California ends FY2013 $1.9B in the Black

[djAdvocate]

www.sco.ca.gov/eo_pressrel_15182.html

According to the monthly report covering California's cash balance, receipts and disbursements in June 2014, the General Fund had $1.9 billion in cash on June 30, marking the first time it has ended the fiscal year in the black since 2007, when it ended the year with $2.5 billion in the bank.

Texas, lick it! 

Virgil: www.michaeljfox.org/

[The Captain]

Good news DJ!  Does this mean you won your bet with Virgil?

Now...

This is before the $7.5 B bond offering to make sure you folks have water to drink, right?

(I have to put that in because as an accountant, governmental accounting (and yes - it is different from GAAP) drives me nuts!!!)

[djAdvocate]

Aug 19, 2014 13:02:50 GMT -5 The Captain said:

Good news DJ!  Does this mean you won your bet with Virgil?

Now...

This is before the $7.5 B bond offering to make sure you folks have water to drink, right?

(I have to put that in because as an accountant, governmental accounting (and yes - it is different from GAAP) drives me nuts!!!)

i really prefer accrual accounting, but for obvious reasons, cash basis is the way it is generally done for states.

i am just happy we can get to paying down our massive debt.  hopefully, before the legislature increases spending. 

for what it is worth, it looks like they are being responsible SO FAR.

[AgeOfEnlightenmentSCP]

Aug 19, 2014 12:51:55 GMT -5 djAdvocate said:

www.sco.ca.gov/eo_pressrel_15182.html

According to the monthly report covering California's cash balance, receipts and disbursements in June 2014, the General Fund had $1.9 billion in cash on June 30, marking the first time it has ended the fiscal year in the black since 2007, when it ended the year with $2.5 billion in the bank.

Texas, lick it! 

Virgil: www.michaeljfox.org/

Whew! Well we can all relax now.  Well, except for...
www.forbes.com/sites/thomasdelbeccaro/2014/08/19/calfiornias-economic-collision-course-immigration-and-water/

Also, more than 30% of the nation’s welfare recipients are Californians – even though California has just 12% of the nation’s population. It is not surprising, therefore, that California is ranked number one in poverty.

The cause for those bad statistics is bad government policy. California is the most regulated, highest-taxed, most in-debt state in America. According to government data, from the municipal to the state level, California governments have more than $1.1 trillion in debt – much of that tied to pensions.

Beyond debt, Governor Brown recently signed a huge tax increase featuring a top rate of 13.3%. Overall, California taxes are 42% higher than Texas. California also has the most extreme/job-threatening global warming law in the world, which includes a 15-cent gas tax increase slated to take effect in 2015 – on top of the already record gas prices.

California is going down.  It's only a matter of when.

[zibazinski]

Nope, they will just keep raising taxes. That's what everyone else does.

[djAdvocate]

Aug 20, 2014 8:39:28 GMT -5 AgeOfEnlightenmentSCP said:

Aug 19, 2014 12:51:55 GMT -5 djAdvocate said:

www.sco.ca.gov/eo_pressrel_15182.html

According to the monthly report covering California's cash balance, receipts and disbursements in June 2014, the General Fund had $1.9 billion in cash on June 30, marking the first time it has ended the fiscal year in the black since 2007, when it ended the year with $2.5 billion in the bank.

Texas, lick it! 

Virgil: www.michaeljfox.org/

Whew! Well we can all relax now. 

i honestly don't give a crap what y'all do.  it is not your state.

Well, except for...
www.forbes.com/sites/thomasdelbeccaro/2014/08/19/calfiornias-economic-collision-course-immigration-and-water/

Also, more than 30% of the nation’s welfare recipients are Californians – even though California has just 12% of the nation’s population. It is not surprising, therefore, that California is ranked number one in poverty.

The cause for those bad statistics is bad government policy. California is the most regulated, highest-taxed, most in-debt state in America. According to government data, from the municipal to the state level, California governments have more than $1.1 trillion in debt – much of that tied to pensions.

there is no legal requirement to pay on pensions once the fund has run out.  Forbes and you keep harping on this, but it really is a non-issue, unless you are a public servant banking on that pension.

Beyond debt, Governor Brown recently signed a huge tax increase featuring a top rate of 13.3%. Overall, California taxes are 42% higher than Texas. California also has the most extreme/job-threatening global warming law in the world, which includes a 15-cent gas tax increase slated to take effect in 2015 – on top of the already record gas prices.

if Obama did the same, the FEDERAL budget would be balanced.

California is going down.  It's only a matter of when.

nah.  we'll be fine.

[AgeOfEnlightenmentSCP]

Aug 20, 2014 8:57:10 GMT -5 zibazinski said:

Nope, they will just keep raising taxes. That's what everyone else does.

That's what they'll do, alright- and that's why CA will eventually collapse.  No way CA can afford to pay over $1,100,000,000,000 in debt.  It's a mathematical fact that CA will eventually go bankrupt.  They will ask for a federal bailout and we'll hear all about how CA is "TBTF", however, there's a good chance the Federal government will be bankrupt by then, so it may not matter.

[djAdvocate]

Aug 20, 2014 10:04:22 GMT -5 AgeOfEnlightenmentSCP said:

Aug 20, 2014 8:57:10 GMT -5 zibazinski said:

Nope, they will just keep raising taxes. That's what everyone else does.

