STATE: State Park Investigation Proves Fraud

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UPDATE: 8/20/2012. Today's Tribune has a front page article updating the story of how our Calif. State Parks had millions hidden in secret funds, while trying to fool us into raising taxes to keep our State Parks open. A recent investigation involving more than 30 interviews found that:

1) Our State Parks Dept. routinely searched in June every year for ways to spend money to keep from losing it; all the while, park closures threatened, and maintenance on the 278 state parks was not done;

2) Parks Administrator Manuel Lopez illegally tapped the park funds to pay for cash buyouts for himself and dozens of other park employees (Lopez subsequently resigned or was fired) to the tune of $271,000;

3) The Parks Employees created a variety of forged documents, including those showing they had entered into contracts to spend money on computers and such, when no such agreements existed;

4) "Burning Down" budgets in June each year (i.e., spending just to get rid of money in the budget) is widespread THROUGHOUT Calif. state government departments, NOT JUST parks (hope nobody is surprised by this);

5) Parks Director Ruth Coleman resigned in July, claiming she didn't know of this Parks Slush Fund, though investigation testimony revealed that she did indeed know.

Here's what I think:

1) Gov. Brown must have known about this, yet continued on his crusade to use Calif. Park Closings to convince Californian's to vote this November to raise taxes;

2) I'm betting that Coleman and Lopez were able to resign and retain their full retirement benefits, when they should have been fired for their fraudulent role in this whole situation;
3) California voters voted for a democrat controlled legislature, a democratic governor, and spending that is out of control - well, we got what we wanted. Still want to give these buffoons more of your money through Calif. tax increases? November is coming...

Get more updates on the story in the Los Angeles Times or the Sacramento Bee.

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UPDATE: 8/2/2012. Source: The Tribune, SanLuisObispo.com. It was reported that California Parks Department deliberately underreported $53.8 million in 2 accounts. State finance officials were alerted to this error fifteen (15!!!) years ago, as far back as 1997, said Jacob Roper, a spokesman for the State Controller's Office. This raises questions about basic state government account policies and procedures, or lack thereof. The $53.8 million surplus dates back at least 12 years, even though the state was threatening to shut down 70 state parks due to budget constraints. State Parks Director Ruth Coleman stepped down (I assume that means she QUIT), and her Deputy Chief, Michael Harris was let go (I assume that means FIRED). Director Coleman claims she was unaware of the secret hidden fund, thus leaving us to wonder why she quit?

To the many folks who stepped into the void with their own private money and effort to keep our beloved State Parks open, this is both a huge slap in the face, and a reason to not trust what our beloved State Government tell us. Things like this are really discouraging to folks who care about things like this. Our local SLO economy relies heavily on our state parks attracting tourists to our hotels and restaurants. SLO County has numerous state parks, though I could not put my finger on the number.

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UPDATE 7/30/2012: Who knows what to believe. Apparently, it is not clear whether the $54,000,000 even exists or not [Update 8/2/2012 - apparently the money DOES exist]. Due to lax accounting standards, the $54 mil may just be accounting errors. It has been show repeatedly that the government, in all its forms and at all its levels, cannot pass a standard accounting audit. They are not subject to audits, nor the discipline and scrutiny that goes with it. Sigh. California has a few billion in these "slush" funds, but doesn't really know how much. In the upcoming weeks, they hope to account for some of this money and then move on once it is out of the news. A few billion here, a few billion there, and pretty soon you're talking about a lot of money.

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ORIGINAL POST July 24, 2012: Again, another area where I am loath to dive in, but I must. From the beginning, Calif. Gov. Brown's threat to close 70 state parks that cost the state $22,000,000 per year unless we vote to increase taxes stunk up our state. Knowing that these 70 state parks generate far more than $22 mil in local and state tax revenues, I've been smelling a rat with this one for a long time. I will not be manipulated into voting for a tax increase - I hope you won't, either.

Then comes the lovely headline today on July 24, 2012 that the State Park Fund had $54,000,000 in unused but SECRET funds at their disposal. In the previous year, non-profit groups in Calif. have been scrambling to build organizations and donations to take over these 70 parks so they don't close. Heads have already rolled, with longtime State Park Director Ruth Coleman resigning, and Chief Deputy Michael Harris resigning. Though my view has been one of tricking the state voters into raising taxes, Nick Franco, superintendant of the San Luis Obispo Coast District of State Parks somehow sees it as an effort to energize non-profits into accepting the idea of privatizing the parks. Given our state liberal bent, privatizing ANYTHING, much less a state park, would seem to be the furthest from our state legislators minds. I will keep my eyes and ears open for ANY evidence that what Mr. Franco suspects holds any water. See the July 24, 2012 Tribune Article "Local Parks Supporters Feel Betrayed by Money Scandal". Silicon Valley Mercury News also had this to say about the issue.

There is some noise about the Sacramento Bee (who broke the story) has gotten it wrong, and that the $54,000,000, while State Park funds, cannot be used to keep them open. If that's so, then why have heads rolled?