Lambda Alpha International Orange County Chapter

Who Am I? CSULB College of Business Administration – 1977 Distinguished CBA Alumni – 2014 CPA Firm – 1976 to 1995 Partner – Balser, Horowitz, Frank & Wakeling Now Ronald Blue & Co. OC Treasurer-Tax Collector – 1995-2006 OC Supervisor, 2nd District – 2006-2015 California State Senator, 37th District – March 2015-? Theme – Like to fix organizations

Five Key Measurements of California’s Fiscal Health 1. Tax Rates *The state has the nation’s highest income, sales and gas taxes, when cap and trade is included.

Five Key Measurements of California’s Fiscal Health 1. Tax Rates *The state has the nation’s highest income, sales and gas taxes, when cap and trade is included. *California also has the highest corporate tax in the western United States and the fourteenth highest property tax.

Five Key Measurements of California’s Fiscal Health 1. Tax Rates *The state has the nation’s highest income, sales and gas taxes, when cap and trade is included. *California also has the highest corporate tax in the western United States and the fourteenth highest property tax. *Puts California fourth in overall tax burden on a per capita basis.

Five Key Measurements of California’s Fiscal Health 2. Unfunded Pension Obligations *The Legislative Analyst’s Office estimates current CalPERS, CalSTRS and UC Pension unfunded liabilities at approximately $140 billion.

Five Key Measurements of California’s Fiscal Health 2. Unfunded Pension Obligations *The Legislative Analyst’s Office estimates current CalPERS, CalSTRS and UC Pension unfunded liabilities at approximately $140 billion. *Pew Charitable Foundation, using 2012 data, found California is ranked highest in the nation for unfunded pension obligations

Five Key Measurements of California’s Fiscal Health 3. Unfunded Retiree Medical Obligations *In 2013 California ranked second in the nation with $66.0 billion in unfunded retiree medical costs. New York was number one at $67.7 billion.

Five Key Measurements of California’s Fiscal Health 3. Unfunded Retiree Medical Obligations *In 2013 California ranked second in the nation with $66.0 billion in unfunded retiree medical costs. New York was number one at $67.7 billion. *California State Controller’s 2014 data suggests that California has since surpassed New York and now has $71.8 billion in liabilities.

Five Key Measurements of California’s Fiscal Health 4. Deferred Infrastructure Maintenance *California has 31,827 miles of major roads and at least 34 percent of these are rated in “poor” condition.

Five Key Measurements of California’s Fiscal Health 4. Deferred Infrastructure Maintenance *California has 31,827 miles of major roads and at least 34 percent of these are rated in “poor” condition. *The Reason Foundation’s Adrian Moore recently pegged the unfunded road maintenance number at $59 billion.

Five Key Measurements of California’s Fiscal Health 5. Unrestricted Net Assets/Deficits *California’s most recent Comprehensive Annual Financial Report (CAFR) shows an unrestricted net deficit of $117 billion.

Five Key Measurements of California’s Fiscal Health 5. Unrestricted Net Assets/Deficits *California’s most recent Comprehensive Annual Financial Report (CAFR) shows an unrestricted net deficit of $117 billion. *The unrestricted net assets (or deficit) is a summary of the state’s available assets after removing fixed assets, minus related outstanding debt obligations, nongovernmental activities, and funds belonging to others.

State of California Annual Unrestricted Net Assets FYE UNA Per Capita Governor 6/30/99 $ 1,533,113 $ 46 Wilson/Davis

State of California Annual Unrestricted Net Assets FYE UNA Per Capita Governor 6/30/99 $ 1,533,113 $ 46 Wilson/Davis 6/30/00 6,531,331 192 Davis

State of California Annual Unrestricted Net Assets FYE UNA Per Capita Governor 6/30/99 $ 1,533,113 $ 46 Wilson/Davis 6/30/00 6,531,331 192 Davis 6/30/01 7,001,095 203 Davis

State of California Annual Unrestricted Net Assets FYE UNA Per Capita Governor 6/30/99 $ 1,533,113 $ 46 Wilson/Davis 6/30/00 6,531,331 192 Davis 6/30/01 7,001,095 203 Davis 6/30/02 (19,417,429) (553) Davis

State of California Annual Unrestricted Net Assets FYE UNA Per Capita Governor 6/30/99 $ 1,533,113 $ 46 Wilson/Davis 6/30/00 6,531,331 192 Davis 6/30/01 7,001,095 203 Davis 6/30/02 (19,417,429) (553) Davis 6/30/03 (43,927,987) (1,238) Davis

State of California Annual Unrestricted Net Assets FYE UNA Per Capita Governor 6/30/99 $ 1,533,113 $ 46 Wilson/Davis 6/30/00 6,531,331 192 Davis 6/30/01 7,001,095 203 Davis 6/30/02 (19,417,429) (553) Davis 6/30/03 (43,927,987) (1,238) Davis 6/30/04 (52,897,395) (1,474) Davis/Arnold

State of California Annual Unrestricted Net Assets FYE UNA Per Capita Governor 6/30/99 $ 1,533,113 $ 46 Wilson/Davis 6/30/00 6,531,331 192 Davis 6/30/01 7,001,095 203 Davis 6/30/02 (19,417,429) (553) Davis 6/30/03 (43,927,987) (1,238) Davis 6/30/04 (52,897,395) (1,474) Davis/Arnold 6/30/05 (52,631,090) (1,457) Arnold

State of California Annual Unrestricted Net Assets FYE UNA Per Capita Governor 6/30/06 (54,710,847) (1,514) Arnold

