i live in california and love it...i think in so many ways it is the best place in the world to live...but i must admit (with trepidation since i hold so many state bonds)...that the state is doomed.

the size of the fiscal crisis here is not "state size", its "nation size". but california cannot engage in printing money, deficits, or anything else a nation can do to temporarily ease through. tax revenues are dropping like a rock in every city in the state as EVERYONE lines up to get their house re-assessed to get lower taxes.

california was crushed in the housing bubble and prop 13 makes revenue collection even more inflexible. i personally intend to have my property taxes cut in HALF, which is actually accurate and fair given that houses on my street are now...half off. whatever happens i will be paying less in taxes by some amount. now repeat for tens of millions of people...

and there's no stock market windfall to offset the gloom. google and apple are just high-salary employers now. that won't save this state. suffice to say i think the state finances are in doomsday mode. thankfully my kids do not go to public schools...