The state is suffering a debt crisis, and no one is talking about it

Written by Elina Linner

California has an alarming underlying debt crisis, and in more ways than one.

One example is water debt. Back in April 2020, Governor Newsom issued an executive order that banned water and electricity shutoffs during the pandemic. While that saved many struggling Californians from losing their essential utilities temporarily, an estimated 1.6 million California residents are late on their water payment, bringing the current statewide water debt to $1 billion. 

Unpaid bills are a big threat to smaller water systems that serve rural and poor areas. A large majority of the Democratic party talks about inequality being a critical threat to the country, but at the same time, Newsom’s lockdown is hurting low-income communities “who suffer disproportionately from job loss and coronavirus itself.”

In another surprising twist during this ongoing pandemic, U.S. credit card debts have dropped by $76 billion in the spring, which happens to be the steepest decline since the nation’s bank system began analyzing debt records in 1999. 

An estimate of “half of Californians who received the latest round of stimulus checks report that they mostly used them to pay off outstanding debt,” according to January Census Bureau surveys. So while credit card debts dropped significantly, it’s only because people were thrown a lifeline. The pandemic will end and stimulus checks will become a thing of the past, but the expenses that created the debt in the first place aren’t going anywhere. In fact, with California already being democrat run and the federal government now being under democratic control as well, taxes and other expenses are only likely to increase. 

Furthermore, landlords in California are also struggling under the leadership of our Democratic Governor. Renters are not able to pay their rent which has led to an eviction moratorium until the end of June. While this is good for renters that can not pay rent, it means landlords are unable to pay their mortgages and other property-related expenses. Leading to more debt. The state has worked out a plan that would pay off the debt of some renters, but it would require landlords to forgive a certain portion of the rent.

Democratic leadership in our state is worsening the debt crisis with each passing day. Regulations are extreme, taxes are high, and it doesn’t look like that will change anytime soon; at least under the current elected officials. California needs new leadership that is focused on making life easier for those who live here. You can make that happen by signing the petition to recall Gavin Newsom. To download and sign the petition, visit