California in the red by $127.2 billion, state auditors say

[BobaFett1]

http://www.washingtontimes.com/news/2013/apr/1/california-red-1272-billion-state-auditors-say/

[ChumpDumper]

lol April

[RandomGuy]

Updated: 06/11/2013 06:02:55 AM PDT

California budget deal reached by Gov. Jerry Brown, lawmakers

http://www.mercurynews.com/california-budget/ci_23431549/california-budget-deal-reached-by-gov-jerry-brown


SACRAMENTO -- Gov. Jerry Brown and California lawmakers on Monday reached a key agreement on K-12 education funding and other pivotal parts of the state's spending plan, which could set up one of the smoothest paths toward a budget in years.

Brown got his wish to keep intact most of the cuts made in previous years while dedicating most of the money from a newfound surplus to bolster public schools, with a particular emphasis on disadvantaged students. Democratic lawmakers, meanwhile, chipped away at restoring a few parts of the social safety net slashed during the recession.

Brown and lawmakers led by Senate President Pro Tem Darrell Steinberg and Assembly Speaker John Perez reached the deal on Monday afternoon,

Senate President Pro Tem Darrell Steinberg, D-Sacramento, after a budget meeting with Gov. Jerry Brown and Assembly Speaker John Perez, D-Los Angeles, in Sacramento, June 10, 2013. (Rich Pedroncelli / AP)five days before the full Senate and Assembly must approve the budget by a midnight Saturday deadline. A public announcement of the details is expected Tuesday.

The annual number-crunching debate no longer centers on whether the state's books are balanced but how much of a surplus should be spent. Unlike the last several years, the budget is now balanced -- largely because of cuts made in recent years, the $6 billion tax hike voters approved in November and the increased tax revenues that have come with the economic recovery.

Brown won perhaps the biggest battle -- which was over how much money will be available to spend. Lawmakers agreed to use Brown's $96.4 billion spending plan, $3.2 billion less than what the Democratic-controlled Legislature wanted.

Fail troll has failed.

[TeyshaBlue]

lol Sock Puppet

[Sportcamper]

Once again per Forbs Cali has pension liabilities in the 300 to 500 billion range…In spite of the huge tax revenue Cali is broke…All state & City pensions are IOU’s …Non funded…This is going to end very bad...

[RandomGuy]

Once again per Forbs Cali has pension liabilities in the 300 to 500 billion range…In spite of the huge tax revenue Cali is broke…All state & City pensions are IOU’s …Non funded…This is going to end very bad...

California is not alone in that boat.

I would note that cutting spending, and raising taxes, which is what Brown, a Democrat, just did to balance his budget, is the exact same solution to that problem.

Retirees will be forced to accept less than what they were promised initially and taxes will have to be raised to meet them in a comprimise.

Problem solved from the center, as they almost always are. Foolish Republicans who shit on moderates and make that comprimise impossible will find themselves increasingly marginalized, I hope.

[FuzzyLumpkins]

Once again per Forbs Cali has pension liabilities in the 300 to 500 billion range…In spite of the huge tax revenue Cali is broke…All state & City pensions are IOU’s …Non funded…This is going to end very bad...

If you choose to do your accounting like that then sure but as RG pointed out everywhere is like that.

Now who are the beneficiaries of all these pensions that have been unfunded for so long? What do you think is a fair method of paying for said benefits? Do you think those beneficiaries should get something for nothing?

[Sportcamper]

What do you think is a fair method of paying for said benefits?

How about Employee & Employer pay as you go like the private sector does? The money is invested in hard assets and not available until the employee reaches retirement age…These current IOU’s will one day be renegotiated when the tax base can no longer carry the burden of Government no funded pensions…

California financial situation will get worse as more Boomers retire & the tax base decreases….

[FuzzyLumpkins]

The pay as you go boat has already sailed now hasn't it? More and more of the beneficiaries are retiring as you say.

What I am asking about is the guys that for 40 years didn't pay as they went. You do understand that is the underlying issue right? What do you propose we do now that they retire off into the sunset?

[CosmicCowboy]

California is not alone in that boat.

I would note that cutting spending, and raising taxes, which is what Brown, a Democrat, just did to balance his budget, is the exact same solution to that problem.

