POW!!! California $127 billion in the red

POW!!! California $127 billion in the red

April 19, 2013

By Katy Grimes

Holy understatement Batman! California is more than $127 billion in the red!

The California State Auditor recently released a report detailing California’s “net worth” as a state.

California is $127.2 billion upside down.

Holy helplessness Batman!

The Assembly Republicans California Budget Fact Check project explains: “As is a common annual practice in the business world, the Auditor totaled up all of the state’s unrestricted assets and income, and then compared them against the state’s liabilities to determine net worth.  Factoring all of these things together, California had a negative net worth of $127.2 billion in 2011-12.”

Holy dilemma Batman!

The Budget Fact Check found:

* State spending on government activities still outpaced tax revenues, even though overall spending declined.  This resulted in a drop in California’s net worth of $8 billion.

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* Half of the state’s negative “unrestricted net assets” are the result of outstanding state bond debt for capital projects for school districts and local governments.

* The decline in California’s net worth does not take into account the nearly $64 billion in unfunded retiree health care costs and upwards of $500 billion in unfunded state pension obligations.

And, despite state spending decreases, the state’s net worth declined.

Holy crucial moment Batman! 

“The Auditor’s report found that revenue was relatively static during the 2011-12 fiscal year, decreasing by just $297 million from the 2010-11 fiscal year – or a 0.3 percent decline,” Budget Fact Check found. “But, even though overall spending declined, spending still exceeded revenues last year.”

Holy ‘here we go again’ Batman!

* Outstanding Debt for Local Projects Decreases State Net Worth

“It is important to note that one of the biggest factors in the state’s $127.2 billion negative net worth are debts incurred by state government for local projects,” Budget Fact Check reported.

The financial report notes that the state held $57.5 billion in “outstanding bonded debt.”

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Holy catastrophe Batman!

* Not All of California’s Liabilities Included in Net Worth Calculation

“It is important to note that the State Auditor’s financial report does not include all of the liabilities facing our state, which would negatively impact the state’s net worth even further,” Budget Fact Check said.

Holy diversionary tactics Batman!

Read the Budget Fact Check report here. Imagine how your CPA would react if you played these accounting games with your finances.

Holy sudden incapacitation Batman!

10 comments

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  1. us citizen
    us citizen 18 April, 2013, 16:28

    Yep no matter what you do, 1 plus 1 still equals 2. They can play with the math all they want to, if it doesnt ad up, it doesnt ad up.

    Reply this comment
  2. Dyspeptic
    Dyspeptic 18 April, 2013, 18:11

    It all depends on what the meaning of “plus” is 🙂

    Reply this comment
  3. Tax Target
    Tax Target 18 April, 2013, 19:10

    and the meaning of one… perhaps it means zero… works in Disney-politico world….

    Reply this comment
  4. Brown delta trout
    Brown delta trout 18 April, 2013, 20:25

    I signed up for Uhauls pack ‘n’ ship special, let my assets go back the the bank, got a nice truck ride to the “camp.” The sun is shining down here (I think it’s somewhere near Bako?) I get three squares a day, a weight room, and lots of disadvantaged friends. No worries about state liabilities, health care, or doing the fiscally responsible thing. Life is good. Haven’t found Queeg yet. Anyone know what block he’s on?

    Reply this comment
  5. Hondo
    Hondo 18 April, 2013, 20:56

    127 billion in debt while not even taking into account the pensions!
    Like Barbie Doll says, “Math is hard”.
    Hondo…..

    Reply this comment
  6. Katy Grimes
    Katy Grimes 18 April, 2013, 22:43

    Math is hard.

    My other favorite: I can’t be overdrawn. (whine) I still have checks left.

    Katy

    Reply this comment
  7. stolson
    stolson 19 April, 2013, 11:48

    Really bad news. However, banning plastic shopping bags has top most priority in Sacro at this moment. Billions? Well, not to worry, the federales will bail CA out. Those at the top don’t seem to care about this pesky issue–budget. How long can this increasing debt be sustained?
    Raising auto renewals, taxes on this, that, air etc. still doesn’t plug the big gaping hole–just chisels away at it.

    Reply this comment
  8. Sean Morham
    Sean Morham 19 April, 2013, 15:56

    Beware of 2014….the roof is going fall in while the floor collapses…”ain t seen nothing yet.”
    The California Democratic establishment(and Big Daddy himself) will blame it on the Republicans…not enough federal monetary expansion, sad, but the brain dead cretins in Cal will believe it…But, you can t fill the tummy with hope and change.

    Reply this comment
  9. Donkey
    Donkey 19 April, 2013, 18:29

    The truth, California is more than $1.5 trillion in debt when the cities are added to the bill. 🙂

    Reply this comment
  10. Joe1938
    Joe1938 19 April, 2013, 20:53

    Back in 1990, the Government seized the Mustang Ranch brothel in Nevada for tax evasion and, as required by law, tried to run it. They failed and it closed. These nit-wits can’t make money running a whore house and selling whiskey! How th’ell can we expect them to run something as complicated the business of government?!!

    Reply this comment

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