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The State of California has a $30 billion deficit, on top of a $42 billion deficit, for a total of over $70 billion. Payroll taxes have to go up at least $17 billion to pay for the $17 billion deficit in the unemployment insurance fund. The pension system has over $200 billion in unfunded liabilities, the health care system $24 billion in unfunded liabilities, the teachers pension plan, which has FIRST call on State funds, has $24 billion in unfunded liabilities. The State is giving out IOU's that banks will not touch.
Credit agencies see this, the growing unemployment, the $186 billion start up cost of AB 32--and that is just for one portion--and the credit agencies have given California the lowest rating in the nation.
Now, CalPers is wasting very limited dollars on a lawsuit they can not win. When a State gives out IOU's, and banks will not take them, the credit rating is WELL deserved.
This is a political stunt by incompetents trying to pretend California is fiscally sound. Everyone involved in the decision to sue needs to be fired---they have the judgement of a high school sophomore.
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Credit agencies see this, the growing unemployment, the $186 billion start up cost of AB 32--and that is just for one portion--and the credit agencies have given California the lowest rating in the nation.
Now, CalPers is wasting very limited dollars on a lawsuit they can not win. When a State gives out IOU's, and banks will not take them, the credit rating is WELL deserved.
This is a political stunt by incompetents trying to pretend California is fiscally sound. Everyone involved in the decision to sue needs to be fired---they have the judgement of a high school sophomore.
More...