Sacramento, CA (June 15, 2015) – Today, Senator Moorlach (R-Costa Mesa) made the following comments from the Senate Floor on how the passage of AB93 will only thrust California towards ‘fiscal implosion:
“This budget before us departs from Governor Brown’s call for greater fiscal restraint. Instead, it takes the most fiscally optimistic revenue estimates and spends up to that line. And many expenditures are also optimistic, if recent trends continue.
The State Legislature should not use the higher revenue projections provided by the Legislative Analyst’s Office. Our leadership should under promise and over deliver. Not the opposite.
This budget doesn’t make a dent in our $72 billion in unfunded retiree medical costs, or the over $100 billion + in unfunded pension liabilities.
Two areas of obvious concern: California is one of the top five states when it comes to providing child care for parents of school age students, while its overall fiscal condition is in the bottom five. Child care, as compassionate as it may be, is not deficiently funded and is not a top priority.
My preference is that the Legislature should be focused on FOUR areas when it comes to disbursing new revenues. It should devote 25 percent to additional funding toward the unfunded pension liabilities; 25 percent to begin the funding for the unfunded employee retiree medical liabilities; 25 percent toward repaying internal and external funds that were depleted during the Great Recession; and 25 percent to pay for the deferred maintenance to roads and structures over the past decade.
Staying on this current course will lead to a fiscal implosion. The time to change course is now. I stand opposed to AB 93.”
Press Contact: Amanda Smith @ 714-662-6050, firstname.lastname@example.org
State Senator John Moorlach is a nationally recognized budget, finance, and fiscal policy expert. Moorlach graduated from CA State University in Long Beach in 1977, passed the C.P.A. exam in 1978, and completed his studies for the Certified Financial Planner designation in 1987. He earned a Certificate in Public Finance from the University of Delaware, Division of Continuing Education in 1995, the Certificate of Achievement in Public Plan Policy (CAPPP) in Employee Pensions in 1999 and the Trustees Masters Program in 2003 through the International Foundation of Employee Benefit Plans, and the New Supervisors Training Institute in 2007 from CA State University in Sacramento in cooperation with their Center for California Studies.