Why do Governors, like Jerry Brown, say their states are bankrupt when the CAFRs show that they have billions?It has been reported that trillions of collective dollars not shown in government Budget reports are shown through Government CAFR reports and they are virtually never openly-discussed by the syndicated NEWS media, both the Democratic and Republican Party members, the House, Senate, and organized public education.... |
The report you described includes all measurable assets. That means that, among many other things, the value of all land and buildings is included. Parks totaling millions of acres have a value placed on them, and that value is included in the report you mentioned. The market value of school buildings is included. The market value of every government motor vehicle (school buses, highway trucks, snow plows, riding lawn mower tractors, etc.) is included. The market value of existing office furniture is included.
The "bottom line" of such an accounting of all assets does not reveal the truly liquid capital of a government. To gain access to the cash value of such "assets" would require selling parks, schools, city hall, and even some roads and highways. It's important to know the value of such assets, but in most cases such assets would not be useful in gathering operating money for a state, city, town, village or county.
Such accounting is not a total waste of time. Ideally, such detailed reports would bring to the attention of responsible people important assets that should be sold - like unused office buildings. I have no doubt that many assets should be sold - like unused buildings, unused cars and trucks, and maybe other excess things that could be sold. I would not, however, want state parks to be sold to developers just to make the state more money to be wasted. I think government owned real-estate almost never should be sold. If anything, it might be wise to lease such property if it is not needed for public/government use.
Peace be with you.
The general idea is to be sure to keep a distinction between private wealth by converting liability into public debt.
I'll give you an answer that is shorter than any of the mess you posted here...
CALIFORNIA IS BROKE. REELECTING JERRY BROWN, WHO IS ONE OF THE GUYS WHO BANKRUPTED IT IN THE FIRST PLACE, WAS NOT A SOLUTION.
Did that sum it up for you?
Would you believe there are 3 trillion in the treasury?
When Jerry Brown was first govenor we had a surplus.
