headline declared that “California’s roads are some of the poorest in the nation and rapidly getting worse.”
According to a 2017 infrastructure report card:
“Driving on roads in need of repair in California costs each driver $844 per year, and 5.5% of bridges are rated structurally deficient. Drinking water needs in California are an estimated $44.5 billion, and wastewater needs total $26.2 billion. 678 dams are considered to be high-hazard potential. The state’s schools have an estimated capital expenditure gap of $3.2 billion.”
In 2017, California’s Governor Jerry Brown estimated California was “facing $187 billion in unmet infrastructure needs.” However, the Bay Area Council Economic Institute “pegs the cost of California’s unfunded infrastructure needs at up to $737 billion and possibly as much as $765 billion.” Who is right? It’s hard to know but all of those figures are more than daunting.
3. Government Debt.
How much in debt are the California governments? That’s hard to know too. According to a January 2017 study, “California state and local governments owe $1.3 trillion as of June 30, 2015.” The study was based on “a review of federal, state and local financial disclosures.”
In other words, that $1.3 trillion in debt is the amount to which California governments admit. Other studies believe it to be more. Indeed, one study says it is actually $2.3 trillion and a recent Hoover Institute stated that there is over $1 trillion in pension liability alone or $76,884 per household. Incredibly, there are 4 million current pension beneficiaries, a number that continues to grow and which exceeds the total population of 22 states.
What’s the right number? Apparently, it is so large it is hard to accurately estimate. In every case, the number is staggering.
2. California’s Taxes and Regulations.
When you consider the California legal system and its regulatory system, inclusive of the world’s most comprehensive g****l w*****g law, California is likely the most regulated state in the Country, if not the World.
California also is among the highest taxed states in the nation. California has the highest income tax rates. The top rate is 13.3%. The next closest top tax rate is in Oregon at 9.9%. However, Oregon does not have a sales tax. California has the 5th highest sales tax.
What is remarkable about the California income tax isn’t just that it has the highest rate, it is how little income it takes, just above $52,000, to qualify for California rate of 9.3%. Given the high cost of living in California, that means many Californians are subject to that rate.
On the other hand, for more than a decade, less than 150,000 of California’s 35+ million people pay half of all of its income tax – a highly imbalanced system.
Now, many might think California needs all of those taxes given its infrastructure deficit and debt. The problem with that notion is that those prolonged high taxes, debt burden and regulations limit California’s economic future. After all, why would businesses locate in California in the future with the impending tax-aggeddon that must be in the offing?
Also, California’s middle class has been hollowed. A recent CNBC headline read: "Californians fed up with housing costs and taxes are fleeing the state in big numbers." Where are they going? Many have left for low tax states offering more jobs than California.
They have been replaced by those taking advantage of California’s magnet government policies, which increase California’s long-term spending needs. For those that remain, according to Smartasset.com "California has the highest debt-to-income ratio in the country.”
Little wonder, the demographer Joel Kotkin concluded that “the state is run for the very rich, the very poor, and the public employees.” It is also how California found itself with the worst poverty problem and why “California ranks dead last among U.S. states in quality of life, according to a study by U.S. News.”
All of which brings us to the number one reason California is not sustainable.
1. The California Governments.
You would think all of the above would have government officials deeply worried. So much so that they would cut back everywhere they could. If you thought that, you would be wrong – very wrong.
California spends nearly $200 billion a year on budget and even more off-budget in the form of programs paid with bonds, i.e. debt financing. As for the pension debt, of that nearly $200 billion, in the most recent budget less than $2 billion was allocated to paying down that pension debt. More than that was spent this year on a high-speed rail project currently estimated to cost $70 billion and which no one seems to want.
Beyond that, as I wrote earlier, California is moving ever farther left and wants the nation to pay for it. The next generation of leaders, Gavin Newsom, Kevin de Leon, Xavier Becerra and Kamala Harris are significantly to the Left of the old (and “conservative” by comparison) Jerry Brown and Diane Feinstein. That new generation of leaders are supported by an influx of friendly v**ers who are replacing those that are leaving.
All of those leaders support the dozens of lawsuits brought by the Democrat Attorney General Xavier Becerra against the Trump Administration. Many describe those lawsuits as part of California Democrats resistance movement – a resistance designed to result in political gains more than policy benefits.
Gavin Newsom, Kevin de Leon, Xavier Becerra and Kamala Harris also support some form of significantly expanded healthcare benefits if not universal healthcare – which is estimated to cost as much as $400 billion a year (that is not a typo). All of them support the California magnet policies that attracted so many of those in California illegally. In fact, there is no indication that the next generation has any concern for the future debt. Instead, they support higher taxes.
