In the land of Oz, up is down and black is white and unfunded liabilities are no big deal when you can rob Peter to pay Paul on borrowed money. With this kind of accounting the odds are getting close to even that California will be the first state to experience a fiscal meltdown. In as much as California will never cut social welfare programs or reform grotesquely bloated government employee pension plans, the only possible answer is for the federal government to bail out the state of fruits and nuts.
Here's the latest idiocy passing as governance for a state filled with natural resources that is being bled dry by liberal politicians who run the state at all statewide elected offices and have a majority in both houses of the legislature.
California is currently running a $16 billion dollar budget deficit to boot. Governor Jerry "Moonbeam" Brown, stuck in the 1960's, is juggling the state books as fast as he can. The following illustrates Brown's juggling act.
[...] Cash-strapped California plans to borrow $312.6 million from the state’s disability insurance trust fund to make this year’s interest payment on a federal loan for unemployment benefits.
It is the second year in a row the state has raided the disability insurance trust fund to pay millions of dollars in interest on the money it has borrowed to cover unemployment checks. Last year the state took $303.5 million from disability monies.
The state unemployment insurance trust fund ran out of money in 2009 as the recession raged prompting California to begin borrowing from Uncle Sam to continue paying unemployment benefits.
As of the end of 2011, California was running a trust fund deficit of $9.8 billion. That is expected to balloon to $10.2 billion this year and $10.3 billion in 2013. [...]