Is that why the state is literally bankrupt and heading toward the Federal trough and the state and Federal water policies have driven Most of the agriculture out of the state and maybe one of the reason for the current drought[like dumping billions of gallons of water in to SF Bay due to some obscure fish of little value]. In addition most retirees move as soon as they retire to other states. In addition their state and local pensions are being funded on a mostly current basis, your analysis may be a bit off. Also, a boat load of my older friends have checked out and taken their assets to AZ and NV. The Fed and state tax rates will not support the welfare state indefinitely, it only works for a while. What are the NEW businesses?