What taxes will those be? Within a decade you can expect higher income taxes and sales taxes. There is always a movement afoot to do away with California’s landmark property tax protection known as Prop 13. You also can expect a service tax – a tax on lawyers and accountants as well as hairdressers and gardeners. That service tax would be on top of the existing income tax. Beyond all of that, sooner or later an asset tax will be proposed. California counties already collect an asset tax on businesses. Look for that to be proposed statewide as California lurches ever farther to the Left and if forced to confront future debt.
Is there a silver lining in this story?
If you are living in one of the 49 other states, you should learn from the lesson that is California. If you are living in California, there is always the lesson of how Michigan came to be governed by a more centrist government. Of course, that came after the failure of the prior government. For now, however, for all its concern for sustainable foods and products, California is on a high-speed rail to unsustainability.
PS. This shows how the Democrats can take a GOLD MINE and screw it up! Keep them in power and they will do this to all of America.
Sep 2, 2019 10:18:50 #
MR Mister wrote:
The Top Four Reasons California Is Unsustainable b... (show quote)
Truly sad --- c****efornia used to be a beautiful place to live --- glad I left in 1974 !!!!!!
Sep 2, 2019 11:17:59 #
TrueAmerican wrote:
Truly sad --- c****efornia used to be a beautiful place to live --- glad I left in 1974 !!!!!!
Same here! Lived there 31 years, owned a house, and business. Taxed and regulated to death, sold all left.
Sep 2, 2019 11:34:27 #
MR Mister wrote:
The Top Four Reasons California Is Unsustainable b... (show quote)
Wow I never realized this about California I know plenty of people who live in CA. I have sent a message to all of them get out of CA and move to Texas where there murdering there people in the streets. Texas is officially a war zone that got to be better than CA.
Will you people please stop these BS post and get to the facts .
Sep 2, 2019 11:45:30 #
Airforceone wrote:
Wow I never realized this about California I know plenty of people who live in CA. I have sent a message to all of them get out of CA and move to Texas where there murdering there people in the streets. Texas is officially a war zone that got to be better than CA.
Will you people please stop these BS post and get to the facts .
Will you people please stop these BS post and get to the facts .
The shooting are perpetrated by your lefties to destroy the Constitution. Seems k*****g a hundred or two is worth it to you. Your gang will k**l until you get your way. And blame it on Trump and maybe to can k**l two birds with one stone.
Sep 2, 2019 12:44:03 #
JFlorio
Loc: Seminole Florida
Airforceone wrote:
Wow I never realized this about California I know plenty of people who live in CA. I have sent a message to all of them get out of CA and move to Texas where there murdering there people in the streets. Texas is officially a war zone that got to be better than CA.
Will you people please stop these BS post and get to the facts .
Will you people please stop these BS post and get to the facts .
Well I see the cowardly OPP drunk has stuck his stupid nose in again. You don't have to prove to us every thread you are stupid. We all know it.
Sep 2, 2019 15:04:13 #
I live in Los Angeles. By e******n 2020 there may not be a California left.
a lady I worked for in the 90's told me that Mexican-to-California illegal immigration was a way to get California "back".
1. By anchoring babies and stealing jobs and mustering Spanish as a first language.
2. by importing one illegal fence hopper who has a lease or rental agreement. he pays under the table for two illegal Visa working immigrants to stay with him.
3. In time those others end up living at the poverty line with poor relatives who came running the minute they found out where they lived. Gangs ransom them in Mexican border towns.
4. Or one lucky person working for years with relatives working under the table.
5. One person in the family works with f**ed or stolen social security numbers, and three household members living on food stamps.
6. People in the family end up dead or in jail, while one one person in an apt with ten people living there using the social security number legally.
The remaining "job h****rs" will take any job and do any thing to make money. drugs manufacture and t***sportation and delivery, chop shops, shoplifting rings.
they viewed history as having c***ted Mexico out of land grants and we're moving subtly through emigration waves to get it "back".
her father was a Mexican i*****l i*******t, hadn't paid income taxes for the last 26 years. He enjoyed celebrity as an artist but wasn't interested in paying the costs due.
Those kind of people wouldn't want to join the California that exists today. The govt megaphones talk in the press about politics, but in gestures and statements that don't have any traction in street level existence.
a lady I worked for in the 90's told me that Mexican-to-California illegal immigration was a way to get California "back".
1. By anchoring babies and stealing jobs and mustering Spanish as a first language.
2. by importing one illegal fence hopper who has a lease or rental agreement. he pays under the table for two illegal Visa working immigrants to stay with him.
3. In time those others end up living at the poverty line with poor relatives who came running the minute they found out where they lived. Gangs ransom them in Mexican border towns.
4. Or one lucky person working for years with relatives working under the table.
5. One person in the family works with f**ed or stolen social security numbers, and three household members living on food stamps.
6. People in the family end up dead or in jail, while one one person in an apt with ten people living there using the social security number legally.
