Monday, July 23, 2012

State of California Cooking Books, Hiding Assets To Justify Raising Taxes

**UPDATE** California Department of Parks and Recreation caught hiding $52 million in budget assets the past 12 years.  Story here.

I don't purport to be capable of analyzing the California State budget but a blog article's being widely circulated under the heading California Government Hides Billions From Taxpayers by Clint Richardson that does.

The mountain of information in the article appears to be credible citing accurate sources.  If this article is indeed accurate and true, it would mean Governor Jerry Brown is a tremendous liar by omission seeking to cruelly raise taxes on Californians based on contrived circumstances.  To reduce the mountains of information the article cites and assembles, I'll use the blog article's simplified premise:

The Big Lie
Over the past weekend, Gov. Jerry Brown of California took to the safety of YouTube to reveal that the Golden State’s budget deficit is now $15.7 billion, far greater than the original $9.2 billion estimate in January. (CNN, May 15, 2012)
The Simple Truth
The State Government of California has $100′s of billions in liquid investments and assets, could easily pay off all of its debt tomorrow, and would have $100′s of billions left over.
"What if I could show you over $577 billion in investment fund balances that aren’t being reported by the California State Government on its budget report?
Well that is what I’m about to do…

In this article we will once again show the purposeful omission of massive amounts of wealth by your government. If you live in California, this may well be the most important thing that you read this year. If you live elsewhere… rest assured that the same holds true in your State, County, Municipality, School and other districts.

In what can only be called a recently government produced propaganda video, California Governor Jerry Brown is addressing and purposefully lying to the people of California, where he nicely threatens to cut school funding by multiple billions if the people of the State do not vote in favor of his new budget plan." - California Government Hides Billions From Taxpayers - Reality Blog

Governor Jerry Brown is being accused of lying by omission in this video due to recent disclosure in the Reality Blog article.

In summary, the article purports to make the case that:

* the top managers of the California state government knowingly cook their books

* they hide considerable amounts of money (CAFR) that the California state government owns

* they leverage the public’s ignorance of CAFR into a “choose between more debt, more taxes and less services” lose-lose curse

* if they had some sense of morality and included CAFR in the accounting they share with “us the gullible people,” the above-mentioned curse would invert into some “choose between less debt, less taxes and more services” win-win blessing

* they seem committed to knowingly hide CAFR against the common good.

If what this blog article says is true, it means criminals are running the State of California government who have Governor Brown in their pocket.  It also seems California's not an isolated state either when it comes to this scam on taxpayers getting shafted.
"Great report. What you failed to mention was that this is the case with every state and the federal government. It is a conspiracy to destroy prosperity for Americans. Rampant corporatism and the banksters see economic ruin as a means to reduce the population and to get complete control. This is war. Dig them out of their safe little havens. End the Federal Reserve banks and financial institutions that are too big to fail, what else can be done with them that isn’t going to destroy America?" - Comment
The comment reply was:
The article did mention it. There is a lot to read so maybe you missed where it says,
“If you live in California, this may well be the most important thing that you read this year. If you live elsewhere… rest assured that the same holds true in your State, County, Municipality, School and other districts.”and it says: “Each County, city, district, and other local governments and pension funds have their own CAFR’s with their own funds and hidden wealth – hidden in plain sight.”
These corrupt politicians most always prove they're nothing but scum out to rob the taxpayers of their life savings!