California is continuing to give out money without any idea of where that money is coming from as the Golden State continues to hurdle toward a massive financial wall under its Democratic monopoly on power.
California has pushed ahead with a $25-an-hour minimum wage for medical employees, including security guards and cleaning staff, despite opposition from the state’s Department of Finance.
Now we have an estimation of the cost from Gov. Gavin Newsom’s (D-CA) administration: $4 billion just in fiscal 2024-25, and the cost will only rise from there.
At the same time, Newsom has had to veto several bills citing potential costs, with California staring down a $14 billion budget deficit.
That number could continue to grow as California’s top-heavy tax system falls short of projections as people moving out of the state lead to a smaller and smaller tax pool.
This minimum wage hike also has no mechanism to allow the state to delay it, meaning California will have to barrel ahead and figure out what other programs to cut on the fly.
This feeds into the struggle the California government has had with cutting programs to address its budget deficit, with proposed cuts including housing, water storage, electric vehicles, transportation, and workforce development.
Now another rash and economically illiterate minimum wage law is going to require even more cuts as California Democrats slowly learn that they can’t just throw money at every issue they want with no consequences.
The problem is getting worse as California Democrats continue to drive the state into the ground. The state has a lower population now than it did in 2020.
Housing is unaffordable, and the cost of living continues to drive people to states such as Idaho, Texas, and Florida.
The continued departures cause the tax pool to shrink, meaning less revenue and more budget cuts. Much like its darling city of San Francisco, California is in a death spiral, and California Democrats have no plan to stop it.
The California Democratic Party is continuing to drive what should be the best state in the nation into the ground through incredible incompetence and irresponsible massive spending projects that are used to justify exorbitantly high taxes and overbearing regulations.
The monopoly on power by California Democrats has been a disaster for the Golden State, and the problem is only going to continue to become worse.