California has the worst bond rating in the nation, hovering just above junk bond status.  A lower bond rating means higher interest rates when selling bonds – and California already spends $10 billion per year in bond principal and interest repayments.

In this, as in many other things, California leads the nation, for better or for worse (repaying the money borrowed for President Obama’s Stimulus will cost every American $280 a month for life).

Some people place a portion of California’s debt problem at the feet of voters who approve nearly every bond initiative, from $3 billion for an embryonic stem cell research bond to $10 billion in debt to build a high-speed rail system.

It’s hard to blame citizens of the Golden State for voting for debt when the most famous Californian, Governor Arnold Schwarzenegger, proclaims bonds “a gift from the future.”  It’s also hard to blame voters for approving bonds when the bond ballot descriptions and arguments are chock full of shaky claims.

Take November 2008’s much promoted High-Speed Rail Initiative, Proposition 1A.  Voters approved it by 52-48 after proponents, such as train manufacturers and unions poured $2.5 million into the effort.  As with almost every bond measure, there was no funded opposition.  The measure’s proponents, big business and labor unions, claimed that the trains would offer time-saving travel “AT A CHEAPER COST!” than air travel or car.  And that, the train would, “give Californians a real alternative to skyrocketing gasoline prices and dependence on foreign oil while reducing greenhouse gases. Building high-speed rail is cheaper than expanding highways and airports to meet California’s population growth.”

Really?  Who checks these claims?
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Reagan famously said that Republicans believe everyday is the 4^th of July and the Democrats believe everyday is April 15^th.  An oversimplification to be sure, but that sentiment was not far from the minds of the Massachusetts voters.  Already laboring under a bad state imposed health care system, in spectacular fashion, they rejected ObamaCare and elected Scott Brown to a “people’s seat.”

In California, that lesson apparently went unnoticed for California Democrats.   Less than 48 hours after the dust settled from the Brown triumph, California Democrats voted for a State imposed “universal” health care plan.  In other words, a state run health care system that would bar private insurance.

Keep in mind that California is already amidst a chronic and prolonged budget crisis brought on by runaway spending and exorbitant taxing.   Perennially listed among the worst states in our Union to do business, California features 10%+ income taxes and the highest regulatory burden around.  So imposing are the costs to business in California, despite its ports and natural resources, Nevada and its desert is #1 in the Country in new business development.

As Congressman Tom McClintock famously says, only government policy could convince people and business to relocate from lush California to the barren deserts of Nevada.  The practical result of those anti-job polices is that California now has a revenue problem.  Just 3 years ago revenues were in the $125 billion dollar range.  Now they are in the $85+ billion dollar range.  In other words, government has created a revenue problem by killing off jobs and, without those jobs, there are less taxpayers, less income tax and less sales tax.

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