$12,000 more debt for the Calizuela family

LA City watch spots a borrowing scam in Calizuela

  While each of these three measures will appeal to our sympathies, the State’s taking on of more debt in boom times is fiscally irresponsible and not in the best interests of Californians.  The State has $73 billion in outstanding general obligation bonds and is authorized to issue another $31 billion in debt, a total of $104 billion.  This is the equivalent of $10,000 for the average family. If the voters approve the three bond measures, it would increase the debt level by 14%, to almost $120 billion, or $12,000 for the average family. But this debt does not include the unfunded pension liabilities for CalPERS (California Public Employees Retirement System) and other post-retirement medical liabilities that are in the range of $250 to $300 billion.  This assumes an overly optimistic investment rate assumption of 7%.  If a more realistic rate of return was used, these debt like retirement obligations would soar by more at least another $100 billion to $350 to $400 billion, or $35,000 to $40,000 for the average family. Combined with the general obligation debt, the average family will be looking at a burden of about $50,000 in debt if the three propositions are approved. 

Three measures to raise debt on Calizuela families, and business are gearing up to exit on this. 

The gas tax is up for recall, and along with the other four or five debt and tax increases on the ballot, the Calizuela taxpayer needs to revolt.