Hit by big losses, CalSTRS looks at pay policy

[Stephen Frank]

If the State and local governments do not radically control and cut back on sweet heart union agreements, government in California will financially collapse

"Actuaries say that if the loss is not spread over several years, a standard "smoothing" process, employer-employee payments that now total 18 percent of payroll would need an additional 13 percent of
pay."

Imagine a 13% increase in the payroll tax. This will collapse the economy overnight.

That is how bad the situation is--and it could happen in a matter of months. Total collapse.

Do you have the number for U-Haul handy?

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