I think the random section about NY is irrelevant, but CA’s highly volatile tax revenue system, its long-term financial liabilities and how these two things intersect w/ the tech industry and land-use are mostly spot on.https://link.medium.com/gV9cFzLnZU
-
Show this thread
-
Replying to @kimmaicutler
There are insightful points here, but the entire piece seems to assume that California is economically just Silicon Valley, which isn’t true, either from a GDP or tax revenue standpoint...
1 reply 0 retweets 6 likes -
Replying to @adamnash
The Bay Area is close to 40% of the personal income tax revenue for the entire state of California even though we are 16.8% of the state population. It's not actually that far off.... https://lao.ca.gov/reports/2016/3507/Fiscal-outlook-111616.pdf …
1 reply 2 retweets 7 likes -
Replying to @kimmaicutler
No question SV continues to outpace the state. But if 40% dropped 10%, it’s just 4%. That’s all I’m saying. Certainly the pension obligations created in the state are not mostly in the Bay Area. We are certainly the most cyclical portion of the state, that’s for sure.
1 reply 1 retweet 3 likes -
Replying to @adamnash
4% would be the entirety of California state government funding to the University of California system.
1 reply 0 retweets 4 likes -
Replying to @kimmaicutler @adamnash
Or close to 1/10th of the entire K-12 budget.
2 replies 0 retweets 2 likes -
Replying to @kimmaicutler
10% would be a depression like we haven’t seen since the 1930s. Poor choice of a round number.
1 reply 0 retweets 0 likes -
Replying to @adamnash
Actually, this happens like... literally every 10 years. Remember our $41B deficit in 2009?https://www.nytimes.com/2009/02/17/us/17cali.html …
2 replies 0 retweets 2 likes -
Replying to @kimmaicutler
Yes, but this is pretty divorced from the scenario in the original post. In 2009, it was a statewide issue (other areas of the state were hit much harder). No argument from me on the cyclicality of CA revenue. We depend too much on cap gains.
1 reply 0 retweets 0 likes
Kim-Mai Cutler Retweeted John Myers
Yeah, this video explains it:https://twitter.com/johnmyers/status/731191553301975040 …
Kim-Mai Cutler added,
-
-
Thanks. Twitter will use this to make your timeline better. UndoUndo
-
-
-
Thanks. Twitter will use this to make your timeline better. UndoUndo
-
Loading seems to be taking a while.
Twitter may be over capacity or experiencing a momentary hiccup. Try again or visit Twitter Status for more information.
