State, County, And
Local Governments Hide Trillions
CAFR Update
By Walter Burien <CEVI2000@aol.com>
6-7-99
To get some of the CAFR reports available for downloading go to
this Internet site: http://www.financenet.gov/state/cafr.htm
If your State or County is not listed, send an E-Mail to a
neighboring State saying that you have their State CAFR report, and you
would like to do a comparison study of your State's CAFR report, and
would they please E-Mail you back with the department, telephone number
and contact name in YOUR State + Counties + large Cities to get their
CAFR report. The States all share each others CAFR reports for
comparison..
The following example is for the state of Texas, but applies to all
States in varying degrees. Some more some less:
Get the Texas State 1997 CAFR - It lists under the "local
Government Investment Pool" 5.5 Trillion. States own investment totals
2.8 Trillion. Texas government composite totals 8.3 Trillion. ( that's
- $8,300,000,000,000.00 )
"The Texas CAFR states that the State of Texas has $8.3 trillion in
investments. If we arbitrarily assume at this point in time that $2.8
trillion is for retirement and pension plans, etc., that leaves $5.5
trillion in surpluses.
What does this mean? If Texas has a population of 20 million, the
$5.5 trillion means the State of Texas with all of its governments has
$275,000 in surpluses for every man, women and child in the State.
For a family of 4, the State of Texas local governments have $1.1
million of your money that it is not being used to run all of the
governments "Budgets" in the State of Texas.
Another way of looking at this is to say that if all the
governments in the State of Texas were required to apply the income,
say at 7.5%, first to the operating budgets of all the governments in
the State, estimated at $215 billion, and then the balance as a
dividend check to each man, women, and child in Texas, Texans would no
longer have to pay any taxes and each year each person could receive a
dividend check of $9,875 or $39,500 for a family of 4 from now on.
Do you know what this would do for the economy of Texas? It would
explode creating the greatest economic expansion in Texas history.
These types of surpluses are in every city, county and State in the
U.S. It is time for the people to start finding out about these
surupluses and start doing something about them."
California State CAFR 1997, lists total investment assets of about
3 trillion "BUT" in the notes it will direct you for the complete
accounting to the "Legal Basis Comprehensive Report" showing 12
trillion under management.
Just so we don't miss the most basic point here, composite
government has amassed in total liquid assets, 60 trillion dollars
plus. The total net worth of the private sector is 25 trillion. Get the
point......
There are 10,000 cell operations that make up the whole. The
principle of operation is: Through trickle down economics, just enough
revenue is released to the public to keep the chipmunk running on the
treadmill chasing the carrot, as they, the composite government boys,
tap off 80% of the energy from the treadmill, thus keeping the public
working at optimum efficiency. Why do you think Gorbachev went
democratic?
Composite Government funds, listed as institutional fund, managed
by listed institutional investment companys, own 71% of Xerox Corp.,
41% of AT&T, 57% of Motorola, etc. Get the point.....
Insurance company equity participation, (mandated federal law 1969,
enacted for full effect after a 10 years compliance period in 1979),
for 1/3 of the value of the insurance policy, to be on deposit and held
by the insurance industry as a major catastrophe fund New Jersey State
1998 CAFR is 34 Billion dollars invested with insurance company equity
participation, California is 1.8 trillion dollars, Federal is 4.6
trillion dollars. The revenue in the catastrophe fund, 86-90% is
provided by composite government investment funds. That's about 8
trillion dollars. Do you know what the annual interest income is on 8
trillion at 4 to 5%. Get the point......
Undisclosed tax through enactment of law on the insurance industry
for the creation of the fund, where they, composite government,
provided the revenue to meet the revenue requirements. Ever wonder why
auto insurance rates are so high and payment is enforce by armed force?
Well, lets see, Arizona, min coverage is $30,000 1/3 = $10,000, 5%
annual interest on $10,000 = $500. My insurance is $658 per year - $500
= $158 to the insurance company.. Get the point????
STOP LOOKING AT THE LEAFS ON THE BRANCHES OF THE TREES OF THE
FOREST... Look at THE FOREST... Composite totals show the clear and
unequivocal financial take over of the wealth of this country from the
people.
