California is broke -- more broke than most states in absolute numbers because we're upside down by $25 billion. Citizens of California pay more tax than any other state in the union when you combine state sales tax, excise taxes (on gasoline, etc.) and personal income and property taxes. The governor proposes that we prolong an emergency tax increase planned to sunset this year. It's not shocking that the tax increase didn't go to pay off anything. It was simply spent/squandered. The five year tax hike ($55 billion) appears to have the votes in the legislature to pass. (LINK for varying opinions)
By a show of hands, who thinks that the politicians will be responsible with this $55 billion and will balance the state budget by 2016?
California has a state budget of $86.6 billion for FY 2010-11. That is roughly equal to the ENTIRE military budget of the People's Republic of China for the same period.