If you heard fireworks July 1, it might not have been people overanxious for Independence Day. They might have been celebrating the fact that the county made its final debt service payment to bondholders stemming from the 1994 bankruptcy. This marks an important milestone, and should serve as a reminder of the pitfalls of unaccountable government spending.

The bankruptcy was a painful chapter in the countys history, and recovering from it has presented many challenges, Chairwoman Michelle Steel, Second District Supervisor, said in a statement. Through meeting our financial challenges and fulfilling our bankruptcy debt obligation, the county is well positioned to continue our mission of making Orange County a safe, healthy and fulfilling place to live, work and play.

But while Orange County is unlikely to repeat its risky investment-fueled downfall, the county is not without its financial challenges. Unfunded pension liabilities remain a major cause for concern not just for the county, but across the state. According to the State Controllers Office, the unfunded liability of Californias pension plans surpassed $234 billion in 2015, the most recent year available.

Yet, many still seem to think government debt doesnt matter until it does. Pension-fueled insolvency in the cities of Stockton, Vallejo and, closer to home, in San Bernardino, prove that spending and debt have consequences.

State Sen. John Moorlach, R-Costa Mesa, sounded that warning again in a recent Bond Buyer interview.

There is something brewing in the state, Moorlach told the trade newspaper. If we didnt have Silicon Valley, we would be toast. We have job growth, but not in high-paying jobs. And we have cities scrambling right now trying to figure out how they are going to pay next years pension contribution.

Moorlach sounded the alarm in 1994, too. It proved to be a politically unpopular prognosis that lost him the election for Orange County treasurer-tax collector, and earned him the nickname Chicken Little. But by the next year, the countys municipal bond portfolio was in ruins and Moorlach had been appointed to fill the vacated position he had sought. His license plate still reads: SKY FELL. We didnt believe him then; maybe we should believe him now.

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Still learning lessons of 1994 bankruptcy - OCRegister