Composite government pension funds = 28 trillion dollars. The
entire private sector will never realize that amount. Get the point?
Bottom Line____ OPEN DISCLOSURE TO THE PUBLIC OF COMPOSITE TOTALS
First step: The CAFR has been hushed through cooperative
nondisclosure to the public. Immediate disclosure OF THE NAME of the
report to the public is paramount.
As of 1998 large sums of revenue, fiduciary and trust funds, are
not listed and are accounted for in other documentation noted in the
CAFR. Prior year reports 1997-1975 are imperative to be looked at when
following the money trail.
The NAME OF THE GAME is composite totals which shows the degree of
the financial takeover. Government has turned into a virus and the
public is the host for that virus. The problem is that the virus is now
substantially bigger than the host..
The Equivalent of the Comprehensive Annual Financial Report (CAFR)
for the composite totals of the majority of Federal Government agencies
is called the Federal Government Combined Financial Statement.
To download the US Federal Government Combined Financial Statements
for 1997, 96 & 95 go to this site: http://www.fms.treas.gov/cfs/index.html
Read the last page first. It shows what agencies are included in
the combined statement and those that are excluded. You will see the
ones excluded from the report as being the primary cash and investment
agencies. Are they worried that if they were included that the balance
sheet would show positive assets in the trillions ?? hmmm...
To see the Federal Regulation submitted in 1979 by GFOA requiring
local governments (City, County and States) not already having a CAFR
to prepare a CAFR report go to this Internet site: http://www.financenet.gov/data/welcome/statloc/prof/gfoa/policies/accounting.txt
Please get the word out today so that the public can see the forest
for the first time.
Thanks,
Walter J. Burien, Jr.
PS: The Initiative for the creation of the: Citizens Investment
Trust Account, which will be presented to the City of Prescott,
Arizona, will be sent out to you, when completed, hopefully on Thursday
6/10/99.
Walter Burien's videotape, "The Biggest Game In Town", can be
purchased for about $15.00. Some of the information on the Net, and the
order form, are as follows:
http://www.sightings.com/politics2/hidetrill.htm
Walter Burien articles. Order form for videotape
http://rarebird.net/goldbond/cafr001.htm
Email for Burien CAFR1@aol.com
Read an interview with Burien.
The Biggest Game in
Town
Walter J. Burien, Jr.
The Video "The Biggest Game In Town" program 1 & 2 is now
airing on public access in over 20 states and should be aired in all
states within two more months. It is also now playing in Canada and
Hawaii also.
Presidential candidate: Charles Collins, has stated to me that the
video, programs 1 & 2, will be put up through his web site http://www.Collins2000.org for
continuous stream feed viewing internationally within 10 days.
The tidal wave is growing, and the direction of the wave is
cresting for the elimination of all taxation in this country. It's
happening, be ready to apply the ultimate push..
Yours truly,
Walter J. Burien, Jr.
C. E. V. I.
-------------------------------
Comprehensive Annual Financial Reports
(CAFRs)
Report on CAFR Research by: Walter J.
Burien, Jr.
Introduction
Walter Burien Jr. worked as a Wall Street Commodity Trading Advisor
(CTA) for fifteen years, but now resides in Arizona. According to Mr.
Burien, every state, county and major metropolitan city is keeping two
sets of books. One set (the 'Budget') is commonly available and tracks
each governmental entity's casts and tax revenue. The Budget is the
financial record that's seen by the public and used by politicians to
justify new governmental services and higher taxes.
However, there is a second set of books (called the Comprehensive
Annual Financial Report, or CAFR) which is virtually unknown to the
public but contains the real record of total governmental income.
According to Mr. Burien, although the Budget gives an accurate account
of government costs, only the CAFR gives an accurate account of
government's income.
For example, while a particular state budget might report receiving
$20 billion in taxes (just barely enough to sustain its $20 billion in
costs) - the CAFR might reveal the state's real income is in the
neighborhood of $60 billion - three times as much as reported on the
budget. If these allegations are accurate, the particular state could
stop charging all the taxes we are familiar with and, not only survive
but, either double the amount of reported government services or give
every citizen a huge tax rebate.
