Preventing a Repeat of the Orange County Crisis

By Paul McDonnell

A recurrence of the Orange County Bankruptcy can be prevented by a combination of local oversight and strong financial management.

Local communities have the ability and legal requirement to monitor the performance of their investments. I have put our monthly reports on our web site so any citizen can track our performance on a monthly basis. It was precisely the lack of oversight which permitted Orange County to get into trouble. Just as in other areas of government the public needs to pay attention.

There is no subsitute for professional experience in managing money. One of the reasons Mr. Citron and his team in Orange County got into trouble was their lack of education and experience. The people responsible for managing public funds should be no less competent than their counterparts in the private sector. Hiring a Treasurer with direct hands-on experience is a essential. We should not entrust our funds to a career bureaucrat.

Our funds in Riverside County are extremely safe. In fact we are one of just a few counties which carry a "AAA" rating. Our staff is comprised of experienced professionals and preservation of principal is at the core of our investment philosophy. I encourage interested citizens to learn more about our investments by visiting our web site (http://www.co.riverside.ca.us/depts/treasure).