California State Controller Releases CAFR

State Drowning with Quarter-Trillion Net Deficit
Wednesday, March 29, 2017

The California State Controller's Office released the 2016 Comprehensive Annual Financial Report (CAFR) today. As we warned last year, the state is not directly accounting for all of its unfunded liabilities as the growing retiree medical debt of $76.7 billion is once again not included in the report.

The Unrestricted Net Deficit for governmental activities has not changed significantly, going from $169.7 billion to $168.5 billion. This is still the highest deficit of any state in the nation. But California's fiscal shape is actually worse. If the retiree medical unfunded liability is included, the state is actually upside down by nearly a quarter-trillion dollars ($245.2B)!

After Proposition 30 and its higher taxes and after the Proposition 2 requirement to set aside rainy day funds, California's Balance Sheet is not improving. The Governor is not moving the dial! Consequently, Sacramento is saddling every man, woman, and child in California with a $6,246 per capita liability!

CAFR History: Total Liability