“How is the state doing in paying its bills? The logical outcome would be that they pay late, forcing private companies to raise their prices. Is this happening?”
In the recent past, the state issued warrants instead of paying their suppliers. Basically IOU’s. If I were one of these companies today, I’d be reconsidering the state’s business. This is only getting worse. How long can a state contractor wait for his money? Will he foot the bills to his subcontractors and/or material suppliers again? While the state sits on the precipice of bankruptcy, will it’s suppliers be willing to do the same? As a resident, I surely hope not. California needs to go under, and the sooner it does, the better for us all.
Companies can be blackmailed by the state to accept these warrants, but, eventually, the suppliers to the suppliers will raise their prices and then anybody being blackmailed goes out of business. Of course, this could be part of California’s plan.