Addressing California’s Key Liabilities

Key Liabilities Total $340 Billion. A central tenet of public finance holds that expenses should be paid for during the year that they are incurred. In some cases, however, the state has taken actions that allowed it to provide services without at the same time paying for their full costs, creating a liability that must later be addressed. This report provides an overview of $340 billion of the state’s key liabilities—that is, debt, deferred payments, and other liabilities that will affect the state’s financial health in the future.