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