Posted on 01/24/2017 7:03:17 AM PST by george76
Public schools around California are bracing for a crisis driven by skyrocketing worker pension costs that are expected to force districts to divert billions of dollars from classrooms into retirement accounts, education officials said.
The depth of the funding gap became clear to district leaders when they returned from the holiday break: What they contribute to the California Public Employees’ Retirement System, known as CalPERS, will likely double within six years, according to state estimates.
CalPERS, a public pension fund with $300 billion in assets that is the country’s largest, manages retirement benefits for 1.8 million current and former city, state and school district employees, though it does not cover teachers, who fall under a different pension system.
School district officials say that unless the situation changes, they will have to make cuts elsewhere, possibly leading to larger class sizes, stagnant worker pay, fewer counselors and librarians, and less art and music in schools. Insolvency and state takeover are not out of the question for some districts.
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California’s pension problem isn’t new. For years, economists and policymakers have warned that the state’s pension systems won’t have enough money to fulfill promises to millions of current and retired workers. But next year, officials said, rising pension costs will eat up more than a third of proposed increases to the state education budget.
There is a predicted shortfall among all state retirement accounts of at least $230 billion based on what’s owed to current and future retirees
(Excerpt) Read more at sfchronicle.com ...
Trump’s fault!
No federal bailouts. The libs in Cal. brought this upon themselves, and they need to figure a way out. They can do it!
Pretty soon there will be no money for schools just pensions. Schools will close because all school employees will be retired.
The CalPERS cow has mastitis.
The Kersten Institute for Governance and Public Policy highlighted an updated pension study, released by the Stanford Institute for Economic Policy Research, which revealed some fairly startling realities about California's public pension underfunding levels. After averaging $77,700 per household in 2014, the amount of public pension underfunding for the state of California jumped to a staggering $92,748 per household in 2015.
But don't worry, we're sure pension managers can grow their way out of the problem...hedge fund returns have been stellar recently, right?
Stanford University’s pension tracker database pegs the market value of California’s total pension debt at $1 trillion or $93,000 per California household in 2015.
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Looking back to 2008, the underfunding levels of California's public pension have skyrocketed 157% on abysmal asset returns and growing liabilities resulting from lower discount rates.
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Perhaps this helps shed some light on why CalPERS is having such a difficult time with what should have been an easy decision to lower their long-term return expectations to 6% from 7.5% (see "CalPERS Weighs Pros/Cons Of Setting Reasonable Return Targets Vs. Maintaining Ponzi Scheme")...$93k per household just seems so much more "manageable" than $150k.
...
Of course, at this point the question isn't "if" these P onzi schemes will blow up.....but rather which one will go first? We have our money on Dallas Police and Fire... (Excerpt) Read more at zerohedge.com ...
LATINO'S "JUST HERE FOR A BETTER LIFE" SCAM Seems this tax-sucking latino worked for Cali's San Bernardino County Dept of Corrections. He said he worked 9 mos and got 3 mos time off to be with his children---one of whom was college age.
JJ asked him how he supported himself those 3 mos----he said he collected UI.
Seems the Cali Dept of Corrections perpetuates the acam---they calculately "laid him off" and rehired him 3 mos later.
He had been doing that for nine years. ....falsifying govt docvuments to get UI tax dollars.
AKA government fraud.
Now get this----when he was "laid off" to be with his children, he was actually traveling to be with his girlfriend---she was suing him for a $4000 loan---which was why they were in J/J's court.
These pathetic lib/Dumbocrats slay me.
ITEM-—Sap-Happy Cali liberals made dam sure they n-e-v-e-r run out of tax dollars to fund sanctuary cities, welfare and food stamps, education and healthcare, endless SS payments and EITC checks for these parasitic immigrants. All of them on our soil illegally....tax-guzzling creeps who never put a dime into the system.
ITEM-—Sap-happy Liberals made dam sure there are on-the-book govt mandates that force struggling taxpayers to foot the bill for illegal refugees here to go back and forth between America and their supposedly hostile homelands on the taxpayers’ dime.
Since all “educators” do everything “for the children”, why don’t they refuse to take all of their inflated pension and benefits? ...unless they don’t care about “the children”.
They should secede now!! Mexico will happily pay their bills.
Look for the union label.
I used to work for a PEU in CA and attended some meetings with CALPERS. They bragged that they don’t have to worry about business profits, because they can always force taxpayers to fund them, and if nothing else, the Federal government would bail them out. Disgusting!
They will somehow find funding for the ESL classes.
Let's see: $300,000,000,000/1,800,000 people = $167,000 per person. That is not much to generate a steady income flow to support someone. It's a start, but a rather poor one.
#youdontneednoeducation. #feetupgradesdown
Perhaps, but could it not just as easily be ascribed to The Rising Tide of Racism in America?
“School district officials say that unless the situation changes, they will have to make cuts elsewhere”
Simple, get rid of all the ESL classes.
“School district officials say that unless the situation changes, they will have to make cuts elsewhere”
Simple, get rid of all the ESL classes.
The lottery solved all of this, calif state politicians told us so. /s
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