Posted on 05/11/2020 1:44:11 PM PDT by WLusvardi
Budget crisis could have been avoided if Gov. Newsom had pursued a triage virus health policy instead of marital law and business shutdowns
‘In 1999, most government pension plans were 100% funded. With a 50% increase in liabilities, they instantly became two-thirds funded. And, for the last 20 years they are still two-thirds funded!’ – Sen. John Moorlach
State Senator John Moorlach (R-Costa Mesa) knows a lot about municipal budgeting. While campaigning for Orange County Tax Collector-Treasurer in 1994, he accurately predicted the largest municipal bond loss and bankruptcy in history. Moorlach recently wrote in the Bond Buyer: “Put California Pensions on a Ventilator”, alluding to the use of mechanical ventilators to assist patients with life-threatening coronavirus to breathe.
Moorlach is skeptical that budget reductions, issuing pension bonds that double the true pension costs to taxpayers, huge spikes in sales taxes, increased commercial property taxes by a split-roll property tax or more ballot initiatives will prevent eventual Chapter 9 municipal bankruptcies.
he State Legislative Analyst’s Office, however, forecasts a more modest deficit of $18 to $31 billion through 2022. California has $16 billion in reserves. Thus, it is conceivable California could absorb its losses with reserves and modest budget reductions. But this will do nothing to alleviate the coming shock wave of underfunded pension systems. State and federal elected representatives are seeking a federal bailout for these self-caused budget reductions including its pension systems.
(Excerpt) Read more at californiaglobe.com ...
The Democrats have made promises to a lot of states concerning public pensions and other welfare programs, such as health care for illegal aliens, to retain power in those states. They are hopelessly now in debt. The COVID-19 crisis was a godsend to them as they are now getting Queen Nancy to write a bailout ticket for them.
I wanna DayVorce....
They think a retirement fund is for retirees.
A retirement fund is there for Democrat politicians to loot and to buy votes with.
The institution of marital law (rather than martial law) is hugh and series.
NY wont have that problem. Thanks to Cuomos quick thinking, he purposely murdered most of the old pensioners.
This is not surprising in the least. I regularly run into guys who are living out their days on the beach in Mexico surfing every day, with plenty of cash, and when I ask them what they do. “Oh, I am a retired firefighter from California.”
Free medical insurance for life and at generous retirement pay. But California is not alone. Every state has allowed their fire and police unions to extract unsustainable retirement benefit packages. This will be the next financial crisis.
Why haven't they:
* Pursued a Corp. style deleavering fro theses long term liabilities
* Why are they still doing this ESD or whatever the bleep it is called portfolios which have a 100 basis points lower performance aka a full 1% lower than conservative pension managers. So if they are earning 7.5%, California is only getting 6.5%.
31 billion? That is around the numbers of Ford before Mulally came aboard & borrowed that much for the rebound they had. The problem is, California doesn't have product.
* Declare Bankruptcy & get it over with.
2/3 funded.
Easy, give them 2/3 pensions.
Headed to Burger King?
That’s what I said, too...
Winning response. Yoo r gene yuss.
Cash them out into 401k’s like the rest of us.
The so-called public servants and their unions have been economically gang raping the tax payers for years..To the point where the public servants become the over paid masters.
Posting your own stupid and grossly overstated article? What do you think FR is your own publishing house?
JFK screwed the nation when he lifted the restrictions on Public Sector Union.
No collective bargaining if the tax payer pays your wages. Just look at teachers unions, over paid, incompetent, agenda driven and impossible to fire. Thanks a lot JFK.
Public safety officers in Commiefornia can retire after 30 years service at 90% of their former salary, with hefty cost of living annual increases and paid healthcare. Add in the Social Security payout and many are retired with a six figure income, with no pesky Obamacare to cut into that golden parachute.
Such irony: Those with the worst COVID are colored blue,sanctuary,and locked down with enormous pension defects. These are also the states that push mail in voting.
About 9 or 10 years ago I came across a document that listed the earnings of San Fransisco employees, city and county. The highest paid was a nurse at a county hospital, with a not too shabby total of $345K. There was an endless list of cops and firefighters pulling in $220K. I don’t remember the exact numbers, but I believe that at least 30 or 40% of all city employees were at the six figure mark.
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