San Diego City and the State of California are in Real Bad Shape
San Diego California
Well, if you are a regular reader of this blog you know what a hit our housing market has taken. But, do you also know how bad San Diego’s finances really are?
Professors say that state pension fund as presently set up have only a 1 in 20 chance of paying their obligations 15 years from now, according to Barron’s.
California Dreaming
California
A recent Field poll found Californians downright pessimistic about their state’s financial outlook, with 95 percent of the 1,232 respondents stating the economy was undergoing bad times and 60 percent reporting that their personal well-being had worsened over the previous 12 months. This 12-month streak of negativity was the longest since 1984. A mere 29 percent of the Field Poll respondents anticipate that the state’s economic fortunes will improve in the next 12 months.
California lawyers
California Leading The Way In Budget Shortfalls
California real estate
44 states are facing budget shortfalls. California is leading the way as it is expected to spend 50% more than it will generate this year.
Now that is a really scary thought. Since 2007 US states have collectively spent 300 billion more than they have generated. These deficits mean higher taxes and so far 33 states have raised taxes, but collections have plummeted to their worst levels in 46 years; you cannot squeeze water out of a rock. No jobs means no revenues but states are selling new bonds at record rates to raise funds. It’s a recipe for long term disaster.
San Jose California real estate lawyers
Californians Pack Their Bags for Other States
According to census estimates the number of people leaving California for another state outstripped the number moving in from another state during the year ending on July 1, 2008. California lost a net total of 144,000 people during that period — more than any other state.
Not to worry; California will not be empty any time soon. Actually, California continues to increase in overall population because of births and immigration, legal and illegal. It is the fourth consecutive year that more residents have left from California for other states than arrived in California from within the United States.
Why are are they moving?
#1. California's unemployment rate hit 8.4 percent in November, the third-highest in the nation, and it is expected to get worse.
#2. A record number of home foreclosures.
#3. Personal income was flat last year.
#4. A $41.6 billion budget hole over 18 months, have residents bracing for higher taxes, cuts in education and postponed tax rebates.
#5. Office vacancy rates in San Diego and San Jose surpass the 10.2 percent national average.
#6. Median housing prices have nose-dived one-third from a 2006 peak, but many homes are still out of reach for middle-class families. San Diego real estate agents