CA’s Next Budget Will Not Tell The Truth

On January 10 Governor Jerry Brown will present his proposed budget for the 2018–19 fiscal year. That budget will not reflect financial reality. That’s because state and local governments operate under accounting rules that enable untruthful financial reporting. For example, Brown’s last proposed budget in January 2017 ignored expenses of $16 billion, as explained hereherehere and here. Those unreported expenses magically became debt, none of which was presented to citizens for their approval.