Only 10 years ago, California’s general fund was $93 billion – adjusted for inflation, that’s $118 billion today, against the current actual budget of $300 billion. Meanwhile, California’s population has grown only modestly over the same period, from 38 million to 39 million. This means that inflation-adjusted per capita general fund spending in California has increased from $3,124 in 2013 to $6,023 today.
According to the state Department of Finance, roughly 49% of personal income tax collected by California in 2020 came from just 1% of tax filers.
Mr. Newsom intends to cover the shortfall with a patchwork of funding delays, spending reductions to programs and spending shifts. He also proposed trimming the state’s transportation and climate budgets.
If the upcoming year results in a recession, "delays" must become "cuts" Healthcare costs, Government Services all have been increasing faster than inflation. For example, the number of inmates has declined in the past 10 years, but today it costs an average of about $106,000 per year to incarcerate an inmate in prison in California. Since 2010-11, the average annual cost has increased by about $57,000 or about 117 percent.California has to decrease spending, a state that really has no room to increase taxes.