By: Chriss W. Street
Like the Titanic a hundred years ago that ignored warnings and ran full-speed into a massive iceberg, Orange County is taking enormous financially risks rather than addressing their gaping cash-flow deficit. The county quietly entered into $518 million of illiquid and unsecured interest rate wagers, mostly financed from
the payroll and savings accounts of local schools and other government agencies. With spending rising as revenue is falling and financial officers exiting as liquidity is drying up; the danger of hitting another iceberg is becoming extreme. John Moorlach, Chairman of the Board of Supervisors, warned last year: “The County of Orange, which went bankrupt in 1994, is a bankruptcy candidate again.” He should know as Chairman, he is steering the ship. Continue reading