Quite a few things to report on from the Bronze Golden State.
First, the budget was signed by Governor Jerry Brown. The budget only “works” if voters approve the new taxes he proposed and that will be on the November ballot. However, if a competing measure proposed by activist Molly Munger passes (or if neither passes), there will be major problems with California’s budget.
One of the budget “trailer” bills changed the placement of measures on the ballot, and moves Governor Brown’s tax proposal to the top (with others falling underneath). Molly Munger has sued the California Secretary of State stating that you can’t change the rules in the middle of the game.
Even if a tax increase passes at the ballot box–and that’s definitely uncertain–taxes almost never bring in the money that politicians think they will. Individuals modify their behavior. California continues to drive businesses out of state (like mine), and the fix is one that is anathema to Democrats in Sacramento: Regulations and taxes must be cut, not increased, to make California more competitive economically with other states.
If I were a development officer in Arizona, Nevada, Colorado, Texas, or Utah, I’d be ready to make some phone calls as there will likely be plenty of businesses ready to head east.