Bad news for California's bottom line...
An annual financial report issued by State Auditor Elaine Howle and the Bureau of State Audits found that California has a negative net worth of $127.2 (b) billion.
The report, which covers the fiscal year ending June 30, 2012, says the state's negative status increased that year, largely because it spent more than it received in revenue.
During the 2011-12 fiscal year, the state's general fund spent $1.7 billion more than it received in revenues and wound up with an accumulated deficit of just under $23 billion from several years of red ink.
Last November, voters passed an increase in sales and income taxes that Gov. Jerry Brown says will balance the state's operating budget and allow the debt to be decreased.