California May Soon See A Recession: CalMatters

CALIFORNIA -- California may soon see a recession. That's what longtime journalist Dan Walters writes in CalMatters this week.

Walters wrote that a report by the Bureau of Economic Analysis indicated California had rough first and second quarters.

"California stumbled during the first half of 2017," Walters wrote. "California’s increase was an anemic six tenths of one percent in the first quarter compared to the same period of 2016, and 2.1 percent in the second quarter, well below the national rate and ranking 35th in the nation. The report revealed that almost every one of California’s major sectors fell behind national trends in the second quarter, with the most conspicuous laggard being manufacturing."

If California's economy continues to slide, the state budget would see the biggest hit, Walters wrote.

"It is highly dependent on income taxes paid by a handful of high-income Californians, particularly on their investment gains and particularly in the tech-heavy San Francisco Bay area," Walters wrote. "The last recession a decade ago revealed just how that dependency backfires in recession. The state is even more dependent now, thanks to voter-approved increases in marginal tax rates, so a new recession would have even harsher fiscal effects."

California's economy has slipped, according to an article by the Orange County Register.

"California had the 10th worst economic prospects among the states in August and 13th worst in September — the state’s lowest rankings since 2010," according to the article.

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