By David Crane | Yesterday my Democratic Party tweeted that California was “paying down debt.” Not true.
Net, California added more than $200 billion in debt over the last decade. The only debt paid down was budgetary debt of ~$30 billion, a fraction of added debt of ~$250 billion.
The consequences of increasing debt are decreasing shares of government budgets being available for services, illustrating Thomas Piketty’s point in Capital In The 21st Century that debt “devours the future.”
- GO and self-liquidating debt increased more than $20 billion. See https://www.treasurer.ca.gov/publications/dar/2017.pdf and https://www.treasurer.ca.gov/publications/dar/2007.pdf
- School pension debt increased $85 billion to $107 billion. See https://www.calstrs.com/sites/main/files/file-attachments/cafr2017.pdf and http://www.pionline.com/article/20180511/ONLINE/180519963/calstrs-funded-status-declines-to-626-following-rate-of-return-decrease.
- State and local pension debt increased more than $100 billion. See https://www.calpers.ca.gov/docs/forms-publications/cafr-2017.pdf
- State OPEB Debt increased more than $45 billion. See https://www.sco.ca.gov/Content-Images/ARD/AV_Report_July_1_2007.pdf and https://www.sco.ca.gov/Content-Images/ARD/AV_Report_June_30_2017.pdf
- Re short term budgetary debt see http://www.ebudget.ca.gov/2012-13-EN/pdf/BudgetSummary/Introduction.pdf and http://www.ebudget.ca.gov/2018-19/pdf/BudgetSummary/FullBudgetSummary.pdf
- Not including OPEB debt added by schools and local governments or pension and OPEB debt added by the University of California.