Controller Chiang blames deficit on real estate, debt service

Real estate woes and debt service are complicating California's economy and budget, the state controller told Democrats at the Plumas Lake Golf & Country Club during the annual Jefferson Day Dinner.

"It's like the interest on your credit card," John Chiang said of debt incurred by the state, which he said also faces a sluggish real estate market that isn't following the pattern of past recoveries from recessions.

"Real estate is usually the first one out and rebounds very well," he told about 100 people Wednesday night. Chiang also cited his family's economic success over time when asked at the Yuba-Sutter Democratic Club $50-per-person dinner about what can be done to help this region — described as poor and needing jobs.

"You grow into this," John Chiang said. "You can change communities."

He spoke of how his parents came to the United States from Taiwan in the 1950s and his father received a doctorate in chemical engineering.

"We have to get discipline," said Chiang, who noted the success of his brother, a multi-millionaire.

Chiang, 48, who has a law degree from Georgetown University, recalled his family's emphasis on education — including his mother advising him to tell his friends they could visit on Saturday.

"I will cook," Chiang recalled her saying, "and you guys are going to study."

His comments came after Butte County resident Armida Rosalez said the children of residents in this region have to go to Sacramento or Los Angles for jobs.

"We want something here," Rosalez said. "We want jobs — places for people to go to work.

"That's what we need," she said.

Chaing, described as the chief fiscal officer of California on the government agency's website, also spoke about Assemblyman Dan Logue's trip to Texas and the lawmaker's comments about job growth there.

Chiang said higher land and labor costs are among key reasons why California loses jobs in such industries as textiles.

He took questions throughout his talk and touched on a range of topics that 100,000 people a year in China receive masters or PhD.'s in science and technology. The United States has about 10,000 such graduates annually, he said.

"America educates the world," he added. "Because we still have the best educational system."

"We train them," Chiang said of students. "But we won't let them stay in this country."

The state controller called for a policy change allowing more people to remain, especially those with doctorates in science and technology.