Be honest, tell taxpayers how much we owe

Contra Costa Times ^ | Updated 1/22/12 | Daniel Borenstein - Staff columnist

[SmithL]

It's time for public agencies to come clean about their debt.

On Wednesday morning, we editorially criticized the Moraga Orinda Fire District for plans to borrow $2 million for a new administration building that was twice the size it needed when there was adequate office space available for lease in Orinda City Hall. That night, the fire district board, in a stunning reversal, canceled the deal.

It was the right decision, although some board members said they made it only because of bad publicity. Director Frank Sperling said individuals and organizations "have created a perceived reality through purposeful misinformation."

Actually, it's the district that's deceptive, that doesn't publicly acknowledge how deeply in debt it really is. I suspect that one revelation in our editorial moved the community more than any other: The 15-year-old district already has run up $68 million in debt just for unfunded pension and retiree health care liabilities, or an average of $1,600 for each district resident. It's equal to the cost of running the district for nearly four years.

Many public agencies face similar obligations, and they don't disclose them in an easily accessible way. If public officials want to regain trust from voters and taxpayers, they need to begin by revealing all their obligations.

Indeed, the fire district's $68 million debt doesn't even appear in its financial statement. It must be cobbled together from numbers buried in notes in the back:

• The district owes $25,760,000 for bonds it issued in 2005 to pay off some of its pension debt.

• The district has an additional unfunded liability for its pension debt of $17,905,000. (The way the number is calculated actually understates the full debt amount because investment losses from the Great Recession have not been fully realized yet.)

[SmithL]

Bonds are considered "Free Money" in the Golden State.

[Mouton]

I thought the CCT firmly supported Dem Miller, the lefty wild spending union sympathiser CC has in Congress.

How did this columnist get off the reservation?

[Riodacat]

Be honest, tell taxpayers how much we owe

No!!! Ignorance is Bliss...

[blueunicorn6]

They want Democrats to fess-up and admit they promised people money to buy their votes, and there isn’t enough money now?

“Tappity-tappity-tappity....we call this THE DEMOCRAT DANCE.....tappity-tappity-tap......we call this move THE TAXPAYER TURN.....tappity-tap-tap-tap......this is an old favorite......tap-tap-tap.....THE SACRAMENTO SHUFFLE.....just dancin’ our problems away......tappity-tappity-tap.”

Democrats - dancing around the problems they created.

[Kozak]

Add up all the deficits and unfunded liabilities for all levels of government and you get about 140 TRILLION DOLLARS. no conceivable way that gets paid.

[Jukeman]

Governments and its agencies are corrupt at all levels.

[chiefqc]

Honesty and the mac daddy administration are not even in the same solar system.

[pacpam]

‘...have created a perceived reality through purposeful misinformation.’
Good working definition of propaganda. Anything but the truth has become the mantra of the left and/or those seeking total control.