California’s Unpaid Loans

Current CA Governor Jerry Brown has discovered that California’s government employees don’t pay back their loans. Thirteen million dollars and change are missing in action. It seems business trip advances and payday loans aren’t paid back to the state. State Controller, John Chiang, reports investigating the matter for years.

What’s new?
I have only one reaction to the many parts of this story: What makes this news in California?

Let me say, first, that I’m surprised the LA Times would print such a scathing story about one of their own. Jerry Brown isn’t the usual target for radical left-wing media in Los Angeles. Maybe LA is coming to its senses. But, no, I’m not that confident.

Small dent in big debt
First of all, $13.3 million is but a drop in the bucket of California debt. Years spent studying the issue is testimony to how slowly things happen in California government. If and when something does happen, it’s too little too late.

Cash advances
Advancing funds for business use stopped long ago in private industry. When an employee must use one’s own money up front for reimbursement later, spending is done wisely and conservatively. Giving employees money up front is another name for a short-term loan. In California, they don’t believe loans need to be paid back.

Payday advances
Yeah, free money while waiting for payday! Mmm mmm good and always a good deal when it’s not returned after payday! Wouldn’t it be nice if we all had such benevolent employers?

Busy work is bliss
But let’s look at it this way: California’s government is creating work for its bona fide employees. Take Chiang: He makes a noble effort to keep himself busy. He’s been studying the issue for years, even putting auditors to work chasing all the government agencies and departments making the unrepaid loans.

Then there was Schwarzenegger. He ignored the stories the bad audits revealed, saying the auditor’s report didn’t request a response. He should have won an Oscar for Best Bureaucratic Retort.

Still sunny, beautiful, and happy
So, here we have circular reasoning heaped upon malaise and blatant disregard for sound fiscal practice. California government just keeps cranking along in la la land, running on borrowed time and borrowed money until both run out. Money already has, but until the other 49 states in the Union refuse to support the sinking ship that California is, the Golden State will continue to rob the rest of America and drag it down with her.

Source:
http://www.latimes.com/news/local/la-me-unpaid-loans-20110421,0,4285091.story