Los Angeles Mayor Karen Bass is currently seeking a state bailout, but given that the state says it has “no capacity” for new spending commitments, it’s unclear if the funding will materialize.
Mayor Karen Bass blamed the Trump administration and the economy for falling revenue…“Turmoil and uncertainty from Washington and a slowing economy are causing lower revenue projections.”
The State of California must borrow $3.44 billion dollars to cover a shortfall in Medi-Cal, the state’s Medcaid program — a year after expanding it to offer free health care to illegal aliens.
An audit commissioned by a federal judge found that a Los Angeles agency suffered incomplete documentation and insufficient financial accountability.
The EDD said that even without the debt incurred from the state’s pandemic response, which is the cause of the latest insolvency and tax hike, California would still have had to borrow money over the next few years.
The bleak numbers come as wealthy Californians have been leaving the state en masse, according to IRS and U.S. Census data, resulting in a loss of nearly $30 billion in taxable revenue in 2021 alone.
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