State of California Annual Unrestricted Net Assets FYE UNA Per Capita Governor 6/30/06 (54,710,847) (1,514) Arnold 6/30/07 (56,519,478) (1,546) Arnold

State of California Annual Unrestricted Net Assets FYE UNA Per Capita Governor 6/30/06 (54,710,847) (1,514) Arnold 6/30/07 (56,519,478) (1,546) Arnold 6/30/08 (69,346,950) (1,887) Arnold

State of California Annual Unrestricted Net Assets FYE UNA Per Capita Governor 6/30/06 (54,710,847) (1,514) Arnold 6/30/07 (56,519,478) (1,546) Arnold 6/30/08 (69,346,950) (1,887) Arnold 6/30/09 (86,302,434) (2,335) Arnold

State of California Annual Unrestricted Net Assets FYE UNA Per Capita Governor 6/30/06 (54,710,847) (1,514) Arnold 6/30/07 (56,519,478) (1,546) Arnold 6/30/08 (69,346,950) (1,887) Arnold 6/30/09 (86,302,434) (2,335) Arnold 6/30/10 (103,272,000) (2,772) Arnold

State of California Annual Unrestricted Net Assets FYE UNA Per Capita Governor 6/30/06 (54,710,847) (1,514) Arnold 6/30/07 (56,519,478) (1,546) Arnold 6/30/08 (69,346,950) (1,887) Arnold 6/30/09 (86,302,434) (2,335) Arnold 6/30/10 (103,272,000) (2,772) Arnold 6/30/11 (123,783,314) (3,285) Arnold/ Brown

Unrestricted Net Assets Per Capita State Comparison - 2011 1. Alaska (Teachers pension plan 9th underfunded) $ 27,767 Wyoming 7,508 North Dakota 3,705 Indiana (Teachers pension plan 4th most underfunded) 1,112 Ohio 950 Montana 879 West Virginia (Teachers pension plan 8th underfunded) 726 Nebraska 438 Delaware 391 Oklahoma 364

Unrestricted Net Assets Per Capita State Comparison - 2011 11. Arkansas $ 356 Idaho 302 Tennessee 208 Washington 170 Colorado 166 South Carolina 162 New Mexico 146 Texas 130 South Dakota 116 Kansas 43

Unrestricted Net Assets Per Capita State Comparison - 2011 21. Oregon $ 36 Utah 24 Iowa (7) Nevada (83) Missouri (DOT and Hwy Patrol 3rd most underfunded) (192) Virginia (197) Georgia (215) Alabama (236) New Hampshire (319) Maine (326)

Unrestricted Net Assets Per Capita State Comparison - 2011 31. Pennsylvania $ (346) North Carolina (392) Minnesota (474) Michigan (539) Arizona (656) Louisiana (Teachers 10th most underfunded plan) (730) Florida (792) Vermont (806) Mississippi (900) Rhode Island (1,370)

Unrestricted Net Assets Per Capita State Comparison - 2011 41. Maryland $ (1,411) Wisconsin (1,708) Hawaii (1,730) Kentucky (1,848) New York (2,076) California (70%) (3,285) Massachusetts (84%) (3,577) Illinois (63%) (4,818) New Jersey (60%) (5,014) Connecticut (61%) (5,789)

State of California Annual Unrestricted Net Assets FYE UNA Per Capita Governor 6/30/06 (54,710,847) (1,514) Arnold 6/30/07 (56,519,478) (1,546) Arnold 6/30/08 (69,346,950) (1,887) Arnold 6/30/09 (86,302,434) (2,335) Arnold 6/30/10 (103,272,000) (2,772) Arnold 6/30/11 (123,783,314) (3,285) Arnold/ Brown

State of California Annual Unrestricted Net Assets FYE UNA Per Capita Governor 6/30/12 (123,897,753) (3,257) Brown

California June 30, 2012 Comprehensive Annual Financial Report Total Net Assets (in thousands) ($199,955,466 - $215,406,153) $ (15,450,687) Invested in Capital Assets, Net of Related Debt (82,329,785) Restricted Resources by Outside Parties (29,464,130) Business Related Activities Net Assets 3,346,849 Unrestricted Net Assets (Deficit) $(123,897,753) Per Capita ($3,257)

State of California Annual Unrestricted Net Assets FYE UNA Per Capita Governor 6/30/12 (123,897,753) (3,257) Brown

State of California Annual Unrestricted Net Assets FYE UNA Per Capita Governor 6/30/12 (123,897,753) (3,257) Brown 6/30/13 (117,383,903) (3,085) Brown

State of California Annual Unrestricted Net Assets FYE UNA Per Capita Governor 6/30/12 (123,897,753) (3,257) Brown 6/30/13 (117,383,903) (3,085) Brown 6/30/14 (116,948,128) (3,014) Brown

State of California Annual Unrestricted Net Assets FYE UNA Per Capita Governor 6/30/12 (123,897,753) (3,257) Brown 6/30/13 (117,383,903) (3,085) Brown 6/30/14 (116,948,128) (3,014) Brown 6/30/15 ~(220,000,000) (5,670) Brown

Growth in State’s General Fund 1998-1999 $33.1 Billion 2015-2016 $65.9 Billion

Sonoma County voters reject Measure A Ryan Rabellino, a supporter for Measure A, writes down the absentee ballot results during a gathering at Mary's Pizza Shack in downtown Santa Rosa, Tuesday, June 2, 2015. (CRISTA JEREMIASON / The Press Democrat)

Thank you!