Behind Gov. Jerry Brown's 'wall of debt' lies a moat of bond obligations

Sacramento Bee ^ | 5/20/11 | Dan Walters

[SmithL]

Gov. Jerry Brown says California has a "wall of debt" that must be reduced – and is now using it as his chief rationale for a temporary boost in taxes.

At the same time, however, he is proposing to borrow billions more by issuing some of the bonds that voters have authorized for public works projects. And therein lies a rub.

Brown's "wall of debt" refers mostly to an estimated $35 billion in loans and deferred payments that former Gov. Arnold Schwarzenegger and the Legislature adopted to paper over the state budget's chronic deficits.

However, Brown's revised budget also notes that the state has more than $80 billion in outstanding bonds and faces an estimated $181 billion in unfunded liabilities for public employee pensions and retiree health care (a number that may be too low).

Moreover, there is $50 billion-plus in bonds authorized by voters but not yet sold.

[SmithL]

Tax and borrow and spend.

[Vaduz]

The only company doing good in Ca is the van lines going east.

[Repealthe17thAmendment]

I believe California is full of multi-millionaire show-biz people who favor massive taxes on the wealthty. It’s time to start taking their donations.

[eyeamok]

Simple answers for complex problems
1. There shall be no Refinancing of Public Debt Ever.

2. All Public Debts shall be deemed Null and Void and Uncollectable after 5 years from it’s original issuance.

Problems solved

[blueunicorn6]

Jerry Brown - “We will reduce this ‘Wall of Debt’ by flushing your tax dollars down ‘The Toilet of My Administration’. And you get to buy my toilet-paper, too”.

[ClearCase_guy]

Up to his ass in alligators, as the saying goes.

[newzjunkey]

While CA voters typically hate “new taxes” they love bond debt. It’s insanity.

[DB]

Because many are too ignorant to know what a bond is.

They think of them as being like home equity loans - free money... Never mind both have to be paid back...

Public education is a failure.

[Red Barr]

A week after increased revenue estimates looked to frustrate Gov. Jerry Brown's case for higher taxes, a Supreme Court ruling requiring California to reduce its prison population may help. Brown said in a prepared statement that shifting certain offenders from state prisons to county facilities, as Brown proposes in his budget, is "key" to implementing the court's order today that California reduce its prison population by more than 30,000 inmates. "We must now secure full and constitutionally guaranteed funding to put into effect all the realignment provisions," he said, a reference to his bid for a ballot measure extending higher taxes.