Commentary
Back in 1994, I predicted what was, at the time, the largest municipal bankruptcy in United States history. As a county treasurer, I then served with the team to successfully exit Chapter 9. And later, as a county supervisor, to implement defined benefit pension plan and retiree medical (also known as other post-employment benefits) reforms. I then worked in the state Senate to improve the fiscal status of California’s cities and counties.
Before all of this fun, I was a licensed certified public accountant and certified financial planner. I have major concerns about debt, personal and corporate. So, I now review the audited financial statements of the Golden State’s cities, school districts, counties and even the 50 states. Why? To see how they are managing their finances. Do they have enough assets to cover their liabilities? Are the unfunded employee benefit plan annual required contributions crowding out key public services?…