Posted on 03/31/2011 10:35:36 AM PDT by BenLurkin
The drop reported Thursday is enough to trigger an automatic increase in the amount the state must pay into the nation’s second largest public pension fund. Payments from California’s general fund will increase by 20 percent in the coming fiscal year, to $688 million.
(Excerpt) Read more at losangeles.cbslocal.com ...
Shame the teachers turned out so many that went on the dole. Had they produced entrepreneurs and business types there might be enough tax revenue to support their retirement.
“Money, which represents the prose of life, and which is hardly spoken of in parlors without an apology, is, in its effects and laws, as beautiful as roses.”
There’s no “stimulus” funds left for California Democrats to continue to hide the shortfall. For California taxpayers the day of reckoning has arrived, and they continue to elect Socialists. Beats the hell out of me as to why.
The Fed will buy 20 billion in CA bonds in a few months, and then again in a year’s time. No problem for Gov. Brown.
Let’s see if they continue that.
If they do, get a giant laser, cut them off, and push them into the Pacific.
So the general fund is 26B short.
Teachers pension fund is 56B short
And unemployment is 13.4B short.
All with safety net laws that we tax payers pick up the tab
“The unemployment insurance fund, insolvent since January 2009, relies on federal loans to pay jobless benefits.
The debt is expected to hit $13.4 billion by the end of this year unless state lawmakers and the governor agree to
raise payroll taxes, cut benefits or do some combination of both. An interest bill of $362 million is due in September.”
”By law, the state, which faces a $26-billion general budget deficit, must repay the federal loans to the EDD by November.”
EDD’s failure to repay its loans by then would trigger a $325-million federal tax hike next year on employers.
That payroll tax bite would rise incrementally to a maximum of about $6 billion if the loan goes unpaid and
the state misses interest payments over several years.
http://www.latimes.com/business/la-fi-edd-audit-20110325,0,1902644.story
Time for taxpayers to flee California before they get the bill. Oh, wait a minute - maybe Jerry Brown will try to charge it to his Obamacard so we all get to pay the tab.
All the More reason to get the Fed fully Audited and the results published.
The California Democrat motto - “GIMMEGIMMEGIMME!”
The California Teachers Association (CTA) has begun running ads whining about cuts.
Like many folks living in the once “Golden State,” it is no longer a consideration that I will move out of this nut house — it’s a reality! Taking my pension, savings and saying “screw” this over-taxing and totally mismanaged mess of a state! Jerry Brown could end up with his union thug buddies and all the illegals possible, and those two groups can pay the bills! (how about one of those little Rush Limbaugh “hee hee hee” laughs!)
Now *that* is one keenly ironic observation!
Thanks - in the 21st Century irony is all I have left ;)
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