It turns out that California's budget gap is only 16th largest percentage-wise

[○∙◄☻¥tπ[╪AV┼cVê└]

Clearly if we were a conservative state like Arizona, we wouldn't have these problems.

[I spent the winter writing songs about getting better]

Wrong board.

[Sbane]

"OMGZ California is collapsing. I can't wait to move to a real murican state like Arizona or Nevada. Those Mexicans have ruined California!!!!!1111111111"
[/average city data forumite]

[phk]

%'s are irrelevant. Its the absolute dollar amount that matters.

[Sbane]

%'s are irrelevant. Its the absolute dollar amount that matters.

The more revenue and expenses you have, the easier it gets to cut big amounts. For example, $12 Billion are slated to be cut from the budget this year, and obviously the state is still spending a good amount. Many states don't even have a budget that big.

Or does it have something to do with the bond market, and how it reacts to state debt?

[Small Business Owner of Any Repute]

%'s are irrelevant. Its the absolute dollar amount that matters.

Both matter.

[frihetsivrare]

Actually I expected Nevada and Arizona to be worse than California.  They have more retirees who aren't paying as much in taxes and are taking more services.  To add, industries that dominate the two states are the most prone to downturns during economic hardship, which results in less tax revenue.

[Brittain33]

Actually I expected Nevada and Arizona to be worse than California.  They have more retirees who aren't paying as much in taxes and are taking more services.  To add, industries that dominate the two states are the most prone to downturns during economic hardship, which results in less tax revenue.

Retirees don't cost state governments much for services; that falls on the feds.

[Associate Justice PiT]

Actually I expected Nevada and Arizona to be worse than California.  They have more retirees who aren't paying as much in taxes and are taking more services.  To add, industries that dominate the two states are the most prone to downturns during economic hardship, which results in less tax revenue.

Retirees don't cost state governments much for services; that falls on the feds.

     Though they would probably still be paying less in taxes.