As a Certified Public Accountant and Certified Financial Planner, John Moorlach began his career in public service 20 years ago when he warned that then Orange County Treasurer-Tax Collector Robert Citron’s risky investment strategies would lead to bankruptcy. Moorlach’s warnings proved true when Orange County filed for bankruptcy protection in December 1994, then the largest municipal bankruptcy in U.S. history. He was appointed the county Treasurer-Tax Collector in 1995 and was twice re-elected. In 2006, voters elected John to serve in his first of two terms on the Board of Supervisors, where he continued his focus on reforming the county’s budget practices and sounding the alarm on the county’s growing unfunded liabilities. He served from 2015 to 2020 as the State senator for the 37th Senate district. He is now a senior fellow and director of CPC’s Center for Public Accountability.
Californians tend to be credit card debt-laden and don’t seem to mind adding more debt to their monthly financial commitments. That may be why they, as voters, do not flinch when Sacramento legislators put bond measures on the ballot. These propositions usually receive enough votes to succeed and permit the state to borrow more money....
There are several reasons for someone to run for public office. My journey set its own course, thanks to the nature of my previous occupation. As a certified public accountant, I would be asked to serve on nonprofit boards and invariably become the organization’s treasurer. So when I was asked to run for county treasurer,...
A quarter of a century ago, in conservative Orange County, two school bond measures were approved by voters, receiving more than two-thirds of the votes. This was something not seen in more than two decades. As the Orange County treasurer-tax collector at the time, many constituents were asking for my advice on such ballot measures,...
One of the fun components of reviewing annual comprehensive financial reports, which is a very time-consuming “hobby,” is when you see a trend that needs to be complimented. The ranking of Orange County’s 34 cities for the year ending June 30, 2023, was just released. When reviewing the rankings for the past seven years, there...
Of Orange County’s 34 cities in Southern California, the six with the strongest balance sheets maintained their positions in the annual fiscal rankings for the year ending June 30, 2023. However, the other 28 cities were a little more interesting. Overall, it was still a good year, with only one out of five seeing their...
As a Certified Public Accountant and Certified Financial Planner, one consistent piece of advice I would give to my clients was never to cosign on a loan. When doing so, you agree to be responsible for the debt should the original borrower miss a payment or stop paying altogether. It’s awkward. And I’ve seen sincere...
Newport-Mesa Unified School District (NMUSD) in Orange County, Calif., is considering issuing another voter-approved bond to pursue building improvements. The title of “Classroom Safety/Repair Measure” is being used in the initial phase of this exercise. And the Facilities Master Plan (FMP) is on the district’s website and invites visitors to take a prioritization survey. But...
The city of Compton wins the laggard award for Los Angeles County’s 88 cities in releasing its June 30, 2021, annual comprehensive financial report (ACFR). It was completed by its auditing firm on May 8 and presented to its city council on June 4 of this year. The customary completion date by the outside independent...
For the 12 months ending on June 30, 2022, the coronavirus lockdown by California Gov. Gavin Newsom was still in effect. His implementation of this lengthy and heavy-handed measure would be in place for another eight months. But, in March 2022, the Federal Reserve Board made the first of 11 interest rate hikes to slow...
The second fiscal year after the implementation of Gov. Gavin Newsom’s coronavirus lockdown for San Diego County’s 18 cities saw Del Mar bounce back up in fiscal rankings (see “City of San Diego Fell Behind $191 Million in First Year of Pandemic,” May 15, 2024). The fiscal year ending June 30, 2021, also saw the...
The California State Controller released the audit of California’s financial statements, performed by the State Auditor for the year ending June 30, 2022, on March 15. The annual comprehensive financial report should have been issued some 15 months sooner. Looking at the document, we are immediately informed on the first page of the Report Overview...
When it comes to the reporting of the accounting of our 50 states, two main concerns can be observed. The first is the delinquency rate of several states. For the fiscal year June 30, 2022, 20 states released their audited financial statements within six months. There are four states that deviate from the norm, with...
The state of California has 58 counties and 482 cities. To provide manageable fiscal rankings, I’ve divided the state into eight regions, closely following the districts established by Caltrans. The Bay Area, Caltrans District 4, has 101 cities. The rankings for 2020 are compared to those of 2019 in the graph below. For an explanation...
Having served on the California State Senate Budget and Fiscal Review Committee during my six years in Sacramento, I was recently challenged to take a closer look at Gov. Gavin Newsom’s proposed budget. I started with his Jan. 10, 2024, budget message to the members of the California State Legislature. I was not amused. It...
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