That's what they'll do, alright- and that's why CA will eventually collapse.  No way CA can afford to pay over $1,100,000,000,000 in debt. 

we don't have $1.1T in debt, so there is nothing to "pay".  the underfunding will be passed down to pensioners.  tough boogers.

edit: incidentally- California ranks 32nd worst in pension coverage, meaning that nearly 2/3 of the states have worse situations than us.  Florida is @ 39th, with only 4% better coverage.  Illinois is the worst, of course.  we have talked about this before, tho, right?

www.bloomberg.com/visual-data/best-and-worst/most-underfunded-pension-plans-states

[The Captain]

Aug 20, 2014 10:09:32 GMT -5 djAdvocate said:

Aug 20, 2014 10:04:22 GMT -5 AgeOfEnlightenmentSCP said:

That's what they'll do, alright- and that's why CA will eventually collapse.  No way CA can afford to pay over $1,100,000,000,000 in debt. 

we don't have $1.1T in debt, so there is nothing to "pay".  the underfunding will be passed down to pensioners.  tough boogers.

edit: incidentally- California ranks 32nd worst in pension coverage, meaning that nearly 2/3 of the states have worse situations than us.  Florida is @ 39th, with only 4% better coverage.  Illinois is the worst, of course.  we have talked about this before, tho, right?

www.bloomberg.com/visual-data/best-and-worst/most-underfunded-pension-plans-states

Did you have to remind me?

[ArchietheDragon]

Aug 20, 2014 10:09:32 GMT -5 djAdvocate said:

Aug 20, 2014 10:04:22 GMT -5 AgeOfEnlightenmentSCP said:

That's what they'll do, alright- and that's why CA will eventually collapse.  No way CA can afford to pay over $1,100,000,000,000 in debt. 

we don't have $1.1T in debt, so there is nothing to "pay".  the underfunding will be passed down to pensioners.  tough boogers.

true dat. 

[djAdvocate]

Aug 20, 2014 11:59:24 GMT -5 ArchietheDragon said:

Aug 20, 2014 10:09:32 GMT -5 djAdvocate said:

we don't have $1.1T in debt, so there is nothing to "pay".  the underfunding will be passed down to pensioners.  tough boogers.

true dat. 

thanks, arch.  but after Paul said this crap for about the 10th time, i looked into the pension fund, and the agreement the state has with CALPERS.  it turns out that CALPERS is under no obligation to fund ACCORDING TO PROJECTIONS, only to what the fund contains.  it also turns out that CALPERS is not backed by the state of CA- so any shortages CANNOT be put on the books of CA.  it is actually quite simple accounting.  CALPERS is a separate account.  it is neither a CA asset NOR a liability.  period.

edit: right now, CALPERS will pay out 75 cents on the dollar.  that is not what they PROJECTED, but it is not chicken feed, either.

for the record, the SS "trust fund" is done in precisely the same way.  the legislature can borrow from the assets and write them debt obligations, but they are not required to pay ANY shortfalls the fund might have.  Reagan knew this well, which is why he passed the largest tax INCREASE in US history in 1986(?).  wasn't going to have that hung around his neck.  smart guy.

[djAdvocate]

Aug 20, 2014 11:57:18 GMT -5 The Captain said:

Aug 20, 2014 10:09:32 GMT -5 djAdvocate said:

we don't have $1.1T in debt, so there is nothing to "pay".  the underfunding will be passed down to pensioners.  tough boogers.

edit: incidentally- California ranks 32nd worst in pension coverage, meaning that nearly 2/3 of the states have worse situations than us.  Florida is @ 39th, with only 4% better coverage.  Illinois is the worst, of course.  we have talked about this before, tho, right?

www.bloomberg.com/visual-data/best-and-worst/most-underfunded-pension-plans-states

Did you have to remind me?

you have my sympathies.  if you want a ray of sunshine, the underfunding appears to have leveled off in the last 3 years.  in other words, it is not really getting worse.  hopefully, it will get better. 

[The Captain]

Aug 20, 2014 12:37:16 GMT -5 djAdvocate said:

Aug 20, 2014 11:57:18 GMT -5 The Captain said:

Did you have to remind me?

you have my sympathies.  if you want a ray of sunshine, the underfunding appears to have leveled off in the last 3 years.  in other words, it is not really getting worse.  hopefully, it will get better. 

That underfunding leveling off is almost entirely due to the improvements in the stock market.  No specific action on the part of our elected representatives caused any movement.

Which is, of course, the probelm.

[djAdvocate]

Aug 20, 2014 13:05:56 GMT -5 The Captain said:

Aug 20, 2014 12:37:16 GMT -5 djAdvocate said:

you have my sympathies.  if you want a ray of sunshine, the underfunding appears to have leveled off in the last 3 years.  in other words, it is not really getting worse.  hopefully, it will get better. 

That underfunding leveling off is almost entirely due to the improvements in the stock market.  No specific action on the part of our elected representatives caused any movement.

Which is, of course, the probelm.

OOF!  i had no idea.  argh.  ok, i have nothing good to say now.  hang in there. 

[Wisconsin Beth]

Move North to Wisconsin.  

[djAdvocate]

Aug 20, 2014 13:15:44 GMT -5 Wisconsin Beth said:

Move North to Wisconsin.  

yeah, Wisconsin has the best funded pensions in the US (they have for years).

[The Captain]

Aug 20, 2014 13:15:44 GMT -5 Wisconsin Beth said:

Move North to Wisconsin.  

Where do you think I'm planning to retire?