Tweet
Here is something to think about. Government pensions in California are FIVE times larger than just ten years ago.
"Californians hear a lot about their state's current $20-some billion deficit. But that's nothing compared to what's ahead with pension problems.
A new Reason Foundation study shows that the costs of pensions for state employees are five times bigger than a decade ago, and will triple again in the decade ahead. Already the state's pension obligations are $500 billion more than it can pay, and the hole continues to deepen."
Who is going to pay for this? In fact, who CAN pay for this? Only by cutting 90% of all government expenditures, for schools, roads, public safety, etc. can we sustain the pensions. Anybody crazy enough to believe that will happen?
There is a partial answer. "Unlike some studies, however, this one comes with solutions. They are simple. Mostly they amount to this: Just bring future government pay and benefits into line with those in the private sector; close the defined-benefit pension plans for state employees and enroll new workers in 401(k)-type plans, and require that future pension giveaways be approved by voters (which of course will never happen)."
Since the unions oppose this, be prepared for your city and county, along with the
school district to be in bankruptcy court in the near future.
More...
"Californians hear a lot about their state's current $20-some billion deficit. But that's nothing compared to what's ahead with pension problems.
A new Reason Foundation study shows that the costs of pensions for state employees are five times bigger than a decade ago, and will triple again in the decade ahead. Already the state's pension obligations are $500 billion more than it can pay, and the hole continues to deepen."
Who is going to pay for this? In fact, who CAN pay for this? Only by cutting 90% of all government expenditures, for schools, roads, public safety, etc. can we sustain the pensions. Anybody crazy enough to believe that will happen?
There is a partial answer. "Unlike some studies, however, this one comes with solutions. They are simple. Mostly they amount to this: Just bring future government pay and benefits into line with those in the private sector; close the defined-benefit pension plans for state employees and enroll new workers in 401(k)-type plans, and require that future pension giveaways be approved by voters (which of course will never happen)."
Since the unions oppose this, be prepared for your city and county, along with the
school district to be in bankruptcy court in the near future.
More...