Orange County’s financial crisis that became visible last month when the State of California sued the county for using $73.5 million of education money to balance its budget continues to swirl. Shortly thereafter, it was reported (here) the Auditor-Controller resigned in December after disclosing a $30,146,000 shortfall in “Reserves for Contingencies”, his Assistant turned down the [...]
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In another abrupt surprise, the highly respected Chairman of the Orange County’s Treasury Oversight Committee resigned on Monday, April 16, 2012. It seems he was being asked to read into the public record at a meeting of the Orange County Board of Supervisors, a letter written by county Treasurer, Shari Freidenrich stating that she had [...]
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Like the Titanic a hundred years ago that ignored warnings and ran full-speed into a massive iceberg, Orange County is taking enormous financial risks rather than addressing their gapping cash-flow deficit. To stay afloat the county resorted to making $518 million illiquid and unsecured interest rate wagers funded mostly from the payroll and savings account funds [...]
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