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California Is Awash in Cash, Thanks to a Booming Market


California Is Awash in Cash, Thanks to a Booming Market
In a single year, the state’s financial outlook has gone from surplus to deficit to surplus as capital gains tax collections have risen amid a soaring stock market and I.P.O. boom.
Gov. Gavin Newsom giving the State of the State address at Dodger Stadium in Los Angeles last month.Credit.Patrick T. Fallon/Agence France-Presse Getty Images
Published April 28, 2021Updated May 11, 2021
As the pandemic raged last May, California was reeling. Spending on unemployment assistance and health care had jumped, while tax revenues were on the verge of cratering. State officials, just months earlier counting on a $5.6 billion budget surplus, now anticipated a $54 billion shortfall. Severe cuts would be needed, making an already frightening recession even worse. ....

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