• If you are having problems logging in please use the Contact Us in the lower right hand corner of the forum page for assistance.

California - No Net Worth

Mike

Well-known member
The Sacramento Bee reports:

Were California's state government a business, it would be a candidate for insolvency with a negative net worth of $127.2 billion, according to an annual financial report issued by State AuditorElaine Howle and the Bureau of State Audits.

The report, which covers the fiscal year ending June 30, 2012, says that the state's negative status -- all of its assets minus all of its liabilities -- increased that year, largely because it spent more than it received in revenue.

During the 2011-12 fiscal year, the state's general fund spent $1.7 billion more than it received in revenues and wound up with an accumulated deficit of just under $23 billion from several years of red ink. Gov.Jerry Brown has referred to that and other budget gaps, mostly money owed to schools, as a "wall of debt" totaling more than $30 billion.


Read more here: http://blogs.sacbee.com/capitolalertlatest/2013/03/state-auditor-california-net-worth-at-negative-127-billion.html#storylink=cpy
 

Mike

Well-known member
Traveler said:
Another downward spiral. Any guesses on when some of the more socialist states will start whining for a bailout?

Allowing them to go bankrupt is bad enough. It's always the "littleguy" or "small contractor" that doesn't get paid in a bankruptcy proceeding.

How would we even begin to bailout California? I say give it to China in exchange for the debt.
 

Traveler

Well-known member
Mike said:
Traveler said:
Another downward spiral. Any guesses on when some of the more socialist states will start whining for a bailout?

Allowing them to go bankrupt is bad enough. It's always the "littleguy" or "small contractor" that doesn't get paid in a bankruptcy proceeding.

How would we even begin to bailout California? I say give it to China in exchange for the debt.
Good idea! California could use a little coerced Chinese manufacturing technology. :lol:
 

ANGUS327

Well-known member
The solution has already been tried in Cyprus, just take money out of peoples bank accounts, they aren't using it anyway plus dosen't the money belong to the government anyway.
 

VCC

Well-known member
Now hold on, if you just gave them LA, Santa Barbara, Sacramento, San Francisco and Stockton, The rest of the state has allot of hard working people who lean right and are just tired of paying for the wants and needs of the people in the cities mentioned above. Take a drive down the 99 and you see fields of hay, rows of crops, cattle and orchards. The decisions mage in Sacramento, like only giving the farmers 20% of their allotted water, so the Delta Smelt can continue to get eaten by the other fish, is just plain asinine. The state that had the highest revenue for Ag in the country is squeezing it farmers out of business.
Don’t worry, they claim that California is the model for our country if the current administration in Washington keeps going in the direction it is going. All you need to do is pay all your state employees more than you bring in and give them stupid over inflated retirement packages, it is the key to ruining your state, or country. :mad:
 

Whitewing

Well-known member
VCC said:
Now hold on, if you just gave them LA, Santa Barbara, Sacramento, San Francisco and Stockton, The rest of the state has allot of hard working people who lean right and are just tired of paying for the wants and needs of the people in the cities mentioned above. Take a drive down the 99 and you see fields of hay, rows of crops, cattle and orchards. The decisions mage in Sacramento, like only giving the farmers 20% of their allotted water, so the Delta Smelt can continue to get eaten by the other fish, is just plain asinine. The state that had the highest revenue for Ag in the country is squeezing it farmers out of business.
Don’t worry, they claim that California is the model for our country if the current administration in Washington keeps going in the direction it is going. All you need to do is pay all your state employees more than you bring in and give them stupid over inflated retirement packages, it is the key to ruining your state, or country. :mad:

Are you going to make the outrageous claim that $435,000 per year for life is not justifiable for a county commissioner, or whatever job it is she holds?
 

VCC

Well-known member
I would have to say that would be a "YES" it is outrageuos, irresponsible, unsustainable, almost criminal, and just plain wrong.
 

Steve

Well-known member
A federal bankruptcy judge ruled on Monday that the city of Stockton, Calif., was eligible for court protection from its creditors, clearing the way for a battle over whether public workers’ pensions can be cut when the city they work for goes bankrupt.

bondholders objected to Stockton’s effort to protect pensions while forcing losses on investors.

Many states have statutes and constitutional provisions making it illegal to cut public workers’ pensions. Until now, there has not been a prominent test of those laws in bankruptcy — particularly not in California, where the big state pension system, known as Calpers, has been girding for battle on the issue, trying to avoid the precedent of a cutoff or shortfall in a city’s pension contributions.

Federal bankruptcy law often trumps state laws, but municipal bankruptcies are so rare that there is almost no precedent on how to apply the law to state pension provisions.

Specifically, they argued that they were being forced to take big haircuts while Calpers was not asked to give up a single dollar of what Stockton owed it, an estimated $900 million

http://www.nytimes.com/2013/04/02/business/ruling-sets-stage-for-pension-battle-in-bankrupt-city.html?pagewanted=all&_r=0
 
Top