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This year, CalPERS is "ONLY" going to add $87 million to the deficit.
But, over the next two years, it will add approximately $1.1 BILLION to the deficit. None of this includes the $525 billion in unfunded liabilities, enough to bankrupt the State by taking ALL the revenues to pay this debt.
"Only $87 million of the increase would come from the state general fund that has a $19 billion deficit, the nonpartisan Legislative Analyst estimated. The rest would come from special funds, such as transportation, and other sources.
We feel that those contribution increases are needed, the new CalPERS chief actuary, Alan Milligan, told the board. We are expecting contribution increases in the next two fiscal years as well, very significant contribution increases.
A written report (see agenda item 3e) said the board was told in December that state contributions to the California Public Employees Retirement System are expected to increase by an additional $1.1 billion in the two years following the new fiscal year beginning July 1"
Yet, Sacramento seems more interested in bike lanes, financing failed schools, allowing corrupt unions to control government, than in solving the pension crisis.
This is just the tip of the pension problem. As our deficit grows, and it will, the problem will get worse, since less money will be available to pay the pensions and keep current wasteful programs going and union leaders in Cadillac’s.
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But, over the next two years, it will add approximately $1.1 BILLION to the deficit. None of this includes the $525 billion in unfunded liabilities, enough to bankrupt the State by taking ALL the revenues to pay this debt.
"Only $87 million of the increase would come from the state general fund that has a $19 billion deficit, the nonpartisan Legislative Analyst estimated. The rest would come from special funds, such as transportation, and other sources.
We feel that those contribution increases are needed, the new CalPERS chief actuary, Alan Milligan, told the board. We are expecting contribution increases in the next two fiscal years as well, very significant contribution increases.
A written report (see agenda item 3e) said the board was told in December that state contributions to the California Public Employees Retirement System are expected to increase by an additional $1.1 billion in the two years following the new fiscal year beginning July 1"
Yet, Sacramento seems more interested in bike lanes, financing failed schools, allowing corrupt unions to control government, than in solving the pension crisis.
This is just the tip of the pension problem. As our deficit grows, and it will, the problem will get worse, since less money will be available to pay the pensions and keep current wasteful programs going and union leaders in Cadillac’s.
More...