Pension Bomb Fuse Just Got Shorter

Homeowners have enough to worry about in the current coronavirus crisis.

They face an April 10 deadline for the second installment of their annual property tax bill and there is no relief — yet — coming from either the governor’s office or the majority of county treasurer/tax collectors.

Many taxpayers have been furloughed or laid off and the chances are high that property values throughout America will take a hit — even in California.

How could things possibly get worse?

Here’s how. The coronavirus crisis and the damage it inflicts on the state’s economy has exposed the Potemkin village of the state’s actual financial condition.

For the last several years, we’ve been told that the “California Miracle” has left the state flush with a surplus of tens of billions of dollars. But that surplus will be quickly depleted because of the unexpected demands that the crisis brings.

Even more troubling is the impact on California’s debt balance, which is a mountain compared to the molehill of surplus revenue. And the bulk of that debt is in the form of unfunded pension obligations.

To read the entire column, please click here.

Comments

  1. The Unions have no guilt feelings about DEFINED benefits, regardless of available funds to pay for those benefits, as the responsibility to pay them will be on the backs of the younger generations that had no vote on their future financial responsibilities.

    It’s amazing that “entitlement” to those promised DEFINED benefits, will drive the so called “entitled” to put the costs of those entitlements onto their kids!

    State and local workers are promised generous DEFINED BENEFIT PENSION PROGRAMS that few private sector companies offer any longer because they are unaffordable. Making matters worse, thanks to complicit politicians, the state and local governments have failed to adequately fund these overly generous DEFINED benefit pensions. The huge unfunded pension liability debt crisis is the inevitable result that younger generations, unable to vote today, that will bear the costs.

    ully funding these pensions is unfair to current hard working taxpayers, so the “consensus” of the courts and current taxpayers is to defer the responsibilities for paying for these overly-generous “Defined retirement benefit” pension programs to younger generations, for them to pay higher taxes and work later into their lives to pay for the promises of previous generations, to subsidize older Americans.

    It’s frustrating and appalling that the “courts” are actually saying that future generations will continue to be legally responsible for DEFINED BENEFIT PENSION PROGRAMS established by previous generations! Are the courts really supporting taxation on younger generations without representation?

  2. Stan Sexton says

    Not only the taxpayers on the hook, but most water districts are on CALPERS. My Water District is 40 million in arrears on their CALPERS contributions. Our water rates are already obscene, and the Water District is already getting customer flak on high rates. They either have to inject that 40 million +in higher rates OR hope that Newsom will raise property taxes per the Constitution to bail out CALPERS. By bypassing Prop 13, he’ll have a fight on his hands.Sooner or later, Newsom and the Public Employee Unions will realize that they have a No-Win situation. Squeeze Time!

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