So CalPERS’ actuary, in a fit of unusual honesty, says the pension giant’s finances are in bad shape in the long run and need to be firmed up. But Alan Milligan realizes that asking his labor-dominated board of directors to have public employees pay more toward pension costs is a nonstarter. So what does he do? (Read the rest, at the link, and then...) Feel free to scream or cry or laugh or do all three. CalPERS’ board is hostile to having to properly fund pensions because then there would be “less money for salaries.”
◼ CALIFORNIA NOW HAS NEGATIVE NET WORTH OF $127.2 BILLION - William Bigelow/Breitbart
A new financial report by California State Auditor and the Bureau of State Audits shows that California is heading down the tubes, and fast—it now has a negative net worth of $127.2 billion. It’s actually worse than that; although the report counted the state's long-term obligations at $167.9 billion, that doesn’t count unfunded liabilities for state employees' future pensions or the $60 billion in unfunded liabilities for retiree health care. Both of those costs have been listed by the Governmental Accounting Standards Board and Moody's as costs that states and localities should include in their budgetary assessments.
◼ California and Cyprus - Le-gal In-sur-rec-tion
◼ State auditor: California's net worth at negative $127.2 billion - Sacramento Bee
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 Auditor Elaine 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.
