CA is 24 billion dollars in the red for fiscal 2001.
Basically during the dot.com boom, the state made BILLIONS AND BILLIONS from people cashing out their stock options and paying capital gains taxes on it. So of course, the govt used all that money to hire tons of new govt employees and start govt social programs, build baseball stadiums, etc. They spent every penny of it.
When the market crashed, nobody is paying capital gains taxes anymore, and everyone is being laid off (including yours truly) so they're not getting jack from payroll taxes.
Yet they still have all those newly hired govt employees to pay, and as you all know, nobody ever gets fired from a government job, EVER, unless they show up at work shooting people..
So basically CA is fucked, no two ways about it.
Recently they have been mailing tax letters to people who moved out of state, demanding taxes on "estimated" income that you are no longer paying since you don't work there or live there (if anyone here receives one of these "demands", don't freak out, even if it says you owe the State of CA tens of thousands of dollars. If you owe nothing, just fill out the form and enter 'nil' for income and send it back)
That is a measure of how desperate they are.
Next thing will be a huge increase in property tax, as they can more easily squeeze money from people still living in the state who have an asset that can be seized.
All of this of course means Bay Area real estate prices are going to keep skyrocketing! Ra! I've already purchased my piece of land
Car Key Boi