The San Jose Silicon Valley (SJSV) Chamber of Commerce 2011 Power Report featured State Controller John Chiang, who began his interactive comments by asking the audience a series of questions, and reminding them of two years ago, when he was forced to delay $4.8 billion tax refunds, CalGrants and the state portion of State Supplemental Income for senior and disabled Californians because he had just six dollars in cash in the state treasury compared to ten dollars worth of bills.

Today, the Controller says that now – two years later – the State is in a better cash position. However, the last time the State had a positive balance in the General Fund was July 12, 2007. Since that date, the State has relied on borrowing from external sources, such as Wall Street investors, as well as from special funds in the State. Those funds are being used to finance the State’s deficit, rather than smooth over the timing of revenues coming in. The Controller warned that we will again have cash difficulties if political paralysis threatens budget progress, if the State fails to get a balanced budget with sustainable solutions, and lawmakers and the governor fail to end the State’s over-reliance on borrowing.

Budget and pension reform is an integral part of restoring California’s financial stability, along with bolstering our education system so that we can compete globally. Chiang also discussed the importance of rebuilding our infrastructure. He recognized that while these are critical issues in California, these are not unique to California. Pat Dando, SJSV Chamber of Commerce President and CEO asked about the audits on several of the Redevelopment Agencies across the state and stressed how critical these funds are for California to remain competitive. Mr. Chiang agreed that the funds are important and said that the audits were focused on specific agencies to determine if they are in alignment with the laws that govern redevelopment.

The Controller finished his remarks by calling out a few of the members who were at the event, informing them of the unclaimed property owed to them, that his office oversees. Currently the program holds $6.1 billion in bank accounts utility deposits and other property that businesses have deemed abandoned.

For more information on the role of the State Controller or to check if you have unclaimed property visit www.sco.ca.gov.