Auditor: California $127 billion in the red

Bankruptcy - exitMarch 29, 2013

By John Seiler

It’s official: California is broke. According to a new report by state Auditor Elaine Howle:

“unrestricted net assets totaled a negative $127.2 billion. Restricted net assets are dedicated for specified uses and are not available to fund current activities. Almost half of the negative $127.2 billion consists of $57.5 billion in outstanding bonded debt issued to build capital assets for school districts and other local governmental entities. The bonded debt reduces the unrestricted net assets; however, local governments, not the State, record the capital assets that would offset this reduction.”

So, the state owes $127 billion.

By comparison, General Motors was $173 billion in debt when it filed bankruptcy in 2009.

And Lehman Bros. went belly up in 2008 with $613 billion in debt, sparking the financial crisis from which we still haven’t recovered. The recent stock-market record prices only reflect the debased value of the dollar.

If you look around California, you can see the decay everywhere. The “freeways” are clogged. A friend of mine who recently drove around Texas said the traffic moved smoothly almost everywhere.

The roads in California are crumbling. Yesterday I was shocked at how Harbor Boulevard in Orange County had deteriorated. The macadam was cracked and crumbling in many places.

How can that happen in a county where the median home price is more than $400,000? It happens because the government at all levels is exceedingly badly run. Everything costs too much and goes to the wrong areas, such as pension spiking.

San Francisco is even wealthier that Orange County, with a median home price well above $700,000. Yet when I visited there last November, Pelosiland looked run down.

Voters have only themselves to blame for passing absurd bond measures that run up debt and electing delinquent legislators caring only to pad the pockets of the government-worker unions.

It’s a shame because the physical beauty of the state remains breathtaking. But the government part should be taken to bankruptcy court.

 

7 comments

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  1. loufca
    loufca 29 March, 2013, 13:01

    Hey Jerry… Jerry Brown, maybe your bullet train to Fresno can fix this.

    Reply this comment
  2. Brown delta trout
    Brown delta trout 29 March, 2013, 14:22

    Next stop on the tour is a vacation to Obamastan, the medical mecca of the world.

    Reply this comment
  3. Barb
    Barb 29 March, 2013, 15:28

    I’ve lived out of the state for approximately 9 yrs and when I moved back it was self-evident to me that the state’s infrastructure has not been maintained. The roadway systems are crumbling and I’m not seeing much desire to improve them, let alone rebuild them. What’s interesting to notice is when you cross over the state-line from CA to NV (on HWY 80), you immediately notice the improvement in the pavement on the NV side. And NV has snowfall once a year which can create havoc for pavement and why they re-pave each year. But it seems CA has ignored their responsibility to the very people who stuff their pocketbooks. There are other instances of a mismanaged state that I could highlight but what’s the point! (And CalWatchdog does a great job of that to their credit!) It will only fall to deaf ears! In the meantime, it will continue to erode!

    Reply this comment
  4. Where the money goes
    Where the money goes 29 March, 2013, 16:14

    The interest on the $9.95 billion borrowed through the Proposition 1A bond sales for the Safe, Reliable California High-Speed Passenger Train will be paid through vehicle weight fees originally meant to compensate for road damage by heavy trucks.

    http://www.myfoxla.com/story/21824113/money-shell-game (March 28, 2013)

    Reply this comment
  5. Donkey
    Donkey 29 March, 2013, 17:42

    John, you are correct, everything looks run down. Look at the drainage channals, all the fencing is rusted, no program or effort to maintain the fencing or clean the channals is in place that I have ever seen. And the roads in neighborhoods and main drags have all seen better days.

    The tax money is being looted by RAGWUS feeders that are only concerned about all the money waiting for them in retirement. Government unions are the Bolsheviks of our time. 🙂

    Reply this comment
  6. us citizen
    us citizen 29 March, 2013, 18:55

    But wait…………….we have tons of illegals…………cant they fix the roads…………rme

    Reply this comment
  7. stolson
    stolson 29 March, 2013, 19:13

    Aren’t there approx. 420 agencies? I bet only 220 are needed!!!!
    I gather illegals whether amnesty or not–will cost more dollars in many ways. There is NO reform for fraud, extremely high union salaries, payoffs to those who elected the sorry officials, ridiculous pension payouts, and these politicians don’t care–just find a way to keep taxing.
    No emphasis on job creation either.
    Unreal.

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Tags assigned to this article:
Elaine HowleGeneral MotorsJohn SeilerLehman Bros.

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