Retirees will be forced to accept less than what they were promised initially and taxes will have to be raised to meet them in a comprimise.

Problem solved from the center, as they almost always are. Foolish Republicans who shit on moderates and make that comprimise impossible will find themselves increasingly marginalized, I hope.

Texas doesn't have EVEN CLOSE to that unfunded pension liability.

http://www.texastransparency.org/yourmoney/pdf/TexasItsYourMoney-Pensions.pdf

You ready to move yet, Jim Bob?

[Sportcamper]

Texas doesn't have EVEN CLOSE to that unfunded pension liability....You ready to move yet, Jim Bob?

Oh it is coming…:lol Will miss the warm So Cal Beaches though…

Found this interesting tidbit...

“By standard accounting methods, some state pension funds will run out of assets within as little as five years,” the Senate report said. “When the states with the worst pension systems come knocking at Washington’s door for a bailout, it will ultimately be taxpayers in more prudent states who will pay for the recklessness of the negligent states.”

[boutons_deux]

Texas doesn't have EVEN CLOSE to that unfunded pension liability.

http://www.texastransparency.org/yourmoney/pdf/TexasItsYourMoney-Pensions.pdf

You ready to move yet, Jim Bob?

RickyBobby is drawing a pension while still in active office. Is that available to everybody?

[CosmicCowboy]

It is surprisingly common in government service. I don't like it, but it happens.

[DMX7]

I thought Gov. Terminator was going to turn everything around? :lol

[FuzzyLumpkins]

Oh it is coming…:lol Will miss the warm So Cal Beaches though…

Found this interesting tidbit...

“By standard accounting methods, some state pension funds will run out of assets within as little as five years,” the Senate report said. “When the states with the worst pension systems come knocking at Washington’s door for a bailout, it will ultimately be taxpayers in more prudent states who will pay for the recklessness of the negligent states.”

What's the link to this or can you define 'standard accounting methods.'

[RandomGuy]

What do you think is a fair method of paying for said benefits?

How about Employee & Employer pay as you go like the private sector does? The money is invested in hard assets and not available until the employee reaches retirement age…These current IOU’s will one day be renegotiated when the tax base can no longer carry the burden of Government no funded pensions…

California financial situation will get worse as more Boomers retire & the tax base decreases….

Private sector doesn't pay as you go.

Employers have been raiding retirement funds to boost short-term quarterly results so much, that many funds are a shadow of their former selves. After they emptied the piggy banks, shockingly enough, they went into bankruptcy to force the people to whom they had promised benefits to accept the losses. The workers, in effect, subsidized the people who owned the stock.

Not exactly a shining model to copy.

I would point out that retirement systems almost always feature both employee and employer contributions already.

[RandomGuy]

Oh it is coming…:lol Will miss the warm So Cal Beaches though…

Found this interesting tidbit...

“By standard accounting methods, some state pension funds will run out of assets within as little as five years,” the Senate report said. “When the states with the worst pension systems come knocking at Washington’s door for a bailout, it will ultimately be taxpayers in more prudent states who will pay for the recklessness of the negligent states.”


The private sector has moved away from [defined benefit] plans, shifting to defined contribution (DC) plans to supplement workers' social security retirement.

Basically the private sector has shifted more of the burden to the taxpayers.

Again, the public is subsidizing the costs of retirement to private companies, i.e. holders of capital.

All this is great if you have enough income to save extra money, and let that capital work for you.

If not... you get stuck, poor.

[RandomGuy]

Texas doesn't have EVEN CLOSE to that unfunded pension liability.

http://www.texastransparency.org/yourmoney/pdf/TexasItsYourMoney-Pensions.pdf

You ready to move yet, Jim Bob?

Texas has fewer people and cities than California, in case you were not aware.

Calfiornia has about 47% more people, and an economy 47% larger.

Even that simple factor aside, I don't think you can make a meaningful comparison between the two, given the number of funds and their various specifics involved.

Read the report you linked, and tell me how many different funds comprise Texas' and what the overall conclusion of the report is.

If you like, I can and should, do a rundown of the Texas funds. A good weekend project, or maybe break it up over some lunch hours.