California Economy, State Finances Stronger than Other States
A new report that compares state finances finds California's budget revenues are soaring higher than all but one other state in the nation. Its economy is growing at an above-average pace as well. Ben Adler has more from Sacramento.
The study comes from the Tax Policy Center – a project of the Urban Institute and the Brookings Institution. It compares state tax revenues, economic growth and other data for all 50 states.
Among the findings: California tax revenues jumped by 35 percent from the first quarter of last year through the first quarter of this year. That’s second only to North Dakota and well ahead of third place Montana.
Some of those increases come from the voter approval of Proposition 30 last fall, but the state’s economic growth helped too. California’s gross domestic product rose 3.5 percent from 2011 to 2012. That’s tied for fifth-highest in the nation.
And the state’s unemployment rate also dropped faster than any other state – by more than two percent. But California still ties for the sixth-highest unemployment rate in the nation.