The implications are mind-boggling. The CAFR's reveal that the
world is so different from what we are led to believe, so much more
corrupt than suspected, that we are left with three choices, either; 1)
government agrees to end the deception and stop overtaxing us, or 2)
the American people agree to accept their status as slaves, or 3) both
sides refuse to agree and precipitate a shooting revolution. The issue
is that big.
Are Mr. Burien's allegations correct? How could any governmental
entity dare to routinely overcharge its citizens by 200%, underreport
its income by 2/3rds, and knowingly press for higher taxes based on an
inaccurate budget? Worse, how could such a fraudulent system become
widespread among all states, counties, cities and the Federal
Government?
Those who have made efforts to verify Burien's research indicate
that the conclusions drawn by Burien are probably correct. For
instance: The State of Alaska and the city of Anchorage both use
Budget/CAFR accounting systems that conceal a 'breathtaking' difference
in reported revenue. Another researcher in Wyoming claims that a
comparison of his state's budget and CAFR also support Mr. Burien's
arguments. In every case, there are two sets of books and the income
reported on the budget is millions or billions of dollars less than is
reported on the CAFR.
These verifications of Burien's research and findings lend credence
to his allegations.
What follows is an amalgam of statements or implications raised by
Mr. Burien in various interviews.
Mr. Burien reports first discovering the CAFR report in New Jersey
in 1989, when he helped start and incorporated a New Jersey tax protest
group called "Hands Across New Jersey." While involved with that group,
Mr. Burien read in the state's Annual Budget that the total cost of all
public services was $17 billion and the "net available" (the money on
hand to pay all bills) was $24.6 billion. But then he asked the first
question the IRS asks in any audit: "What are the gross receipts?" He
added the figures from various state government sources and came up
with about $44 billion and began to wonder how the state could have $17
billion in costs, $24.6 billion in cash on hand, and $44 billion annual
income? The numbers didn't add up, so he began to dig deeper.
Because his father had been Personnel Manager for the State
Treasury for four years, Mr. Burien understood how to get around in the
various government departments. The state Director of the Budget was on
vacation, so Mr. Burien called one of his lowest level assistants and
said, "I'm working on a report for Richard [the vacationing Budget
Director] and I need all the figures on the autonomous agency accounts,
interest accounts, investment accounts." The assistant said, "Ohh, you
want the CAFR." This was the first time Burien had heard of the CAFR
but he said, "Yes" and the assistant mailed it to him.
The 1989 CAFR showed that New Jersey had liquid investment funds
(cash) of $188 billion of which; common stocks worth $70 billion, $10
billion in loans made by the state due from public and private
corporations, and $14 billion in insurance company equity
participation. The little state of New Jersey, which admitted to less
than $25 billion in annual income on its budget, reported $188 billion
in cash, stocks, loans and equity participation on its CAFR. According
to Mr. Burien, "On that day, I learned the definition of syndicated
organized crime." Keep in mind that most of the revenue and investments
from the 21 counties, hundreds of cities, municipalities, school
districts, state financial authorities, pension funds, and 69
enterprise authorities, all of which put out their own CAFR or Combined
Financial Statement are not inclusive with the state's revenue and
investments. Totals here when looking at composite New Jersey
government figures is well in excess of 1.8 Trillion dollars. Yep you
heard that right 1.8 trillion. Divide that figure by the population of
New Jersey to see the per capita share of the wealth.
So why are the taxes in New Jersey some of the highest in the
country? The answerer is; Power corrupts, absolute Power corrupts
absolutely. Mr. Burien keeps emphasizing to the public that they, the
public, left the VAULT door open, and those sharp little crackers said
thank you very much. The problem is that most (95%) of the public
responds with, "Vault, what vault". With this well entrenched attitude
of naivety by the public in place, those sharp little crackers now have
even stopped saying thank you very much as they plunder the wealth in
their unabated efforts towards the building of their own empires within
the corporate structure of Composite Government.
The scam worked something like this: Anything that was a cost or
expense for public services (the traditional side of the Annual Service
Budget, such as the Department of Transportation, health and welfare,
etc.) was reported on the Budget where public taxes primarily paid 100%
of the bill for those services. That was $17 billion. NOTE: The
examples shown are for New Jersey, but apply across the country in
varying degrees.
