California’s Economy Looks Headed for Disaster as Companies Flee in Droves

 California officials are sounding the alarm after recent statistics showing that less corporate and start-up activity in the state will lead to a decline in tax revenue

• This year, just nine companies based in California have held initial public offerings, or IPOs, which is when a company first lists shares for sale on the stock market-considered a milestone in its growth after strong activity and high valuation.
• In 2021, there were 81 IPOs and in 2022, only nine
• The loss of IPO funds is affecting California's tax revenues, with companies' income tax withholding payments declining by 5% compared to last year
• Tax revenue collected by municipalities in California also has declined, leading to problems funding public services

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