This piece discusses the financial troubles faced by Orange County due to poor investment decisions and oversight. After the 1994 bankruptcy, it emphasizes the importance of marking investments to market value for transparency. The author, John M.W. Moorlach, recounts his past campaign against the then-Treasurer-Tax Collector Bob Citron, highlighting concerns about his handling of investments.
The current situation reveals that a new leadership team, believing interest rates would decline, invested heavily in long-term bonds. Instead, interest rates rose, resulting in significant losses—around $50 million—as of April 2026. Moorlach warns that the county might have to sell these holdings at a loss, stressing that taxpayers will bear the consequences.
He advocates for returning investment authority to the elected Treasurer-Tax Collector, Shari Freidenrich, citing her successful track record. The text serves as both a cautionary tale and a call to action for local governance and financial responsibility.
