California Governor Jerry Brown Admits To $1.5 Billion "Math Error" In State Budget

Tyler Durden's picture

Budgeting can be difficult, particularly for expansive state budgets that require a ton of inputs to support 1,000s of line items each of which can result in massive variances depending on the development of various economic indicators like interest rates, commodity prices, etc. throughout the year.

That said, while forecasting variances are inevitable, we, as taxpayers, generally rely on our expensive budget office employees to at least present annual budgets that reflect sound mathematics and accounting principles.  Unfortunately, that seems to be too much to ask of the math-challenged administration of California Governor Jerry Brown which decided to double count certain cost savings and simply "forgot" to incorporate other expenses altogether.  Per the LA Times:

Budget staffers said there were, in fact, two mistakes:


-  A double counting of state savings from a program that coordinates health, behavioral and long-term care services with local government. That error understated expenses by $913 million.


A forgotten state government cost from two counties — San Mateo and Orange — enrolling in the coordinated program, which meant missed expenses of $573 million.

Jerr Brown


Embarrassingly, when asked about the "mistakes" that resulted in a $1.6 billion budget deficit, the Chief Deputy Director of Brown's Department of Finance could offer no other explanation than that the "math was wrong" while another spokesman admitted, “There’s no other way to describe this other than a straight up error in accounting, which we deeply regret."

Meanwhile, adding insult to injury, Brown's administration allegedly discovered their "accounting errors" several months ago but didn't disclose them to State Senators until last week.  Per Mercury News:

The administration discovered accounting mistakes last fall, but it did not notify lawmakers until the administration included adjustments to make up for the errors in Brown’s budget proposal last week.


The Department of Finance said it did not account for $487 million in rebates from drugmakers that the state must pay the federal government to reimburse Washington for its share of Medi-Cal drug costs.


The state also miscalculated costs for the Coordinated Care Initiative, an experimental program in seven counties to improve care for a group of high-needs patients eligible for both Medi-Cal and Medicare, the federally funded health plan for seniors and people with disabilities.


Officials double-counted some of the expected savings, leading to a budget hole of $913 million, and undercounted the costs in San Mateo and Orange counties by $573 million.


In his spending plan, Brown proposed eliminating the Coordinated Care Initiative because he said the program was not cost effective, angering counties that said the change would shift $550 million in costs to them.

Of course, the blatant attempt to cover up their "math error" rather than quickly admit the mistake last fall, led California State Senator John Moorlach to ask the obvious question of what other errors may be buried in the expansive budget, saying “It makes you wonder what else is not right. … When something like this happens, the trust factor gets eroded, and you lose confidence in what’s being provided to you."  But, no matter the size of the various other "math errors" that come to light, we're quite certain that California's liberal legislators in Sacramento stand ready, willing and able to implement whatever tax hikes may be necessary to address such issues.

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Raffie's picture


So is the $1.5 billion still there or in someones pocket?

peddling-fiction's picture

Whoever is responsible can work on his maff skills in the pen, dressed in orange.

The Merovingian's picture

Common core strikes again, eh Jerry?

What a fucktard!

Raffie's picture

He has 1 box to many of Crayons crammed up his nose.


Government needs you to pay taxes's picture

Ass rape those taxpayers AGAIN, Jerry!

The Saint's picture

Ha ha ha ha ha ha!!  Liberals.  You can't live with them and you can't kill them.


Bumpo's picture

Im sure if you welcome in another few million more illegal Mexicans, with free EBT, HEALCARE & SHELTER, your books will balance because of all the moral superiority you have.

ACP's picture

Time for the new DOJ to pile on the CA government and levy billions in fines and dozens of criminal convictions, putting CA even farther down the hole.

GGuy's picture
GGuy (not verified) ACP Jan 19, 2017 6:49 PM

Democrats hate math, and science, and 7th grade vocabulary words like GLOBAL AND WARMING......

eatthebanksters's picture

I live in Kalifornia and the libtards who run this place have no fucking idea of reality.  It's going to get real interesting with these budget problems and no Silicon Valley IPO in sight, how the sate is going to dig itself out of this hole.  It will be even more impacted when the Trump administration rightfully withholds federal money from 'sanctuary' status cities and the state.  If the libtard progrssive government raises the already highest state taxes in country you will see wealthy peeps and businesses flee the state.  When the illigals are gone the libtards will no longer have a voting majority as some of their middle of the road peers will cross the line and vote conservative...the old adage,"how do you turn a liberal into a conservative?  raise their taxes!"   Its true.  It may take 20 years to accomplish but maybe someday again, even in my life, we'll see proud Reagan Republicans as a mjority in the state again.

jcaz's picture

Yeah, that's what Bernie Madoff claimed, too-  "math error".......

PacOps's picture

Once upon a time back in the mid 60's we had a field engineer assigned to our IBM team in SEAsia. How this guy got thru the hiring selection and training processes on 360 mainframes was a mystery to us all. 

We had installed and maintained the largest world wide data communications network (in '66) prior to the invention of the Internet in '68 (UCLA & Stanford).

Long story short ... after multiple discussions with him and our team one FE simply stated he finally understood the guys problem ... that he apparently never learned and still did not know how to count.

We lost contact with him after '73 and he has yet to show up at our annual reunions.

Perhaps Brown hired him?


philipat's picture

You know, with a Billion here and a Billion there, pretty soon we'll be talking serious money?

de3de8's picture

No worries, I'm sure your safe haven's will ante up to cover.

spieslikeus's picture

Duh.....Al Gore invented the internet, dinchaknow? FIFY.

