The biggest economy in the U.S. is turning around, which could mean good news for the overall national economy.
"About half all the new jobs created in the United States in the last year were in California,” says Bill Lockyer, California's Treasurer.
The unemployment rate in the Golden State is still well above the national average — 10.1% compared to 7.7% — but it’s far below the state’s 11.5% rate a year ago.
In other good news, the state reduced its $30 billion deficit to just under $2 billion.
“We’re actually getting the structural deficit resolved,” says Lockyer. “We’re seeing in the not-too-distant future long-term balanced budgets.”
Helping California reduce its deficit is a tax increase that voters approved on Election Day. Prop 30 — as it’s known — raises the statewide sales tax by a quarter of a penny and increases income taxes for individuals earning more than $250,000 (over $500,000 forRead More »from America in Danger if California Goes Off Fiscal Cliff