California dreaming is becoming a catastrophe

barrons cover. california

The upshot of all this? First, while the budget agreement is clearly a relief after weeks of gloom, it hardly puts an end to the fiscal problems of America’s largest state. California officials must do more — much more — and that includes making serious efforts to stabilize the state’s unusually volatile tax base. They may even need to convene a constitutional convention and undo some ill-considered tax provisions adopted over the years through voter referendums.