The relative placement of California on the debt chart at #10 is incorrect. California’s sovereign debt levels are far higher since they been able to obscure the actual levels of state debt. They were by far the worst of all the states immediately after the financial crisis of 2008-09 and this I believe remains the same today. See below and notice the revenue vs spending on the debt clock
The accounting gimmicks the state of California uses as it attempts to obscure the fiscal calamity it is heading toward as it claims progress toward a balanced budget, includes the use of “cash-basis” accounting over the forthright “accrual basis”. For example, new loans to the state are counted as income and unfunded liabilities are not considered in the debt. In this way, California obscures its true debt and gets away with reporting debt as far lower than it is. The figures have been reduced by as much as 90% of the actual amounts through the use of these accounting gimmicks.
The state of California is a prime example of the typical fiscal mismanagement and squandering by Leftist government.
Consider the state’s abysmal water resource planning where California’s drought history was ignored and millions of acre feet of water were wasted on ‘delta smelt’ while new state water projects were shelved.
Our fiscally responsible states will eventually be facing a bailout of California much like the EU faces the bailout of Greece.
Just to remind you.. charts and even debt clocks can obscure the rampant unsustainable levels of debt faced today as a result of kicking the can down the road during the last crisis.
A note on the above chart
The relative placement of California on the debt chart at #10 is incorrect. California’s sovereign debt levels are far higher since they been able to obscure the actual levels of state debt. They were by far the worst of all the states immediately after the financial crisis of 2008-09 and this I believe remains the same today. See below and notice the revenue vs spending on the debt clock
http://www.usdebtclock.org/state-debt-clocks/state-of-california-debt-clock.html
Continuing with my post above… see http://bit.ly/1DavWTB
The accounting gimmicks the state of California uses as it attempts to obscure the fiscal calamity it is heading toward as it claims progress toward a balanced budget, includes the use of “cash-basis” accounting over the forthright “accrual basis”. For example, new loans to the state are counted as income and unfunded liabilities are not considered in the debt. In this way, California obscures its true debt and gets away with reporting debt as far lower than it is. The figures have been reduced by as much as 90% of the actual amounts through the use of these accounting gimmicks.
The state of California is a prime example of the typical fiscal mismanagement and squandering by Leftist government.
Consider the state’s abysmal water resource planning where California’s drought history was ignored and millions of acre feet of water were wasted on ‘delta smelt’ while new state water projects were shelved.
Our fiscally responsible states will eventually be facing a bailout of California much like the EU faces the bailout of Greece.
Just to remind you.. charts and even debt clocks can obscure the rampant unsustainable levels of debt faced today as a result of kicking the can down the road during the last crisis.