In what can only be described as gross fiscal mismanagement, California must now deal with a state budget deficit of as much as $58 billion in the next fiscal year and ongoing deficits of about $30 billion through 2028. Since California must balance its state budget, this means deferring planned spending until later years, using $18 billion in reserves, and considering new tax proposals. But California is already ranked as having the third-worst tax climate in the country, behind only New York and New Jersey. California, New York, and New Jersey also rank first, second, and fourth, respectively, among states losing the largest numbers of residents last year, and future tax increases will almost certainly lead to more people leaving California.

California’s fiscal mess is self-inflicted. State spending is too high, previous budgets prioritized the wrong items, and tens of billions have been wasted in the process. Just a year and a half ago, California’s state government was awash in funds from $600 billion of federal COVID relief and extremely high tax payments from the state’s highest earners, many of whom paid over $1 million in personal state income taxes. Temporarily high funding led California to increase its state budget way too much, particularly in a state that is shrinking. Between 2019 and 2023, California’s population declined by about 472,000, yet the 2022–23 budget increased by 43 percent over its 2019–20 level, with a budget press release that led off with “Cha-ching!”

The 2022–23 budget ballooned to $308 billion, over $23,000 per household. There seemed to be cash for every political agenda,........

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