What California Comeback?

As Democratic Gov. Jerry Brown would have it, things in California are going absolutely hunky-dory thanks to November's voter-approved tax hike. Or are they?

For only the second time in the past decade, the state is projecting a balanced budget and may even run a surplus. Revenues last month exceeded projections by about $5 billion, though the Legislative Analyst's Office attributes the windfall to investors realizing and reporting higher capital gains and dividends income in order to avert this year's rise in federal tax rates. According to recent surveys, voters...