Governor Brown ET AL loudly crow that “we’re back” — the California economy and government finances are back in shape.
Then the doggone state auditors make their report! Bunch of naysayers — that’s what they are.
Note the last paragraph of the SAC BEE article: “The list of long-term obligations did not include the much-disputed unfunded liabilities for state employees’ future pensions, nor the $60-plus billion in unfunded liabilities for retiree health care.”
Uh oh.
Moreover, I’m not sure what the “much disputed” thingy is. Certainly the AMOUNT is in dispute, but the existence of these unfunded liabilities is not. Arguably that total unfunded liability is considerably larger than the listed $127 billion admitted shortfall.
DOUBLE uh oh. Maybe triple.
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THE LATEST ON CALIFORNIA POLITICS AND GOVERNMENT
Were California’s state government a business, it would be a candidate for insolvency with a negative net worth of $127.2 billion, according to an annual financial report issued by State Auditor Elaine Howle and the Bureau of State Audits.
The report, which covers the fiscal year ending June 30, 2012, says that the state’s negative status — all of its assets minus all of its liabilities — increased that year, largely because it spent more than it received in revenue.
During the 2011-12 fiscal year, the state’s general fund spent $1.7 billion more than it received in revenues and wound up with an accumulated deficit of just under $23 billion from several years of red ink. Gov. Jerry Brown has referred to that and other budget gaps, mostly money owed to schools, as a “wall of debt” totaling more than $30 billion.
. . .
Go to the link for the full article:
http://blogs.sacbee.com/capitolalertlatest/2013/03/state-auditor-california-net-worth-at-negative-127-billion.html
Comments 2
When the public sector unions are constantly sucking the blood out of the taxpayers and demanding more with no increase in output, what result were you thinking would occur?
When you run businesses out of the state to TX, FL, GA and NV with overburdening regulation and taxes, what did you expect?
When you have gerrymandered the districts to ensure liberal/progressive control of your state, what other outcome were you thinking would happen?
I am surprised the number is not higher.
facts don’t win the modern day voter. Emotions do.