However, any governmental agency that was a profit center (the Port
Authority for New Jersey, the New Jersey Turnpike, and investment
accounts, etc.) that generated no-tax revenue was "restricted by
statute from being reported in and benefiting the Annual Budget. Why?
Because the state legislature passed laws to prevent reporting the
income from investment or venture profit centers on the Budget.
Instead, income from these profit centers was disclosed only on the
CAFR or other financial reports referenced in the notes of the CAFR.
But that disclosure was not immediately apparent. For example, when
Mr. Burien looked for New Jersey's 1989 "gross cash receipts" in the
CAFR, he found the figure buried on page 174, under the "Waste Water
Treatment Trust Fund." It showed the amount of the total cash receipts
(Cash Additions) for 1989 from all state agencies, departments and
sources was $86.799 billion. In other words, New Jersey State
Government from "all sources" was grossing $87 billion to provide $17
billion in public services as seen in the openly represented "Annual
Service Budget". New Jersey citizens were paying $5 for every $1 in
services they received, and the state was pocketing the other $4 as
"profit."
When breaking down the true revenue income, the most important
revelation was that only one third of the states income came from
taxes, fines and fees. Two thirds of state governments income came from
"Other Sources" with no direct tie to the publicly known budget. When
looking at the openly disclosed "Budget", which each year continued to
grow at a runaway pace, here ever expanding taxation primarily covered
the expenses.
The CAFR also reported the state owned $32 billion in common stocks
- but this figure was footnoted. The footnote revealed that the stocks
were valued according to their original purchase price, not the current
market value. In other words, if the state bought a stock in 1968 at
$1.25 a share and it's worth $300 a share now, they still report it on
the CAFR as worth $1.25 a share. Burien determined that the true market
value for the "$32 billion" in stocks reported on the New Jersey CAFR
was actually about $70 billion.
But Mr. Burien goes further - he claims that the dual system of
books is not unique to New Jersey, but also common among the over
54,000 local government corporate entities operating within all fifty
states. Moreover, he claims the dual accounting system used ten years
ago in New Jersey was created in 1946 through an organization by the
name of GFOA (Government Financial Officers Association) and is the
primary local government accounting structure being used today.
For example, "In 1987 Arizona's annual service budget reported $2.8
billion in revenues but the state's 1987 CAFR reported total cash
receipts of $3.1 billion, a mere $300 million difference."
"However, in 1997, Arizona reported an Annual Service Budget of
$5.5 billion while the State's CAFR (printed by the Auditor General's
Office) showed total gross cash receipts of $17 billion. That's a
difference of over $11 billion. In just ten years, Arizona had caught
up to New Jersey in that both states' annual budgets reported less than
one-third of the actual gross income seen in the states' CAFRs.
"CAFR and "Combined Financial Statement" reports indicate that the
composite totals for all government (Federal, state, county and city)
ownership of publicly traded stocks exceeds $32 TRILLION (53% of the
total ownership of all listed stocks from ALL exchanges), $8 TRILLION
in insurance company equity (should we be surprised by high priced
mandatory auto insurance or unaffordable health care?) and $5 TRILLION
in Bond Surety Escrow Accounts for future liability of existing or
potential debt.
Governments use Bond Surety Escrow Accounts to evade that pesky
little rule that government should not operate at a "profit." That is,
government should not impose more taxes than it actually uses to run
the government. By designating tax revenue that exceeds operating costs
as "Bond Surety Escrow" for future liability, government avoids calling
excess revenue a "profit" and is thereby enabled to continue to enrich
itself at public expense.
To illustrate the potential for abusing "future liability
payments," consider the New Jersey plan in the 1950s to build the New
Jersey State Turnpike and Garden State Parkway Authorities. The state
asked voters to approve a $7.5 billion bond to construct the turnpikes.
The state explained that these turnpikes would be operated as toll
roads by the bondholders until the $7.5 billion bond was paid off - but
the bondholders could not operate the toll roads at a profit. Once the
bonds were repaid, the turnpikes would revert back into the state's
Annual Budget as a normal cost/revenue item. The public voted Yes.
