Posted by John Cox at 9:12 am on Jun 09, 2015 Comments Off on California’s Political Earthquake on Its Way
[Publisher’s Note: As part of an
ongoing effort to bring original, thoughtful commentary to you here
at the FlashReport, we are pleased to present this column from John
Cox.]
California is facing an uncertain future – and it’s not an
earthquake, despite a current blockbuster movie. There’s a water
crisis, an education system declared woeful by a state judge and
soaring costs on all levels – water, utilities, energy, housing and
taxes. These could all be eclipsed by the huge elephant in the room
– unfunded pensions and health care for state and local government
employees that could be $1 trillion or more.
What are our public officials doing? As was recently reported,
there are no fewer than a dozen proposals in the legislature to
increase taxes AND spending, despite the massive underfunding of
pensions and health care. The Governor crows about a California
‘comeback’ but he almost completely ignores the trillion dollar
bomb expected to hit over the next 20 years. This government
employee pensions and healthcare bomb only gets worse, as life
expectancies expand and investments underperform the rosy
scenarios… Read More