29 July 2011 0 Comments

Pennsylvania’s Debt and the “Surplus”: Half True, All False

Commonwealth Foundation: “Today, Pennsylvanians owe $127 billion in state and local government debt. This equates to more than $10,000 for every person, and more than $40,000 for the average family of four in the Commonwealth, an increase of more than $12,000 since 2002.”

  • There are billions in pension liabilities not reported on balance sheet. Off Balance Sheet Accounting is called Enron Accounting, Fannie Mae Accounting, Lehman Brothers Account. It is practice almost guaranteed to lead to fiscal disaster;
  • . Then there is a nearly $4 billion debt of unemployment compensation owed to the federal government;
  • and $800 million owed to the medical malpractice fund (MCARE Fund) which was inappropriately spent by Governor Rendell.

 

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