Over the following years, the state sometimes alleged that the toll
revenue from operating those turnpikes failed to cover their operating
expenses, and so additional bonds were passed to fund the turnpikes. As
a result, in 1990, the total bond liability still owed for the turnpike
had grown to $14.5 billion. But guess how much was in the 'Bond Surety
Escrow Accounts'? $38 Billion! Enough to repay the original $7.5
billion bonds almost four times!
How could that happen? Say the toll road made a $400 million profit
for the year and the scheduled payment on the $7.5 billion bond was
$100 million. The state made the $100 million payment but kept the
extra $300 million in a Bond Surety Escrow Account which generated
substantial annual dividend returns for 'future liability payments.'
Although they kept the $300 million, they did not declare it as an
asset but wrote it off as a line item payment. In other years, even
though they made a profit, they'd allege that they lost money and
therefore floated more billions in bonds. (Guess who pays?)
The bottom line is that New Jersey and other local government
entities are collecting hundreds of billions of virtually unreported
dollars from "Other" operations. The motivating factor is not public
welfare, but control of those billions.
Mr. Burien not only alleges that the dual accounting system
exemplified by CAFR is not only used by all fifty states, but also by
all counties, cities and the Federal Government itself. If Mr. Burien's
allegations are correct, they comprise the most damning indictment of
big government yet seen. In sum, Mr. Burien implies that our government
is in fact a criminal enterprise bent on oppressing Americans by
extorting several times as much tax revenue as it spends on public
services and using the majority of those extorted revenues to enrich,
empower and enlarge government at public expense.
Mr. Burien contends that the inner circle of the individuals
controlling the top wealth of this structure, have the attitude toward
the public of; Keep the Chipmunk (the public) running on the treadmill,
as through trickle down economics, just enough revenue is supplied to
keep the chipmunk running at optimum efficiency as the top inner circle
controlling parties tap off 80% of the energy produced by the
treadmill. The key words here are "Optimum Efficiency" and by the
definition of what the public has allowed to happen as they left the
vault door unintentionally open, the true final effect of forced labor
and subservience by unrestrained takeover.
According to Mr. Burien, although the public is absolutely ignorant
concerning CAFR, the primary cause for that ignorance is not the
politicians but the mainstream media. When Mr. Burien first discovered
the CAFR reports in New Jersey in 1989, he went on radio 101.5 FM in a
live 45 minute interview. Two days later, that radio station was
threatened with losing its license and was almost shut down. CAFR had
become another example of - "third rail journalism" - any reporter or
media outlet that touched the issue would be silenced or driven from
journalism. As a result, there's been a total mainstream media blackout
on disclosing CAFR reports. For over twenty five years the directors
and CEOs of the primary syndicated media organizations both print and
broadcast, were sent state CAFR reports each and every year, as they
maintained a blackout towards the simple mentioning of the report.
Mr. Burien reports the discovery of the fact that New Jersey State
Judges are vested in a personal retirement guarantee of $5,000,000.00,
per judge, after they serve as judges for one year. Federal district
court judges did not have a retirement or pension plan do to the fact
that they were appointed for life. Being appointed for life they
received their full paycheck and benefits for life. Do you need anyone
to spell it out for you? Would a New Jersey State or Federal District
Judge allow an attack on the squirreled away $Billions and jeopardize
his entry into $Millionaire$ status? The inner circle gets the gold!!
Later, Burien learned that the New Jersey official in charge of
discrediting his CAFR discoveries was a former reporter (Harvey Fisher)
who'd been appointed Assistant State Treasurer - even though he had no
former financial background. Burien investigated his background and
learned that as a reporter he made $35,000 a year. But as Assistant
State Treasurer he made $65,000 a year - plus a Carte Blanche expense
account of $125,000. !????????
Burien claims this was not an aberration: "I knew there was a state
data search department under the Department of Treasure Personnel
division which tied all agencies and departments together. I called
that department and asked for a data search on all key level
directorships and supervisory positions for all budgetary or autonomous
agencies, and they came up with some 3,400 names from several
administrations. Almost 1800 of these Directors were former editors or
reporters! It is a virtual certainty that many of these appointments
were payoffs for the journalists' previous "cooperation" in spinning or
silencing stories to suit government.
