Posted on 03/22/2016 6:11:09 PM PDT by massmike
Although its 2014-15 budget was balanced, California’s state government ended the fiscal year $175.1 billion in the red, thanks largely to state retirement obligations that had to be included in its balance sheet for the first time.
Under new rules by the Governmental Accounting Standards Board, state and local governments must list unfunded pension liabilities as debts alongside the more traditional bonds and other forms of debt.
Counties and other local governments have been rolling out their annual financial reports this year, some showing multibillion-dollar deficits for pension obligations, so the state’s report was not unexpected.
Pension reform advocates have praised the new GASB standards, saying they drive home their point that pension obligations are debts that distort state and local finances.
The newly revised state data are contained in the “comprehensive annual financial report” that Controller Betty Yee issued on Friday. And she noted in a cover letter that the debts for “postemployment benefits” will jump again in the report for the 2017-18 fiscal year, when state retiree health care must be included under GASB’s rules.
Aside from the employee benefit debts, Yee’s report on the 2014-15 fiscal year is quite positive. It notes that operating revenues, principally income and sales taxes, exceeded spending by several billion dollars, providing a cushion for the 2015-16 fiscal year that followed.
(Excerpt) Read more at sacbee.com ...
YOU IDIOTS!!! Know this. Donald Trump WILL NOT BAIL YOU OUT!!
This is no worse than the average person determining whether they are overspending by doing their monthly expenses vs. income and leaving out mortgage/rent and their car note.
If all the expenses (less mortgage/rent and car note) are less than net income: VOILA! Budget balanced!
How can they afford all those illegal aliens programs
Jerry Brown has it covered with a new tax. lol
Total ignorant idiots. I put them in the same pathetic category as Europe. When the babies and women start getting slaughtered , will they flee to hide under their beds?
Almost 1/4 Trillion dollars.
Get out of CA before they tax every thing you own.
I thought state “cap and tax” was bringing in big $$ (along with nationwide leading gas prices) ?
So, the state has been loaning money to “local governments”?
California....one large Ponzi Scheme.
Maybe they can borrow money from Puerto Rico.
How can they afford all those illegal aliens programs
They can’t
Their fiscal problems have only just begun
Shhhhhhh. They’ll fail sooner to suckle at Barqy’s teet.
just wait till interest rates start to rise again . . . which will be in the next couple of years, for sure.
The entire California state budget is $170.7 billion. The deficit is $175.1 billion.
$4400 per known Californian.
Our California legislature is overrun by democrats and we have a certifiably insane liberal for a governor. What else would anyone expect? Fiscal responsibility? It’s like none of them know the first thing about economics or finance.
It’s quite astounding that we elect such dolts.
anyone who ever lived and work in CA will be subject to a confiscatory CA tax at some point. Watch out.
That number is low, I heard a State Senator on the radio the other day say it was $250 Billion.
A simple tax increase will balance the budget.
$175,100,000,000 / 36,000,000 = $4864 per Californian.
Easy, peasy!
Okay, then $6944 per Californian! Easy, peasy!
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