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The tipping point has been reached. At some time in the future, government will either raise taxes or dramatically cut services to pay guaranteed pensions.
"On Thursday, pension consultant Girard Miller told California's Little Hoover Commission that state and local governments have $325 billion in unfunded pension liabilities, which he said amounts to $22,000 for every working adult in the Golden State.
"In California we had the Internet bubble, we had the housing bubble, and I see in the very near future the public pension bubble," Gov. Schwarzenegger said this week. Confronting the pension crisis, he said, should be the state's No. 1 policy priority."
Like most in Miller under estimates the unfunded liability of pensions. Stanford just finished an exhaustive study showing the actual number is $525 billion. Either way, it is unsustainable.
This is part of the reason productive folks are leaving California--they do not want to be stuck with the bill.
More...
"On Thursday, pension consultant Girard Miller told California's Little Hoover Commission that state and local governments have $325 billion in unfunded pension liabilities, which he said amounts to $22,000 for every working adult in the Golden State.
"In California we had the Internet bubble, we had the housing bubble, and I see in the very near future the public pension bubble," Gov. Schwarzenegger said this week. Confronting the pension crisis, he said, should be the state's No. 1 policy priority."
Like most in Miller under estimates the unfunded liability of pensions. Stanford just finished an exhaustive study showing the actual number is $525 billion. Either way, it is unsustainable.
This is part of the reason productive folks are leaving California--they do not want to be stuck with the bill.
More...