> I’m confused - I thought California had a record $100B budget surplus just last year?

It had a $100B projected surplus, which it couldn’t Constitutionally retain (or even spend, because of things like the Gann Limit on state appropriations), so it returned a whole lot of money to taxpayers through various credits and rebates.

> California recorded a nearly $100 billion state budget surplus last year, thanks to the state’s top earners, that could have been used to repay the debt. The state received $27 billion in federal COVID aid it could have used to repay the debt. The state’s record $300 billion–plus 2022–23 budget could have retired the debt. Even after defaulting, the state could have resumed its payments this year and offset the tax burden on businesses, as it planned to do in its 2023–24 budget. But as the state’s finances continue to decline, the state has walked back making payments or offsetting higher business federal unemployment insurance taxes.

Idk what California's argument is for why they aren't paying