Well, THAT was unforeseeable and unexpected.
One would think that the largest state in the union would have more accurate economists and accountants on hand so that this shortfall could have easily been avoided by simply not spending as much in order to match the predicted tax revenues.
But no. The California economists and accountants, whoever they were, simply failed to come up with accurate predictions.
So the next time you hear an economist say that the economy is recovering (for the Nth time), try to keep in mind this experience of California.
California evidently has the choice of either to raise taxes, resulting in driving even more taxpaying, jobs-producing business away, or suffer a bad debt rating, resulting in even more curtailed services. And unless the direction is changed, the rest of the nation may follow California's lead.
--No matter how often the economists preach the mantra of recovery just around the corner (light at the end of the tunnel, whatever).