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California Recession Already Happening

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(Via Zerodhedge)

When it comes to the health of his state’s economy, California Governor Jerry Brown has been walking on eggshells this year. Twice each year, once in January and again in May, Gov. Jerry Brown warns Californians that the economic prosperity their state has enjoyed in recent years won’t last forever. Brown attaches his admonishments to the budgets he proposes to the Legislature – the initial one in January and a revised version four months later. Brown’s latest, issued last May, cited uncertainty about turmoil in the national government, urged legislators to “plan for and save for tougher budget times ahead,” and added:

“By the time the budget is enacted in June, the economy will have finished its eighth year of expansion – only two years shorter than the longest recovery since World War II. A recession at some point is inevitable.”

It’s certain that Brown will renew his warning next month. Implicitly, he may hope that the inevitable recession he envisions will occur once his final term as governor ends in January, 2019, because it would, his own financial advisers believe, have a devastating effect on the state budget.

Unfortunately for Governor Brown, the recession he fears may already have arrived in California.

The following chart showing the trailing twelve month averages of California’s civilian labor force and number of employed is one that we’ve adapted from a different project to show that data in the context of the state’s higher-than-federal minimum wage increases and periods of negative GDP growth for the national economy. It shows that in 2017, the size of the state’s labor force has peaked and begun to decline in 2017, while the number of employed shows very slow to stagnant growth during the year.

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Iowa

“Despite What You All Think”: Nearly $150 Million in New Water Commitments Follow Reynolds’ Defense of Iowa’s Record

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Gov. Kim Reynolds defended Iowa’s water-quality efforts and the stewardship of farmers during a May 1 press conference. In the weeks that followed, the state and federal governments committed approximately $148.3 million in clearly identifiable new water funding and financing.

During a May 1, 2026, press conference announcing Iowa’s “Farm to Faucet” proposal, Gov. Kim Reynolds pushed back when reporters questioned the condition of Iowa’s water.

“Despite what you all think,” Reynolds told the group of reporters before defending Iowa’s investments and arguing that farmers care about protecting their land because they intend to pass it down to their children.

The governor’s defense came as Iowa continued confronting concerns involving nitrates, lead pipes, PFAS contamination, aging treatment facilities and rural water infrastructure. Reynolds announced what her administration promoted as a nearly $320 million water-quality package spanning 12 years. The proposal was signed into law on June 1 and took effect July 1.

How Much of the $320 Million Is Actually New?

The nearly $320 million headline does not represent $320 million in entirely new state spending.

The Iowa Department of Agriculture’s own announcement states that the legislation works partly by “re-directing existing dollars.” Approximately $76 million can be clearly identified as new or additional state funding:

  • $52 million over 12 years for conservation practices in the Greater Des Moines watershed.
  • $6 million over 12 years for additional water-quality monitoring, based on an additional $500,000 annually.
  • $8 million as a one-time investment in drinking-water and wastewater treatment grants.
  • $10 million to establish the Rural Iowa Infrastructure Bank, which will provide low-interest loans for smaller communities.

That equals approximately $76 million in clearly new state commitments—about 24% of the administration’s advertised $320 million package.

Another $25 million is designated for Central Iowa Water Works to expand nitrate-removal capacity. However, the state says that money will come from the existing balance of an underused program, meaning it is redirected funding rather than an entirely new appropriation. Other portions of the $320 million package similarly involve restructuring existing water-excise-tax revenue and moving money between programs.

More Than $72 Million in Federal Support Followed

Separate from Reynolds’ state package, federal agencies announced approximately $72.3 million in water-related funding and financing for Iowa after her May 1 comments.

The documented federal commitments include:

  • $46.116 million announced by the Environmental Protection Agency on May 20 for identifying and replacing lead service lines.
  • $9.457 million announced by the EPA on May 19 for PFAS testing, planning and treatment projects in small or disadvantaged Iowa communities.
  • $344,000 announced on June 26 for small and rural drinking-water systems.
  • $16.373 million announced by the U.S. Department of Agriculture for rural Iowa water infrastructure, including new wells, a treatment plant, a water tower and pipelines. Of that amount, approximately $15.5 million consists of loans and $874,000 consists of grants.

The federal money addresses several different problems, including lead exposure, PFAS, insufficient rural water supplies and aging infrastructure. It should not be presented as though every dollar directly addresses agricultural nitrate runoff.

The Combined Total

Since Reynolds’ May 1 remarks, the clearly identifiable commitments are:

  • New state funding: approximately $76 million
  • Federal funding and financing: approximately $72.3 million
  • Combined total: approximately $148.3 million

These numbers represent appropriations, allotments, grants, loan funds and financing commitments. They do not mean that all $148.3 million has already been spent or that the projects have been completed.

The state portion is also spread across as many as 12 years, while several federal awards will flow through state or local programs before construction begins.

Still, the scale and timing of the investments matter. Reynolds told reporters, “Despite what you all think,” while defending Iowa’s water record. Yet within weeks, her administration signed a major water package and federal agencies committed tens of millions more to Iowa’s lead pipes, PFAS contamination, nitrate-treatment capacity and struggling rural water systems.

Investment is welcome, but the funding itself demonstrates that Iowa faces real and costly water challenges. The final measure of success will not be the size of a press-release headline. It will be whether nitrate levels decline, unsafe pipes are removed, rural systems become reliable and Iowa residents can trust the water flowing from their faucets.

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Safe Elections By Any Means Necessary

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