What Recovery? L.A. County Debt Goes From $8.2 Billion to $16.8 in TWO YEARS

Government is in trouble—that means you, your family and your job is in trouble. All you need to know:

“Los Angeles County

Went from <$8.2 billion> net deficit FY 2013/14 (link is external) to <$16.8 billion> net deficit FY 2014/15 (link is external)

Santa Clara County

Went from <$752 million> net deficit FY 2013/14 (link is external) to <$3 billion> net deficit FY 2014/15 (link is external)

Orange County

Went from $330 million net assets in FY 2013/14 (link is external) to <$2.9 billion> net deficit FY 2014/15 (link is external)”

While these are just a few counties, this is a statewide problem. California may be the first state to financially collapse. At the same time governments and school districts around the State are asking for more than $100 billion more in bonds and tax increases. Instead of being fiscally responsible, they have decided to “party” as if they had unlimited resources—and they do—YOURS.

BREAKING NEWS: Pension Debt Swamps L.A. County Balance Sheet

Senator John Moorlach, 3/1/16

L.A. Debt Jumps From $8 Billion to $17 Billion

Other Counties Also Doing the ‘GASB Gasp’

GASB (“GAZ-bee”) and CAFR (“CAF-er”) are two of 2016’s most important acronyms. That’s because the Governmental Accounting Standards Board (GASB) mandated that, beginning this year, governments must report unfunded public employee pension liabilities on their audited balance sheets in their Comprehensive Annual Financial Reports (CAFR).
As the fiscal year 2014/15 CAFRs start rolling out, pension debts are swamping local government balance sheets.  Here are a few recent unrestricted net assets (deficit) examples:

Los Angeles County

Went from <$8.2 billion> net deficit FY 2013/14 (link is external) to <$16.8 billion> net deficit FY 2014/15 (link is external)

Santa Clara County

Went from <$752 million> net deficit FY 2013/14 (link is external) to <$3 billion> net deficit FY 2014/15 (link is external)

Orange County

Went from $330 million net assets in FY 2013/14 (link is external) to <$2.9 billion> net deficit FY 2014/15 (link is external)

With California’s 58 counties, 482 cities, 1,000’s of local government agencies, and the State of California due to report CAFRs in the coming weeks, California’s cumulative net worth could decline by a half trillion-dollars.

Everyone will be doing the ‘GASB gasp.’

CLICK HERE (link is external) to learn more