Economic warning signs are mounting in California — foreshadowing potentially tough budget decisions for the state officials and policymakers who emerge victorious from the Nov. 8 election.
One particularly eye-popping statistic: Just nine companies headquartered in the Golden State went public in the first three quarters of 2022, compared to 81 during the same period last year, according to a Bloomberg News analysis.
- As of Sept. 30, initial public offerings in California had raised just $177 million, compared to an average of $16 billion during the same period over the past five years.
- The $177 million figure represents just 2% of funds generated by U.S. companies that went public through the end of September. Last year at this time, California accounted for 39% of funds nationally.
- If this trend continues, it could spell an end to the streak California has maintained since 2003 of generating more IPOs than any other state.
“We are already seeing an immediate effect,” Brian Uhler, deputy legislative analyst for the state Legislative Analyst’s Office, told Bloomberg. “And it does appear to be significant,” contributing to a 5% decline in California employers’ income tax withholding payments in September compared to last year.
Indeed, California collected about $2.8 billion less in taxes in September than it thought it would, marking the third straight month of revenues coming in below projections,