Stupid California Cost Itself $600 Million Over Stupid Facebook IPO

Illustration for article titled Stupid California Cost Itself $600 Million Over Stupid Facebook IPO

It's generally a bad idea to base your budget on hypothetical money that may or may not end up in your pocket. It's a much worse idea if you're the state of California, and that money is wacky Facebook cash.

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The Wall Street Journal reports California is facing a $600 millon hole in its 2013 spending after Facebook's stock bombed. California Gov. Jerry Brown expected to make some nice juicy money from taxing sales of the stock, which arrived at $38 per share and now hovers around $30. A lower share price means lower taxes, which means the state won't have as much money to spend, which means Gov. Jerry Brown probably won't count on money from notoriously dicey tech IPOs in the future. We hope. Thanks for taking textbooks off the desks of public school students, Zuck. [WSJ via Venturebeat]

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DISCUSSION

donthasslethehoff2
donthasslethehoff2

This is the stupidity of CA politicians for the world to see. The CA legislature and assembly voted for this budget and Brown signed it. All parties claimed it was balanced. The actual budget hole left in 2012 is $24 billion. Tricks like inserting estimated tax revenue of a company and having the budget count on that revenue isn't just the height of stupidity - it's terrible leadership, bad governance and further show that CA still does not have an adult in the room politically.