Posted on 07/18/2011 8:53:56 AM PDT by SmithL
When Gov. Jerry Brown and Republicans failed to reach agreement on closing the state budget deficit, they also failed to resolve several budget-related issues – most prominently what, if anything, should be done to rein in public employees' pensions.
Pension costs are not yet a huge component of the state budget because the vast majority of its funds are given to others to spend.
But they are huge in local governments, especially cities, which spend most of their money on personnel – especially high-wage police officers and firefighters – and face rapidly escalating pension costs.
Republicans wanted to scale back pension costs as part of a budget deal. In the absence of a deal, it's unclear what will happen.
Brown and other Democrats say they want pension reform, but they have close political ties to unions that resist change. Most likely, Democratic pension changes will be largely superficial,
(Excerpt) Read more at sacbee.com ...
Nope, Jerry failed to do that with his Democratically controlled State House. He definitely wanted the Republicans to fall on their own swords and reneg on higher taxes.
This is what Obama and the Progressive/Liberal press are trying to do.
It is the Press that wants the Unpopular taxes. No wonder their readership and advertising dollars are plunging.
It's probably better that they don't make the needed changes..it will just accelerate the problem, and bring it to a head. There is NO way that the state, counties, and municipalities can "grow" their way out of the financial crises. It will take one or two bankruptices..probably counties, change of government, and a resturcturing of past and future debt obligations..bonds and pensiosn and medical benefits...to turn it around..
Once one or two go through the process..others will see the advantages, more will do it, and ultimately the state has to go along as well..There is NO point changing benefits for future retirees without significantly cutting those to present retirees,and that can only be done via a bankruptcy..
The state of CA can neither go bankrupt, nor reduce pension benefits to current ritirees - so, they have a structural problem.
As a life-long resident of California I you mirror my thoughts exactly. In a perverse way, it slowed down the demise of the state, electing Arnold the Awful as governor. He was largely ineffective, but he did hold things up somewhat. We, who love this wonderful state need to do everything in our power to hasten the final collapse. Actually, to save their own miserable asses, the RATS in Sacramento are actually speeding up the collapse of the cities and counties. While they “appropriate” monies that should be going to local entities to shore up their financial mess. the are also “pushing off” functions that the state has heretofore managed, like prisons. They want to “transfer” large portions of the state prison population to the counties, but they are not going to supply any funding. Stuff like this will make the collapse happen faster and that’s what we need.
To MoonBeam...what’s (or who’s) in your wallet?
Best friend the Unions ever had. Keep voting Dems you Kookifornians. As I write this at John Wayne Airport there are chicas from south of the border yacking it up in spanglish. Well its Mexifornia after all.
That's one of the reasons that I somewhat question the whole push for a BBA. I'm not against it..but everytime I hear a Pubby say that "49 of the 50 states constitutionally are required to balance their budget each year"..I snicker..
California, Mass, NY, CT, MI..and others..have used smoke and mirrors for years to supposedly "balance" their budgets. Has it worked...NOT...will the feds be any different...depends who's in control...
Assume the BBA passes..10 years hence, we now have a Dem president, and Dem control of Congress..they start spending like drunken sailors..violating the BBA terms...they can get the CBO to prove anything in their defense..so the GOP minority sues in the Supreme Court?..that the budget is unconstitutional? Even if you have 9 Scalias on the COurt..they won't touch it....
Rather than a BBA, I prfer to see a GDP Limit on Federal Receipts, and spending.
Say, 25%. If the Fed collects 25% of GDP in any one year, tax holiday for the balance of the year.
If they spend 25%, full stop.
Oh, and no spending OR TAX collections in any period when a budget is not extant.
By fed collections, I meant all income, all sources, including bond sales.
My point is..the only time you wold likely see such an amendment being violated would be if the Dems controlled everything..and then the BBA ( however it's constitutued) would be worthless.
Rememebr the Obamacare debate..the CBO was forced to say that it would "save" a TRILLION, because it's forced to use the insane assumptions given to them by the Dems..
True. I don’t know how to fix that. Even with my plan, Congress could simply claim that GDP is on path to triple in any given year - just like they claim that there is no inflation.
That’s the point..crooks will always cook the books..however, the BBA will get the public focused on it...and as I said earlier..once one, or more states, go belly up...and remember, the Dems in Cal are just now starting to realize that for at least the next 6 years, if not more, the GOP will control one, if not both, houses of Congress..there is NO bailout possible..that was always their big hope..look, the stimulus bill postponed the day of reckoning for about 2 years..they thought they could just do it again..
All state, county, city, government employees who are currently retired, need to have their pensions dramatically reduced, and this needs to happen fast.
I'm talking 45 percent reductions or more.
Agree!
Bring on the government collapse, at ALL levels.
All state, county, city, government employees who are currently retired, need to have their pensions dramatically reduced, and this needs to happen fast.
ANY new and current government employees in this state, regardless of position, or what city or county kingdom they are employed by, need to have their salaries and retirement pensions dramatically reduced.
This needs to happen soon!
Not really Fairy Browns, Fag supporters will “cough” up the Extra Dough!
Forgot the \s
The headline another BS government threat...No sale.
This is a good thing for those in the private sector.
It will only be jarring to the bloated overpaid city, county and state government employees.
Long over due.
There are 49 states with underfunded pension systems. NY is not one of them. NY state has the only overfunded pension system in the US.
And BTW, congrats on buying the Brooklyn Bridge last week. Trust you got a good deal..
We know what to do about current employees..older retirement age..require more years of service...pay in more themselves..eliminate OT from pension calculation..use last 10 years of wages for the average base salary..and cap benefits at 50% of average base salary..
With current retirees...eliminate COLA..reduce benefits by 15% initially, then 2% a year more for next 10 years..that's reasonable...people, as they age, spend less..
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