California Spending Binge Will Cause Economic Disaster — Soon
Steve Frank reports: “The finances of California make Enron look good these days. At least someone is going to jail for the corruption and lies of Enron…in California the folks responsible keep getting re-elected.”
Today Dan Walters wrote this in his column: “Last week, the Legislature’s budget office - virtually the only source of unbiased data about the state’s fiscal condition - warned that providing health care to retired state employees and their dependents now costs $1 billion a year, but the state faces an unfunded health care liability in the $40 billion-$70 billion range and would have to boost its health care spending to $6 billion a year to cover those costs.” This means, if real accounting was being used, the proposed budget this year is not $6 billion in deficit, it is at least $11 billion in deficit. A corporation, not noting that much deficit would have its CFO indicted and the New York Stock Exchange suspend trading in the stock.
Note that was just for the unfunded health care–they did not give the jumbo numbers for the unfunded pension plans of the state (The Teachers pension plan, today, is over $24 billion in unfunded liabilities–to grow to over $200 billion in 20 years!)
I should note that the “official” numbers on the unfunded liabilities do not have to be released. A new law to do so goes into effect NEXT year. Wait till you see the headlines on those numbers!
At the same time we are waiting for a report on “global warming” that will add a minimum of $7.9 billion to the costs of doing business in California. Of course businesses will not do this, it may be cheaper for them to leave, and for others never to come here.
On the June ballot Rob Reiner has another tax increase, for a “good cause”, pre-school for children (which would also end private pre-schools and in effect, mandate that those working at the government pre-schools join a corrupt union (corrupt–forcing people to pay for the radical political agenda of the Left)
. . .
California needs real economic/budgetary reform. without it, in five years we will have massive tax increases along with massive job losses….a downward death spiral. Why? Because our leaders today continue to use tax dollars to buy votes. it is time to confess the problem and stop giving excuses. (Emphasis ours)
Do you believe our budget process is getting better or worse? Please give other examples of spending out of control, it is time for real people to speak up and demand answers and actions–not more spending.