Pointing to California’s “surplus” as a sign that the state is in great financial shape is a grave fallacy and is misleading of the true nature of the Golden State’s finances, argues Patrick Gleason in Forbes. The state’s surplus is meager in the face of its $1 trillion in unfunded pension liabilities, which after adjusting for non-pension benefits for state workers, is even larger. California’s inability to pay off its pension debt will only be further compounded by the increasing number of Californians fleeing the state. From 2011 to 2016, 243,000 Californians, with their total annual income amounting to $7.7 billion, fled the state.
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