Budget

Since the 1978 passage of Proposition 13, California has exhibited sharp changes in its spending levels. During boom times it increases its spending at a higher rate than other states, and during bust years it spends at a markedly lower rate.

The Great Recession was brutal for states and municipalities, and the weak recovery since has been little help. Revenues are down, yet bonds issued during the flush times still need to be honored. At the same time, the costs of unfunded pensions have continued to rise, further complicating a difficult financial situation.

Diabetes, heart disease and back pain are the priciest ailments in the United States, a new survey has found. And the cost of healthcare is rising faster than inflation.