NoPension's picture

A) Lying Fucks, counting on the population's stupidity.

B) Fucking Idiots

C) Both

PT's picture

I'm very good at maths.  But I spent my entire twenties doing minimum wage work.  Even now I spend disproportionately large amounts of time unemployed.  So how the hell do the maths idiots get and keep their jobs??????
Oh, hang on, it's not just me, is it?  Other people I know who are good at maths also don't seem to do too well in the real world.

BTW, pocket calculators and computers are now old school.  They do all the heavy lifting.  You just have to check everything is entered properly.

Oh, hang on, that's right.  They are paid NOT to know.

"Just trust the nice banker man.  He will sort it all out for you."

PacOps's picture

Sheeeeit - slipsticks and Curta Calculators ( are "old school". Used the Curta on time and distance sports car rallies back in the 50's & early 60's. 

Remember when ... the first electronic 4 banger calculator came out? Around $400 bucks to add, subtract, multiply and divide. Hah!

I still have and use the HP 12c. 

The_Juggernaut's picture

I still have a Curta.  Amazing things.

JamesBond's picture

Interesting how the errors never seem to be on the surplus side...



neidermeyer's picture

I had the first 4 function calculator sold at Sears that went for under $200... what's crazy is that in aviation you still need to learn how to use a curcular slide rule ,, the E6B.. never needs batteries!

Steeley's picture

Yup, my first "calculator" was made by Pickett. No batteries, solar powered.  Still works to this day.

Don't think it would have made a 1,5000,000 error, at least while a light is on nearby.

shovelhead's picture

When I was in High School mid 60's we had a math teacher who was an early Peace Corp. volunteer in Asia somewhere and taught us how to use an abacus.

Pretty slick little tool that was surprisingly versatile if you knew how to use it.

A drop dead gorgeous hippy chick with enormous tits that had every guy in class sprung for 45 minutes every day. 5 star Playboy material with the sweetest personality you could ever meet.

She didn't last long because every woman and girl in school hated her at first sight.

flapdoodle's picture

Its very simple. To get a job as an Accountant they ask only one question, and there is only one answer:


Question: How much is 2 + 2 ??

Answer: How much do you want it to be ??



yogibear's picture

Keep Brown in Kalifornia. There are enough transplanted Kalifornian libtards in Colorado already. 

auricle's picture

Someone was smokin the herb. 

Steeley's picture

It's not their money, so why should they worry about it?

Chris Dakota's picture
Chris Dakota (not verified) GGuy Jan 20, 2017 5:12 AM

And if this faggot doesn't back down on Sanctuary State CA will loose much more in federal funding.

Keep the protests going!

BullyBearish's picture

Wow, 2 in one day: Moonbeam missed $1.6B and Mnuchinsky forgot about $100M in real estate holdings...the ghosts of Geitner...

xythras's picture
xythras (not verified) BullyBearish Jan 19, 2017 7:16 PM

Libtards are no very good at sciences. Rather at pussy studies and knitting pussy hats.

The governor should do some hats for the snowflakes going to protest the Inauguration

But this specific governor is special. There is a science he's expert in: cow farts science. 

any_mouse's picture

Do you also post links to ZH on the dailywesterner?

yogibear's picture

Brown is a libtard moron.

California deserves him. Keep him in California and away from the other states.

Mr. Pain's picture

These retards in california did this samething back in the mid eighties. They were off by over a billion dollars, gave the taxpayers a rebate befor they realized their mistake. 


Those accountants must have attended their schools out there.

Steeley's picture

I didn't give it back, either..

espirit's picture

Moonbeam could be the poster child for Stiglitz's proposal to eliminate currency.

Just forward a decimal point on everyone's account balance.

There, fixed it.

Payne's picture

Too bad we cannot have an math error on his paycheck to the negative.

Miffed Microbiologist's picture

He may just like that idea. They could help themselves to bank accounts to fill the gap. And it's gone, you've been California Corzined.


PacOps's picture

Being a CA resident thats why I never keep more than my next months bills in my account. Regularly taking out cash and stacking (Ag) or under my mattress - on the other side of the bed. ;-)

Bumpo's picture

By the way, ACP .. Is your avatar from Zardoz? I haven't seen that movie since I was 15 or something back in the 70's. That was one weird movie, but Im okay with weird sci-fi, even if Sean Connery is wearing thigh high boots, sporting full mutton chops, and doing it WAY past his prime.

Steeley's picture

Yep - the zardoz mask..  Get a bottle of absenthe and ask your squeeze if she wants to see Connery running around in a loin cloth (in '72 he wasn't past his prime, she'll tell you that..).. rent it from the library.. 3rd time through the metaphysics all falls into place. That's when you figure out that the answer to the mystery of the missing $1.6B is found in the book next to the one Zed pulls from the shelf.  Sooo close. Damn..  Maybe why he kills them all.

Normalcy Bias's picture

Liberals are very rarely good with unimportant matters like FACTS, REALITY, or MAFF.

It's how they feel  that counts...

Giant Meteor's picture

Probably would be helpful to just turn the chart upside down. Optics Gerry, optics ...

Antifaschistische's picture

Does $1B even matter anymore when you're so far gone....CA debt at $453 billion and counting.

espirit's picture

Blame it on second-hand smoke.

Reefer Madness!

Offthebeach's picture

English easy, maff be hard.

chiquita's picture

English easy, maff be hard.


Maybe not so much in a state where there are a minimum of 12 predominant languages spoken (and many others not so prevalent).