At This Rate, California
- Thread starter HeSaidSheSaid
- Start date
Mega slap.
ZERO!
Turns out they're not really "improving", ol' pal.
California Hit with $31.6 Billion Audit Misstatement
The California Bureau of State Audits set off a scandal on June 1st by disclosing that the State Controllerâs Office made accounting misstatements amounting to $31.65 billion. The timing of the announcement may be devastating to the Democrats who expected to use their super-majority to pass billions of dollars in increased spending, but may now find the net effects of the accounting restatements are a $7 billion General Fund deficit.
California Governor Jerry Brownâs and State Controller John Chiangâs staff refused to go on camera and answer questions as the news broke. To give a perspective on the size of the accounting misstatements discovered by the Bureau of State Audits, the $31.65 billion in errors equals about a third of Californiaâs $96.3 billion General Fund Budget for 2013-14. The improper accounting treatments included:
$7.7 billion â Understated federal trust fund revenues and expenditures;
$653 million â Overstated general fund assets and revenues;
$8 billion â Overstated California State Universityâs bond debt;
$9.1 billion â Understating a public building construction fund; and
$6.2 billion â Overstatement of deferred tax-revenue.
As the former Treasurer of Orange County, California it is my preliminary judgment that under state law the negative $7.847 billion impact from overstating general fund assets and revenues and overstating deferred tax revenues may create an âon-budgetâ deficit to the stateâs $96.3 billion âGeneral Fund Budget.â
It is also my informed judgment that the positive $26.8 billion from understating federal trust funds, overstating of the State University bond debt and understating of the public building construction fund reserve are good news for the state. These positives are âoff-budgetâ issues that are considered outside the stateâs General Fund Budget. These monies cannot be transferred into the General Fund to cover any new deficit.
Sacramento State University accounting Professor John Corless told CBS News that he agrees with auditors that those glaring mistakes should have been caught, âSomeoneâs not using their equipment right, and theyâre not using their heads.â
Republican consultant Mitch Zak called for an investigation saying âItâs offensive as a taxpayer. Thereâs no consideration it appears if they misstate or mismanage my tax dollars that thereâs any retribution.â
Neither State Controller Chiang nor his âJohn Chiang for Treasurer 2014â campaign spokesman would respond to reportersâ questions. None of Chiangâs opponents for State Treasurer got back to CBS13 with comments.
The State Controllerâs office blamed high staff turnover, lack of qualified staff, budget cuts, and late and incorrect data from numerous agencies for the errors. In a statement issued to CBS13 in Sacramento, the office said âAll issues were corrected and identified before the final report was published, and not one cent of taxpayer dollars was affected.â
The officeâs statement may be technically true, but the California Controllerâs audit authority is independent of both the Governor and the Legislature. The California State Constitution requires an annual balanced budget as documented by the State Controller.
Consequently, the Governorâs Budget and all the Legislatureâs spending actions must comply with the monthly financial statements and annual audits issued by the Controllerâs office. The size of the newly discovered accounting misstatements will have a major impact on the Democratsâ spending.
Controller Chiang must not have known the Bureau of State Auditâs report would be so devastating, because on May 20th he issued a press release regarding his audits:
âAudits protect Californians by highlighting problems and restoring accountability. The audits have served as catalysts for greater transparency and improved management of taxpayer dollars, allowing us to transform an accounting office into an accountability office.â
ZERO!
Turns out they're not really "improving", ol' pal.
California Hit with $31.6 Billion Audit Misstatement
The California Bureau of State Audits set off a scandal on June 1st by disclosing that the State Controllerâs Office made accounting misstatements amounting to $31.65 billion. The timing of the announcement may be devastating to the Democrats who expected to use their super-majority to pass billions of dollars in increased spending, but may now find the net effects of the accounting restatements are a $7 billion General Fund deficit.
California Governor Jerry Brownâs and State Controller John Chiangâs staff refused to go on camera and answer questions as the news broke. To give a perspective on the size of the accounting misstatements discovered by the Bureau of State Audits, the $31.65 billion in errors equals about a third of Californiaâs $96.3 billion General Fund Budget for 2013-14. The improper accounting treatments included:
$7.7 billion â Understated federal trust fund revenues and expenditures;
$653 million â Overstated general fund assets and revenues;
$8 billion â Overstated California State Universityâs bond debt;
$9.1 billion â Understating a public building construction fund; and
$6.2 billion â Overstatement of deferred tax-revenue.
As the former Treasurer of Orange County, California it is my preliminary judgment that under state law the negative $7.847 billion impact from overstating general fund assets and revenues and overstating deferred tax revenues may create an âon-budgetâ deficit to the stateâs $96.3 billion âGeneral Fund Budget.â
It is also my informed judgment that the positive $26.8 billion from understating federal trust funds, overstating of the State University bond debt and understating of the public building construction fund reserve are good news for the state. These positives are âoff-budgetâ issues that are considered outside the stateâs General Fund Budget. These monies cannot be transferred into the General Fund to cover any new deficit.
Sacramento State University accounting Professor John Corless told CBS News that he agrees with auditors that those glaring mistakes should have been caught, âSomeoneâs not using their equipment right, and theyâre not using their heads.â
Republican consultant Mitch Zak called for an investigation saying âItâs offensive as a taxpayer. Thereâs no consideration it appears if they misstate or mismanage my tax dollars that thereâs any retribution.â
Neither State Controller Chiang nor his âJohn Chiang for Treasurer 2014â campaign spokesman would respond to reportersâ questions. None of Chiangâs opponents for State Treasurer got back to CBS13 with comments.
The State Controllerâs office blamed high staff turnover, lack of qualified staff, budget cuts, and late and incorrect data from numerous agencies for the errors. In a statement issued to CBS13 in Sacramento, the office said âAll issues were corrected and identified before the final report was published, and not one cent of taxpayer dollars was affected.â
The officeâs statement may be technically true, but the California Controllerâs audit authority is independent of both the Governor and the Legislature. The California State Constitution requires an annual balanced budget as documented by the State Controller.
Consequently, the Governorâs Budget and all the Legislatureâs spending actions must comply with the monthly financial statements and annual audits issued by the Controllerâs office. The size of the newly discovered accounting misstatements will have a major impact on the Democratsâ spending.
Controller Chiang must not have known the Bureau of State Auditâs report would be so devastating, because on May 20th he issued a press release regarding his audits:
âAudits protect Californians by highlighting problems and restoring accountability. The audits have served as catalysts for greater transparency and improved management of taxpayer dollars, allowing us to transform an accounting office into an accountability office.â
What I find particularly amusing is that most of the time it's easy to prove how foolish Ricter's thoughts are in the here and now. For the few where that is difficult, we need only wait. They out themselves if given time.
Apparently a much larger part of life when it comes to the crooks who are constantly trying to cook California's books to spend more money. Its not just an unusual "one off" situation when it happens year after year after year.
