June 23, 2003

A state-by-state analysis of how state governments are handling taxing & spending during the current lean years.

Here is the report for California:

Fiscal management: Poor

Annual spending change: +9.1%

Annual tax rate change: -1.0%

2002 budget: $133.1 billion

The state borrowed $11 billion last week to cover its 2003 deficit. It will borrow another $2 billion to make a required contribution to the state employees' retirement system. Democrats, who control the Legislature and the governor's mansion, have been spending $1 billion a month more than the state takes in for two years.

Posted by Greg Ransom