CAFR: If $600B ‘fund’ can’t fund $27B pension, $16B deficit, why have it?

Carl Herman
Washington’s Blog
June 18, 2012

RELATED: Comprehensive Annual Financial Report for the Year Ended June 30, 2011
RELATED: 2011 CalPERS Comprehensive Annual Financial Ended June 30, 2011
RELATED: CA CAFR shows $600 billion tax surplus, 1% demand ‘austerity’

Let’s summarize what we’ve documented so far about the data of California’s 2011 Comprehensive Annual Financial Report (CAFR) and what it means for the state’s 12 million households:

• Officials and corporate media never remind taxpayers, but California holds $600 billion in taxpayer cash and investments ($50,000 non-disclosed assets per household).
• California’s ~14,000 various government entities’ CAFRs have a sampled-data total estimate of $8 trillion in surplus taxpayer assets ($650,000 non-disclosed assets per household). For example, page 63 of L.A. County’s 2011 CAFR shows $66 billion in cash and investments.
• The state’s $600 billion cash and investment fund is explained as designated for funding state pensions. The CAFR data show the opposite: $27 billion in pension cost receives only $1 billion income from $600 billion in withheld taxpayer assets.
• Californians are taxed $19 billion to pay for pensions (95% of the public cost) while also losing $50,000 in assets the state withholds in cash and investments.
• The $600 billion fund in cash and investments contributed 4% of the state’s $27 billion pension costs, but since 2008 has been “managed” to cost taxpayers more than the net income it produces.
• Governor Brown is silent about the $600 billion in surplus cash and investments, claiming the $16 billion budget deficit can only be addressed by austerity – massive funding cuts to our essential infrastructure.

So the natural question is if the state’s withholding of $600 billion in our cash and investments does not fund pensions, address a budget deficit, or prevent devastation to infrastructure, how can we best restructure the purpose and use of OUR MONEY for optimal public benefits?

I asked this of my two state representatives, Senator Carol Liu and Assemblymember Anthony Portantino. Carol and her consultant, Robert Oakes, has not yet answered this question. Anthony responded, but failed to address the question.

I’m also addressing law enforcement whether such non-disclosure of withheld taxpayer cash and assets by public officials is a crime while they tell us the only option is our austerity.

I’ll write with updated status of Senator Liu, Assemblymember Portantino, and law enforcement agencies.

Remember, this is a case study where I’m investing my time to explore and document this issue in the public interest. You are welcome to do the same

Alex Jones Report on The CAFR

This article was posted: Monday, June 18, 2012 at 1:00 pm

Tags: domestic news, economics, financial, money

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