California Now Has the Largest Unfunded Liabilities in the US: $222 Billion | John Moorlach

In a recent interview, former Orange County Supervisor John Moorlach expressed concern over California’s delayed and troubling financial report, as well as the state’s growing budget deficits and debt.

According to Mr.Moorlach, California was over 14 months late in releasing its annual comprehensive financial report for the fiscal year 2021-2022. This was unprecedented, as all other states had issued their audits on time. The delayed report revealed that California’s unrestricted net deficit had increased by a staggering $47 billion, despite 47 other states improving their financial positions with federal COVID relief funds.

Mr. Moorlach questioned why California residents and legislators were approving new spending, such as a $6 billion bond measure, without knowledge of the full extent of the state’s financial challenges. He argued for greater transparency from Sacramento on budget and accounting issues.

Looking ahead, Mr. Moorlach warned that California will face budget deficits once COVID relief winds down. He advised preparing for economic downturns which could reduce revenues and increase expenses like pension costs. While debt forgiveness from the federal government may provide temporary relief, long-term reforms are needed to get California’s fiscal house in order.

Overall, this interview highlights the need for candid discussion of California’s growing structural deficits and debt. With prudent long term planning and budgeting, state leaders can help secure California’s financial future for generations to come.