California is in bigger trouble than the MSM is willing to report. The state is filled to the ceiling with budgetary problems, but the biggest issue are these unfunded pensions.
My hat’s off to the California public workers unions for doing such an outstanding job delivering the votes of their members and campaign contributions in exchange for obscene retirement benefits. Unfortunately for the public workers, no one negotiated a way to pay for these things.
Mr. Feckner of Calpers is being disingenuous when he states that pension obligations are a small part of a municipalities budget. In most municipalities, pension obligations are the largest liabilities and are growing.
In San Jose, taxpayers were given the choice of either raising taxes to cover retiree benefits or cutting the benefits. Guess which one they chose?
The dominoes began to fall with Vallejo, and soon more municipalities will be facing bankruptcy and tax and spend choices.