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CSPP
California Gets An "F" For Its Finances
According to the nonprofit, public watchdog group, Truth in Accounting, California ranked number 43 in the nation for its fiscal health. Their report is based on the most recent data available. As reported by Truth in Accounting,
"California needs $275 billion to get out of the red, or $21,800 from each of its taxpayers.
"California and other states have become more transparent over the last few years, thanks to the Generally Accepted Accounting Principles set by the Governmental Accounting Standards Board, which now require governments to disclose pension and other post-employment (OPEB) benefits on their balance sheets. If these benefits have not been fully funded, they are considered liabilities, or debt, because they represent money owed to government employees in their retirement."
To read the full Report, The Financial State of States, CLICK HERE
According to the watchdog's tenth annual Financial State of the States report, "
"California has $388.9 billion in bills and only $114 billion in available assets to pay those bills after capital and restricted assets are excluded. This results in a $275 billion shortfall, or a $21,800 Taxpayer Burden™, which is each taxpayer's share of the state debt after the state's available assets have been tapped. TIA's Taxpayer Burden indicator incorporates both assets and liabilities, including unfunded retirement obligations.
"The bottom line is that California does not have enough money to pay its bills, which is why it received an "F" grade for its fiscal health."