Newsom’s ‘California Dream’ Faces $26,000 ‘Cost of Living Penalty’, Homeless Director Flees High-Cost State After Another Eviction

The State of California’s website promotes what it describes as the “California Dream,” defined as “the idea that every person can achieve a better life, no matter where they start.” .

But it’s becoming increasingly difficult for California residents to keep up with the state’s high costs.

According to a recent study by the nonpartisan Transparency Foundation, a family earning $130,000 a year faces an estimated “Cost of California” penalty of $26,478 compared to if they paid the national average for different income categories. Cost of life.

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The $130,000 annual income earner is defined in the study as California’s middle class. For those who earn less, it’s not just the cost of living penalty that should worry residents, but also whether they can afford to live in California. An article from the Los Angeles Times gives an example.

Nathan Sheets, director of homeless services organization The Center in Hollywood, received his second eviction notice in three years.

Citing an affordability crisis and lack of housing security, Sheets abandons California for good, moves his family back to Indiana, where costs are lower, and quits his job to help the homeless in California.

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Sheets notes the irony, writing, “If we can’t afford to live here ourselves, we can’t help the unhoused population we want to serve.” »

California’s reputation as a high-cost-of-living state has strengthened in recent times, with gas prices now at $5.32 per gallon, compared to the national average of $3.59 , according to AAA, and a recent increase in the minimum wage to $20 an hour for express service. food workers.

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Rising costs also impact utility bills. After the California Public Utilities Commission approved another rate hike, a California-based utility company PG&E Corp. (NYSE: PCG) will again raise the prices of residents’ electric and gas bills after raising them just a few months ago.

Customers whose average residential utility bill was $254 in 2023 will now face new monthly bills of about $292.

The high cost of living that puts the California dream out of reach for residents is not a new phenomenon. For the fourth year in a row, California leads the nation with the most net outbound moves, according to U-Haul data.

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This article Newsom’s ‘California Dream’ Faces $26,000 ‘Cost of Living Penalty’ as Homeless Director Flees High-Cost State After Another Eviction, originally published on Benzinga.com

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