Hell, they didn't even compare debt per capita[1]. Seeing numbers like that into an opinion piece is the easiest way to know you're almost certainly being deliberately lied to.
In fact the whole idea of California being somehow spending irresponsibly is simply false. State budgets are high because state revenues are high, and it's been beating US aggregate growth numbers for most of the last century. Maybe there's a good case to be made that the end of this period is approaching and that the gravy train is slowing down. But that's an argument about second derivative. California is and remains extremely wealthy and has a comparatively well-managed state budget. Period.
> States with the Least Debt
> 1. Texas
>
> Texas has the lowest debt of any state in the U.S. Alaska's total liabilities add up to $222.64 billion, and its total assets add up to $356.01 billion, giving Texas the highest net position in the country of $115.08 billion. Texas's debt ratio is 62.5%
> ...
> 3. Alaska
> ...
> 5. Tennessee
> The economy of the State of California is the largest in the United States, with a $3.4 trillion gross state product (GSP) as of 2021. If California were a sovereign nation (2021), it would rank as the world's fifth largest economy, ahead of India and behind Germany.
Because debt-to-GDP doesn't make sense as a financial measure and most people don't understand it. CA economy is $3.4T, CA debt-to-GDP is 14.9%, the US Federal Debt to GDP is 133.9%, so the total debt to GDP on the revenue dollars in California is 148.8%.
If California were a country, it would rank 5th highest in the world in debt-to-GDP ratio right behind Japan, Venezuela, Sudan, Greece and Lebanon.
That said, debt-to-tax-revenue is a more useful financial measure. The total CA tax revenue (income, sales, corporate tax) is about $173B [1]. The debt-to-total-tax-revenue is 293%. Since we don't want to shut down Schools, Medicare, SNAP, Pensions & Unemployment, the debt-to-discretionary-expenses is even more dire at 704% limiting the ability of the state to make a dent in the debt payments without increasing taxes.
In effect, CA is neck deep in debt no matter how you look at it.
ajross|3 years ago
In fact the whole idea of California being somehow spending irresponsibly is simply false. State budgets are high because state revenues are high, and it's been beating US aggregate growth numbers for most of the last century. Maybe there's a good case to be made that the end of this period is approaching and that the gravy train is slowing down. But that's an argument about second derivative. California is and remains extremely wealthy and has a comparatively well-managed state budget. Period.
(I don't live there, btw.)
[1] Which per this link is almost dead-on average among US states at $3850: https://worldpopulationreview.com/state-rankings/debt-by-sta...
lkbm|3 years ago
Side bar and chart:
> Least Debt: Tennessee ($875.12)
List:
> States with the Least Debt > 1. Texas > > Texas has the lowest debt of any state in the U.S. Alaska's total liabilities add up to $222.64 billion, and its total assets add up to $356.01 billion, giving Texas the highest net position in the country of $115.08 billion. Texas's debt ratio is 62.5% > ... > 3. Alaska > ... > 5. Tennessee
WalterGR|3 years ago
> The economy of the State of California is the largest in the United States, with a $3.4 trillion gross state product (GSP) as of 2021. If California were a sovereign nation (2021), it would rank as the world's fifth largest economy, ahead of India and behind Germany.
https://en.wikipedia.org/wiki/Economy_of_California
redisman|3 years ago
divyekapoor|3 years ago
If California were a country, it would rank 5th highest in the world in debt-to-GDP ratio right behind Japan, Venezuela, Sudan, Greece and Lebanon.
That said, debt-to-tax-revenue is a more useful financial measure. The total CA tax revenue (income, sales, corporate tax) is about $173B [1]. The debt-to-total-tax-revenue is 293%. Since we don't want to shut down Schools, Medicare, SNAP, Pensions & Unemployment, the debt-to-discretionary-expenses is even more dire at 704% limiting the ability of the state to make a dent in the debt payments without increasing taxes.
In effect, CA is neck deep in debt no matter how you look at it.
[1] https://lao.ca.gov/Publications/Report/4448