This is why. http://www.flickr.com/photos/msaleem/3625313351/sizes/o/

Every special interest group has an open door in CA. They are most often open to many things that seem pretty 'off the wall' to those of us in the middle of the country. Example - They are the only state that has special requirements on gasoline because environmental groups pushed for more refining. Therefore, the price of gasoline will always be alittle higher to cover the extra processing of the fuel. There are many regulations that other states do not have. They are a more liberal state and try to accomidate everyone, but it does cost. I'm just returning after reading your bio page. Since you are in S.CA., you already know about the many regulations that are over and above what other states require. You could probably tell the rest of us why CA is in the hole and seems on the verge of bankruptsy all the time. All I know is, I have a cousin in S. CA and she wants out very badly.

The CA Legislature spends money like a shipload of drunken sailors. NOTHING is 'too expensive' for them. And since they're spending OUR Money, not their own, nothing is too good for them. The People they represent recognize that the Legislature is the problem, but they also seem to believe it's all the 'other district's' legislators that are the problem. 'Our guy' is always doing a 'fine job'. I don't know how to fix THAT.

First, the cost of living in California is way above the normal for the country. Second, earthquakes and forrest fires take a toll on their economy. Third, illegal immigrants are bankrupting California by means of emergency medical treatments and healthcare. Thats the one, two, three reasons California is on the brink of bankruptcy. The Federal Government can help in one and two. its too late for number three. The Federal Government should have addressed this problem years ago, when it first started.

Well the voters have a say so in this crisis, elect "new" reps and "fire the old ones for letting the state get in the mess. Also the state can lower taxes on companies so the companies will stay in the state.

What?!!? Even with the Governator and all that?

The basic problem in California is that the constitution is built in a strange way -- by initiative. That is, lots and lots of amendments have been added to the constitution by public ballot, and those amendments often constrain the legislature and governor in ways that have unforseen side-effects. Because the legislature has been disempowered by the constitution in large measure (because the people have distrusted the legislature and overused constitutional amendments to express their distrust), they simply have a lot of difficulty coming up with a budget that works. There is a move afoot for yet another revamping of the constitution (this has happened many times) in response to the current budget crisis. I'm not betting it will solve the problem any more than the previous efforts. More details about the CA constitution are available online, of course, there's even a Wikipedia article which cites it as one of the longest such documents in the world: http://en.wikipedia.org/wiki/California_Constitution

Proposition 13 basically destroyed the government's ability to collect a reasonable parcel tax on land owned by corporations. This has resulted in the loss of billions of dollars in corporate taxes over the years due to a loophole that allows corporations to buy a corporation that owns land without the land value re-adjusting.

On the revenue side: California's revenue collection is too lumpy. It goes through unpredictable boom and bust cycles. Thes reason for this is a steeply progressive tax system, which relies heavily on the state's highest earners and on capital gains taxes -- both of which vary wildly. California needs to smooth its revenues, by flattening its taxation (in income, cap gains, and other forms) On the spending side: this seemingly-intractible problem comes from four factors. 1) Powerful public employees' unions with grossly-overpaid members. When a high-school grad (like a prison guard) can earn $120k, something's terribly wrong. 2) A horribly-run k-12 educational system, overpopulated with "special needs" teachers and administrators. 3) A health-welfare system that demonstrates with crystal clarity why the State should be as far from healthcare as possible. This year, CA has budgeted $41 billion to health care. That is enough to buy EVERYONE in the state basic health insurance. In-home care for everybody imaginable, top-notch healthcare for prisoners, etc. 4) A large population of illegal aliens, sucking much more from the State than they contribute. (As much as this is a hot-button issue, it is not nearly as big a problem as the other three.)

It's the darn dogs gettin thier nails painted. Only special people can do such a job.