As we predicted, pensions eating up Prop. 30 education funds

calwatchdog.com/ ^ | 04/29/2013 | John Seiler

[massmike]

As Bill Clinton might put it, it’s in the math.

In the lead up to the November 6 election last fall, CalWatchDog.com ran several articles on Proposition 30 and pensions. We warned that the $7 billion tax increase would go not to schools, as advertised by Gov. Jerry Brown and others in TV ads, but to teacher pensions and other spending. I’ll quote some below.

The news now is that this is exactly what is happening. David Crane, a Democrat who was a budget adviser to Republican Gov. Arnold Schwarzenegger, has the facts in a Bloomberg article:

“Most Californians would be surprised to learn that 100 percent of education’s share of the tax increase proposed by Governor Jerry Brown will go to pensions instead of classrooms. But that would be no surprise to longtime observers of the California State Teachers’ Retirement System, which administers teacher pensions.

“Here’s why: After retirement, teachers are unconditionally guaranteed lifetime pensions by their school districts. Everything works out fine if Calstrs, as the retirement system is known, earns the investment returns it forecasts and from which upfront contributions are derived.

“But if they fall short, school districts must make up the difference. Because of compounding, the failure to earn forecasted earnings translates into huge deficiencies down the road.

“Unfortunately, “down the road” is where school districts are now.

[Blood of Tyrants]

So much for “schools first”.

[Mastador1]

This Californian is not surprised, having lived through Moonbeams first tour of destruction I knew what to expect from Geraldine! The Browns have a history of sucking at the teat of the state while at the same time doing their best to destroy it! And now with the demoncrats firmly in control the state is becoming one big mexoghetto!

[cherry]

this really angers me to no end...why should I care, other than basic fairness?....

well, the answer is these people with these highly inflated obscene pensions don't stay in Cali....they sell their box like houses for tons, and take that money and their fat pensions to states like mine with no state income tax, buy up all the lake properties and vacations sites, and live like kings and queens in OUR environment that is used to more sensible wages....

[exDemMom]

You forgot that a large number of them will also vote for the exact same kind of idiot that put California into the hole, thereby destroying everything they found attractive about your state. Then they will move on and destroy another state.

I’m CA born, but I see exactly what caused the problems.

[Lancey Howard]

“Most Californians would be surprised to learn that 100 percent of education’s share of the tax increase proposed by Governor Jerry Brown will go to pensions instead of classrooms.

LOL, I'm (yawn) shocked.