Just when the rabid liberals are telling you how wonderful things are in the State of California, that the debt crisis is over, the money is flowing, people are back to work and all is just dandy… we get news like this:
Reuters- New credit evaluation standards for public pension liabilities proposed by Moody’s Investors Service would swell unfunded liabilities for California’s state and local public pension plans to $328.6 billion from $128.3 billion, according to a report released on Monday.
At the higher level, the unfunded pension liabilities would come to $8,600 per resident of the most populous U.S. state, the report by the California Public Policy Center said.
Under Moody’s new standards, California’s state and local public pensions would only be 64 percent funded, compared with a previous estimate of 82 percent, the center said in its report, which is based on data from the state controller’s office. Current.
The San Jose Mercury News recently ran this article, ”
SACRAMENTO — Gov. Jerry Brown’s image as a responsible, penny-pinching steward of California’s finances has been cemented in recent weeks because of his renewed call to pay off California’s “wall of debt.
That’s a term Brown coined when he took office to describe the tens of billions of dollars California owed to public schools and special funds whose coffers were raided to help balance budgets in the past.
But look behind that $24.9 billion wall and you’ll see a $330 billion skyline of other liabilities threatening the state’s financial health. It includes $80 billion needed to cover teachers’ pensions and $64 billion to pay for state workers’ health care in retirement — two particularly troublesome liabilities because the state isn’t even making the minimum payments on them.
As a result — similar to the debt of a homeowner who fails to make regular mortgage payments — California’s liabilities keep growing. For example, the money needed to fully fund the California State Teachers’ Retirement System balloons by $22 million a day, or about $8 billion a year, financial analysts estimate.
“This is an enormous financial problem that no one is willing to stand up and take care of,” said Joe Nation, a public policy professor at Stanford University.
The governor acknowledged California’s unfunded liability burden Wednesday in his State of the State address, calling it “enormous and ever-growing.” In his proposed budget, he specifically calls for negotiations to resolve the teacher pension issue. But he includes no money for the upcoming fiscal year to pay down that liability.
“We can’t make a snap judgment on this,” said H.D. Palmer, spokesman for the state Department of Finance. “The prudent approach is coming up with a long-term plan that’s bought into by all stakeholders, and that will take time.”
Those stakeholders include the Legislature, school districts, CalSTRS and the teachers, whose unions Brown is expected to rely on for campaign donations and community outreach when, as is expected, he runs for reelection this fall.
For more on this story click here.
P.S. by Jack
The Governor and the State legislature has been less than forthcoming on this massive unfunded liability and far worse they have taken the most inadequate of measures to insure California’s future solvency. Instead, these clowns have side stepped the hard issues, choosing to focus on taking credit for tiny improvement when and where they can, ostensibly to help improve their abysmal poll numbers. The republicans on the other hand have failed to rally any support among the voters. By this I mean, they have no champion, and without leadership they’re failing to deliver a meaningful message to the portion of the public that has not entirely gone over to the democrats.
It’s incredibly frustrating to see this lack of leadership and blowing a great opportunity to do the right thing at just the right time. I fully believe republicans for the first time in decades could have significant support from major media sources, like the prestigious San Jose Mercury News, The Sacramento Bee or the Los Angeles Times and many others if they had a plan. The media finally gets it and I think they are ready and willing to carry their plan to the people to save California from the unions and gross overspending.
The left leaning media knows the State of California is in financial crisis and it’s entirely the fault of those who have been running this state for the last 20 plus years. And, if you don’t know who that is, maybe you should consider removing your name from the voter rolls.
Jack you are being entirely too kind when you say, “The Governor and the State legislature has been less than forthcoming on this massive unfunded liability…”.
A more truthful statement is that they continue to be downright deceitful.
I hope your evaluation of the California media is accurate. They have such an important roll to play. I have to wonder how many of them are as deeply indoctrinated as so many Americans are today, however. Do they even know how to report an alternative plan or would their natural inclination to derision overwhelm?
I guess we’ll have to wait to see if Republicans manage to step up their game before we will ever know…the alternative isn’t too pleasant to think about.
Rush just said, “You know the media has not done much to report on the misery that people are experiencing.” and he’s absolutely right. Instead they spin how much better it is to work part time so we have more leisure…or how much better it is to have healthcare so the arts can be pursued. all I can think of is the constant drumbeat of homeless stories we heard in the 80’s when the Reagan booming economy was sparked by an explosion of small business entrepreneurs after the malaise of the carter years.
People in California are suffering today…jobs would ease that suffering…a fracking boom would ease that pain and help with the massive debt problem and money for schools problem…and that ain’t news?
I gotta great idea.
Right about now with all these pension problems lets give state workers a big raise!
Oh yea, Brownie and the Demoncrats just did that.
Sorry.
Don’t worry, Tina.
I’m sure Brownie will come out with another tax increase proposal in his next term.
(Of course he will have another term. He will win in a landslide.)
Anyhoo, I’m sure he will even come right up here to Chico and deliver it personally to Jack just like he did last time. (Heck, I even saw Jack on the telly the last time Brownie came to Chico to lie to the voters…er…I mean to discuss the necessity of tax increases…but anyway, Jack was a star…a star I tells ya…)
Maybe Brown will even use the sandwich example again…but this time it will be sh** sandwich.
And just remember, like our local government workers, nothing is too good for state workers. (Regarding city of Chico employees I think the News and Review made that abundantly clear last week.
You peoples ready for Hillary??? Well are you, Mr. Decimal?
These people are….
http://www.lewrockwell.com/lrc-blog/too-good/
“yose” Tea Party ready to force Hilliary? We’s people do not want another corporatist rep or dem but youse people want it
This us against them crap only worked in Germany 1930’s but we see Putin running the old playbook…Hum wonder what fred Koch taught the Boyz…..Really?
Epic Fail!
Interesting. A right leaning news organizations goes to a Democrat event to interview people about their thoughts regarding Hillary Clinton, her tenure as Secretary of State, and her possible candidacy for president in the party. Thoughtful questions are asked politely and the people are given plenty of time to respond freely! And that is the sort of journalism deemed “propaganda” by the hapless Dewey! Strange observation within an even stranger belief system.
There are a lot of good citizens in this country who are patiently and tirelessly working to improve and restore our nation and not just in government but also in every aspect of American life. Many of them are a part of news organizations. Many of them are stepping up to expose corruption. Many of them came together loosely in their own communities as the TEA PARTY and they came from all political persuasions, races, and classes. Many people have left affiliation with the two parties…others stay and fight within (at least in the Republican Party) to restore morality, bring reform to the federal government, bring down debt, and restore a sense of service in Congress. Citizens today are more committed and involved than they have been for decades.
My problem with the Democrat Party is that it shows no signs of moving in the direction of Constitutional principles or freedom, rather it has doubled down on socialist principles and the big federal welfare models that were designed on foreign shores.
The us against them “crap” is a construct of the Democrat playbook. The turmoil now present in society is a result of people being fed up with it. Dewey you’re criticizing and condemning the wrong people. I suspect you are too full of yourself to notice.