Gov. Schwarzenegger commissioned a Stanford university study to examine the costs of the California’s public sector pension plans. The results are not pretty:
[California Foundation for Fiscal Responsibility President Marcia] Fritz said the $535 billion shortfall estimated by the Stanford report means every household in the state is on the hook for about $36,000.
“That’s how much they owe to government workers for their retirement benefits,” Fritz said.
“It’s not like they will have to send a check to pay for it. But they will see it in higher classroom sizes, roads that aren’t repaired, parks that are closed, fewer policemen, far fewer firefighters and government offices that are probably going to be closed even more than we are seeing today.”
Representatives from CalPERS and the California State Teachers’ Retirement System (CalSTRS) did not return calls for comment.
Jon Coupal, president of the Howard Jarvis Taxpayers Association, said he isn’t surprised by Stanford’s estimate.
“This is the ticking time bomb that fiscal conservatives have been identifying for a decade now,” Coupal said. “As soon as (former Gov.) Gray Davis granted those enhanced pension benefits, we’ve been like the Cassandra who warns everybody, but whose words are not heeded.
“And still, even right now, the Legislature is returning from its Easter break and they should change the rules by statute today. But they won’t because there are too many powerful special interests invested in the status quo.”
“That’s how much they owe to government workers for their retirement benefits,” Fritz said.
“It’s not like they will have to send a check to pay for it. But they will see it in higher classroom sizes, roads that aren’t repaired, parks that are closed, fewer policemen, far fewer firefighters and government offices that are probably going to be closed even more than we are seeing today.”
Representatives from CalPERS and the California State Teachers’ Retirement System (CalSTRS) did not return calls for comment.
Jon Coupal, president of the Howard Jarvis Taxpayers Association, said he isn’t surprised by Stanford’s estimate.
“This is the ticking time bomb that fiscal conservatives have been identifying for a decade now,” Coupal said. “As soon as (former Gov.) Gray Davis granted those enhanced pension benefits, we’ve been like the Cassandra who warns everybody, but whose words are not heeded.
“And still, even right now, the Legislature is returning from its Easter break and they should change the rules by statute today. But they won’t because there are too many powerful special interests invested in the status quo.”
To further put this in perspective, $535 billion is more than the gross domestic product of either Saudi Arabia, Sweden, Switzerland or Poland. The state budget’s general fund in California is $85 billion.
