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Point Of View: Pension Reform (Part III)
California government retiree pension and benefit programs are over $350 billion in the red.
The practical effect of this red ink is that these retirement programs are short the billions of dollarsin assets needed to generate enough income to pay for them. As a result, the California taxpayersupported general fund has to make up the difference.
That income shortfall, according to think tank California Common Sense, is roughly calculated at$10 billion each year -- and rising.
California could do plenty with an extra $10 billion:
- Fix deteriorating roads and freeways, as well as build new ones.
- Unclog the crowded court system.
- Provide the money needed to make UC tuition increases unnecessary.
I'd like to hear your Point of View. Send me an email at [email protected].
If government benefit and pension debt continue to rise at the present rate, in ten years the statecould have to make some very hard choices such as raise taxes in the amount of the shortfall ofabout $18 billion or make deep cuts in basic state functions from the prison system to highereducation.
In twenty years, the choices will be even starker because the shortage will rise to a possible $29billion.
Of course, Governor Brown, you will have been out of office by the time all this happens.
Still, I am sure you do not want to be remembered as the governor who saw a financial disastercoming -- but did nothing about it.
Dealing with government worker pension and benefit debt is far more important than your currentobsession with high speed rail and the twin tunnels water project.
Change your priorities.
Make pension and retiree benefit reform your number one goal.
Make sure by legislative change or the initiative process that these programs are in line with whatthe state can actually afford now, in order to prevent huge financial problems later.
It will not be easy, but you can do it. Now is the time to take action.
Thanks for listening.
RELATED | Pension Reform (Part I)
RELATED | Pension Reform (Part II)
What do you think? We want to hear from you about this P.O.V. segment. Share your thoughts in thecomments section below or email me directly at [email protected].
Kevin T. Hale,
Vice President and General Manager
KTTV-TV, FOX 11 News
The views expressed are not necessarily those of the station or its employees.
http://www.myfoxla.com/story/27875777/point-of-view-pension-reform-part-iii