The remaining "job h****rs" will take any job and do any thing to make money. drugs manufacture and t***sportation and delivery, chop shops, shoplifting rings.
they viewed history as having c***ted Mexico out of land grants and we're moving subtly through emigration waves to get it "back".
her father was a Mexican i*****l i*******t, hadn't paid income taxes for the last 26 years. He enjoyed celebrity as an artist but wasn't interested in paying the costs due.
Those kind of people wouldn't want to join the California that exists today. The govt megaphones talk in the press about politics, but in gestures and statements that don't have any traction in street level existence.
Sep 2, 2019 16:03:48 #
MR Mister wrote:
The Top Four Reasons California Is Unsustainable b... (show quote)
Wow, all that crap is horrible, unbelievably bad..
such a mess, it is as bad as going bankrupt owning a casino..
Seems impossible, but some have done it..
But as near everyone knows, your post spins the California world so badly that no one will believe you..
Find something better to stir us up about..
How about those North Korea missile testing?? and new Submarine..
Gosh, now Iran may want trump to allow all that before talks began..
Sep 3, 2019 05:16:23 #
Airforceone wrote:
Wow I never realized this about California I know plenty of people who live in CA. I have sent a message to all of them get out of CA and move to Texas where there murdering there people in the streets. Texas is officially a war zone that got to be better than CA.
Will you people please stop these BS post and get to the facts .
Will you people please stop these BS post and get to the facts .
That shooter was messed up.
He had been on his roof shooting at animals.
Got fired that morning and went cuckoo!
Sep 3, 2019 09:10:26 #
jimpack123
Loc: wisconsin
Tug484 wrote:
That shooter was messed up.
He had been on his roof shooting at animals.
Got fired that morning and went cuckoo!
He had been on his roof shooting at animals.
Got fired that morning and went cuckoo!
My question is if so many people have guns in Texas why didn't they defend themselves? Perhaps more guns isn't the answer after all
Sep 3, 2019 09:40:26 #
JFlorio
Loc: Seminole Florida
jimpack123 wrote:
My question is if so many people have guns in Texas why didn't they defend themselves? Perhaps more guns isn't the answer after all
Another stupid statement.
Sep 3, 2019 09:54:45 #
permafrost wrote:
Wow, all that crap is horrible, unbelievably bad..
such a mess, it is as bad as going bankrupt owning a casino..
Seems impossible, but some have done it..
But as near everyone knows, your post spins the California world so badly that no one will believe you..
Find something better to stir us up about..
How about those North Korea missile testing?? and new Submarine..
Gosh, now Iran may want trump to allow all that before talks began..
such a mess, it is as bad as going bankrupt owning a casino..
Seems impossible, but some have done it..
But as near everyone knows, your post spins the California world so badly that no one will believe you..
Find something better to stir us up about..
How about those North Korea missile testing?? and new Submarine..
Gosh, now Iran may want trump to allow all that before talks began..
Do you live in that rat hole, seems it struck a nerve on you.
I also see the t***h is not something you like.
Sep 3, 2019 09:58:35 #
jimpack123 wrote:
My question is if so many people have guns in Texas why didn't they defend themselves? Perhaps more guns isn't the answer after all
Only a very few carry guns. Plus, if someone walks up to you and shoot you before you realize what is going on, plus if the shooter is in a moving car you will not see him at all.
What is needed is to lock up all the crazies. That will have a big effect.
Sep 3, 2019 11:24:07 #
MR Mister wrote:
Do you live in that rat hole, seems it struck a nerve on you.
I also see the t***h is not something you like.
I also see the t***h is not something you like.
I live for t***h, justice and the American way..
It must be you who does not know t***h as it stares you in the eye..
Where do I live? On 45 acres overlooking a large lake in northern Minnesota..
Most call it a very lovely place and for me it is great.. I love it..
Owned my own little business for years before retirement in 2003.. Disability per the SS... pulled the pin early..
Kids.. one Lawyer, one money and paper mover for the U of MN.. and my little girl tries to feed to world with wholesome food of eastern Europe origin and goats to those wishing, hogs to real Minnesotans..
Next two generations looking good also..
Now tell me about yourself, so when we trade insults we can know who we type at..
Have a nice day.. beautiful up in this neck of the woods.. near 70 degrees and sunny skies..
Sep 3, 2019 19:47:57 #
jimpack123 wrote:
My question is if so many people have guns in Texas why didn't they defend themselves? Perhaps more guns isn't the answer after all
I've thought about that.
Well, he pulled up beside a car at a red light.
He shoots into car next to him.
The person is either dead or wounded.
That has to be a shock and not easy to react to quickly.
He moves on and next victim doesn't know what's coming.
The only one I heard that looked and saw the gun was able to get around two cars.
The two cars parted and he was still after her.
She got off at University Blvd. to zig zag through residential to try to evade him.
He stayed at red light at that point and got his next victim.
He was all over the place.
Now the death toll is seven and one was an Ector County student.
I'm glad he was stopped before he got into Cinergy.
It's a bowling alley and movie complex.
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