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San Marino is a Fiscal Illusion

There is a growing awareness among informed citizens that America is poised on a fiscal abyss.  Government in general, and its spending in particular, is out of control at every level.  It is not just the federal or state governments that are out of control.  The cities and counties are also fiscal disasters. You will often hear state governors, particularly presidential candidates, criticize the federal government by pointing out that states cannot print money and therefore must balance their budgets.  They present this presumed fiscal prudence as a qualification for higher office. They are lying. In city after city and state after state, the unfunded pension debt threatens to sink the state.  While they claim to have passed a balanced budget, they are actually using accounting gimmicks to get there.  Their favorite gimmick is to underestimate, i.e., lie, about whether they have set aside enough money to pay for the pension promises made to public employees by politicians eager to curry their favor or reward them for their support. California Pension Debt:  $1 Trillion and Growing! Joe Nation, Ph.D., Project Director at the Stanford Institute for Economic Policy Research, is the leading authority on California pension liabilities.  Under his able direction, the Stanford Institute has developed a web site that tracks the pension debt and liabilities for the State of California and each city and county within it.  [www.pensiontracker.org]  As you can see for yourself, the cumulative pension debt in California for all state, county and local entities in Fiscal Year 2015 is $992 billion, which comes to just under $77,000 per household.  We talk about this in more detail below. A Case in Point:  The City of San Marino By the way, if you [...]

By |August 29th, 2017|Categories: Uncategorized|0 Comments