With all the headlines about billionaires fleeing California because of a proposed — and self-harming — wealth tax, our disastrous state budget has escaped the grim headlines it merits. As Gov. Gavin Newsom prepares his 2028 presidential run, he leaves California in a precarious financial position. We are stuck in a spiral of structural deficits that new tax revenue cannot fix.
But bankruptcy can. It’s a feasible, albeit long-shot, solution that offers the state a chance to halt its budget meltdown — something California’s current political leadership has not had the courage to do.
Spending under Newsom has exploded (opens in new tab). In Jerry Brown’s last year as governor, the state’s general fund spent $142 billion (opens…