The state of California had its finances audited and it was found that the state’s net worth is a negative $127.2 billion. Wow!
Were California’s state government a business, it would be a candidate for insolvency with a negative net worth of $127.2 billion, according to an annual financial report issued by State AuditorElaine Howle and the Bureau of State Audits.
The report, which covers the fiscal year ending June 30, 2012, says that the state’s negative status — all of its assets minus all of its liabilities — increased that year, largely because it spent more than it received in revenue. (Read More)
But they think the new sales tax increase will take care of it all. Yeah, right.
I hate to think of what the net worth of the United States would be with the $16.6 trillion national debt plus all of the other unfunded liabilities.