So, how deep is the state of California's problems?

My license tags on my car expired in January, but we only realized it today. As a result, I just had to spend 2 hours at the DMV and pay a 60% late penalty for my new tags.

According to a person at the DMV, they sent me two notices, one in mid-November, and another about two weeks ago. Neither my sister nor myself ever saw either of those notices. Now, I can see misplacing one of them, but not two of them.

So here's the question: is California in enough financial do-do, that they secretly stopped sending out the renewal notices in hopes that there will be lots of people like me who have to pay the 60% penalty?