California in the red by $127.2 billion
Yesterday Guv Brown signed the $96 billion General Fund budget. Somehow in his statement he forgot the other $134 billion, for a total REAL budget of $230 billion in fiscal year 2013-14. The Governor also joked, it has to be a joke, that the budget is balanced—in fact, if he read the March 30 report of the State Auditor, the State has an unsustainable deficit of $127 billion. The Guv apparently also forgot the hundreds of billions in unfunded liabilities.
The people of California are adults, we expect our elected officials to be honest with us—too bad Jerry Brown is still treating us like children.
“A financial report issued by state auditors finds that the state of California is in the red by an unsustainable $127.2 billion.”
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By Jessica Chasmar, The Washington Times, 4/1/13
A financial report issued by state auditors finds that the state of California is in the red by an unsustainable $127.2 billion.
The report says that the state’s negative status increased that year, largely because it spent $1.7 billion more than it received in revenues and wound up with an accumulated deficit of just under $23 billion in fiscal year 2011-2012, the Sacramento Bee stated.
About half of the deficit came from the state issuing general obligation bonds and then giving the money to local governments and school districts for public works projects. The report listed California’s long-term obligations at $167.9 billion, nearly half of which ($79.9 billion) were in general obligation bonds, with another $30.8 billion in revenue bonds, the Sacramento Bee reported.