Posted on 05/05/2010 7:54:29 AM PDT by SmithL
As the fiscal travails of California's state and local governments grow more acute, hitherto sacrosanct – or ignored – governmental sectors have found themselves under intensifying scrutiny.
An obvious example is the array of state and local government pension funds.
Those funds have been losing money in stocks, property and other investments, reducing their actuarial soundness and demanding higher payments from public budgets that are already leaking red ink. A recent Stanford University study, for instance, said that three big state pension funds may be a half-trillion dollars underwater.
The mind-boggling pension numbers, in turn, have ignited much media interest, an intense political debate over pension costs, concerns about retiree health care and fitful campaigns to throttle back obligations.
Another corner of government facing a critical eye is "redevelopment," the decades-old local government program that uses tax subsidies, bonds, land seizure and other tools to repackage property deemed as "blighted" and underwrite new construction.
Local governments, cities mostly, have issued many billions of dollars in bonds and skim about $5.5 billion a year off the property tax stream in redevelopment zones, supposedly to be used for civic improvements and affordable housing.
(Excerpt) Read more at sacbee.com ...
Some Democrats have a plan to “fix” that by government nationalizing 401K plans.
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What became of Arnold’s plan to reduce the state workforce by 5 pct, cut salaries by 5 pct and require state workers to pay another 5 pct of their (remaining) pay into their own pension plans?
Seems reasonable under the circumstances?
They also don't have the ability to raise taxes without the GOP.
Stand-off which will result in complete insolvency...possible Federal Receivership...and welfare checks that arrive in mail boxes, but won't cash.
It will be a very, very hot summer once the budget cracks in June.
State revenues are DOWN 30% from the overly optimistic projections that "balanced" the 2009-2010 budget.
The State of CA will go from $118bil during peak times, to about $75bil (best case) in 2010-2011. It MAY be as low as $65bil.
Great wailing and knashing of teeth will be heard this summer.
I wouldn't want to live in LA when this happens.
The bastions of DemoLiberal “intentions”, have finally about run out of Other Peoples Money..There’s no more money left to bribe the poor with, line their own pockets with, give payola to their stooges with...Soon it’s gonna be ‘Starving Time’ in all these places where long term DemoLiberal “governance” has held it’s corrupt sway.
Note how these Dems will want to flle to orther areas and start their DemoPervert wayts *there*, and ruin *those* places as well, just like they did in the North east. Because it’s soon to be ‘Starving Time’ *there* too!
Do you have a link to something on that statement?
Republicans sound alarm over Dem plans to sieze 401k’s
http://www.humanevents.com/article.php?id=36823
Its Arizona’s fault.
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