If you conduct a comparable search in other states, you may find a
similar symbiotic relationship between government, editors, and
reporters. The more money held and generated by an agency, the higher
the percentage will be. If so, the media's "liberal, pro-government
bias" may run much deeper than anyone has imagined, and the
'military-industrial complex" described by President Eisenhower in the
1950's may have been replaced by a "media-bureaucracy-banker complex"
in the 1990s.
Therefore, Mr. Burien recommends that once you analyze your state's
Budget and CAFR reports, you insist that your local news mainstream
media (TV, papers, radio) raise the "Public Awareness" by reporting the
difference between the composite "total of cash receipts from all
agencies, departments, investments, etc." and the "actual total
composite revenues held or controlled." Mr. Burien started with
national disclosure of the CAFR and the structure behind it on June 8th
1998. In 1999, GFOA and GASB (Government Accounting Standards Board)
changed the accounting requirements for local governments within the
Combined Financial Columns of the CAFR from; All revenue, income and
investments being shown, To; All revenue, income and investments being
shown that were necessary to meet obligations and liabilities of that
local government. This change in accounting is substantial. The good
point here for disclosure is that you can look at a pre 1999 CAFR
report, 1997-95-93, etc., and spot large drops in revenue from post
1999 reports in comparison with pre 1999 CAFR reports. With this being
done, you now know to ask and look for the accounting of those revenues
taken off the balance columns of the CAFR. Read the notes of the CAFR
carefully.
If your local media refuse to publicize your state's CAFR, they may
be cooperating with a criminal agreement which has effectively silenced
public disclosure of the CAFR reports for over forty years. However,
once Americans know how much money is out there, where it's coming from
and where it's going - the government's and the inner circle's game
will be over.
Any media that refuses to make immediate mention of the CAFR report
should be publicly and aggressively boycotted. Media exposure is the
jugular vein of the evil and corruption.
A video produced in December of 1999, by Mr. Burien, entitled: The
Biggest Game In Town, is available and is set up for airing on your
Public Access or local TV stations. Mr. Burien, in this video
introduces a program that could lead to the final elimination of
taxation in this country with a possible dividend return to the public
by and through the restructuring of the principle of operation of
government by public mandate in making the public the direct
beneficiary of the wealth. The information on the video is a must see
for every American.
If you would like a copy of the video tape: The Biggest Game In Town
It will be available on VHS (standard video) Part 1 & 2 plus
equals 2 hrs.
------PLEASE COPY AND SHARE THIS ORDER FORM WITH
OTHERS-------
COST: The VHS tape (1) production cost including shipping and
handling is $14
If you can pay more, $35 per tape, this will allow for VHS tapes to
be distributed to others across the country from your additional
contribution.
HOW TO ORDER: By mail send your request and payment to:
C. E. V. I.
P. O. Box 11444
Prescott, AZ 86304
By: Mail, copy, print and use the following form:
------------------------------------------
The Biggest Game In Town - Video Request
VHS TAPE - Number of tapes__________ X $14 =_____________
TYPED TRANSCRIPT OF THE ENTIRE TAPE = $5 ____________
ADDITIONAL CONTRIBUTION TENDERED ____________________
TOTAL___________
SHIPPING ADDRESS: ___________________________________
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Telephone No. ___________________________________
If requested for airing, where and when _________________________
______________________________________________________________
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TAPES CAN BE COPIED, DISTRIBUTED AND AIRED BY ANY PARTY ONLY AS A
COMPLETE VERSION OF PROGRAMS 1 & 2 ON THE TAPE - WJB
Upon receipt of payment you order will be sent 2 day Priority Mail.
------
Walter J. Burien, Jr.
P.O. Box 11444
Prescott, Arizona 86304
Tel: 520-445-3532
Email: CAFR1@aol.com
http://www.sightings.com/politics2/hidetrill.htm
Walter Burien articles. Order form for videotape
http://rarebird.net/goldbond/cafr001.htm
Email for Burien CAFR1@aol.com
Read an interview with Burien.