Today, California Governor Jerry Brown will release his May-revision for the Fiscal Year 2012-2013 state budget. Needless to say, it is anything but golden. The details will be available here this week. The budget deficit has grown to $16 billion, up from $9 billion just a few months ago.

Governor Brown indicates this is due to the state collecting less than expected income taxes this year and a slow turn around in the economy. Cuts will undoubtedly hit the most vulnerable of our society: the elderly, low-income, students and disabled.

It’s incredible to think California is in this position when you consider how many millionaires and BILLIONAIRES call the Golden State home. Los Angeles comes in at #1 in the nation for the number of millionaires, with two other counties in the top 10.

Tax loopholes make it possible for the nation’s wealthiest to pay the least amount of taxes, some say approximately 15 percent compared to our 35 percent. And, corporations pay even less. You only have to look at the egregious “No Tax on Buying a Yacht” to see why California is in such bad shape. Simply put, keep your boat out of state for 90 days and pay no sales tax whatsoever.

Most alarming to me is Gov. Brown’s statement, “the Legislature has to man up, make cuts, and we’ll make it.” As if he’s implying NOT making it is an option.

Holding the world’s 6th largest economy, California plays a large part in the health of our country’s economy. Knowing our governor is basing his turn around on voter approved tax increase this coming November isn’t necessarily the most encouraging news to me.

What I am wondering and most want to know your thoughts about are, if California doesn’t make it, what would that mean for the rest of the country?