UnThreaded | Threaded | Whole Thread (22) | Ignore Thread Prev | Next
Author: 2828 Big funky green star, 20000 posts Top Recommended Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 757408  
Subject: Re: California vs Texas Date: 2/13/2013 7:41 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 4
After multi-billion dollar shortfalls in recent years, the state's budget has finally straightened out. California expects to take in $2.4 billion more in revenue than it will spend this fiscal year, which ends June 30. After paying off a shortfall from last year and setting aside funds for upcoming obligations, it's on track to end the year with a $36 million surplus...
----------------------------------------------------------
Heh, heh, talk about predictions built on sand. At least you won't be asking for taxpayers to bail out your pension obligations, you guys are good now:

Across the country, state pension funds are dangerously underfunded. Recent calculations have put the total level of states’ unfunded pension debt at more than $2.5 trillion. That's more than one-sixth of the entire U.S. economy and more than all taxes paid to the federal government last year.

Now, many states are starting to chirp that there’s no way to dig out of their massive pension debts. Unfortunately, the past few years have shown us exactly what happens when large institutions face big challenges. When these institutions are deemed too big to fail, the federal government swoops in to bail them out. And there’s already movement afoot for the next big bailout – state pension systems.

Of course, a federal bailout of state pension debt would be disastrous. It would reward reckless states – such as California and Illinois – at the expense of states that have managed their finances responsibly.

That’s why we launched NoPensionBailout.com last year. We joined forces with former Sen. Jim DeMint, R-S.C., the U.S. Congress Joint Economic Committee, lawmakers from fiscally responsible states and national pension experts to stop the idea of a potential bailout before it gained much traction.

We worked with lawmakers here in Illinois to pass a resolution telling the federal government “no thanks” to the potential offer of a bailout. It looks like other states could be following suit.

Last week, California Assemblywoman Shannon Grove, R- Bakersfield, introduced her own No Pension Bailout resolution. If a federal bailout occurred, California would receive a cool $61 billion bailout financed by hardworking taxpayers in states such as Tennessee, Nebraska and North Dakota. That's nearly $5,000 per California household that would get shifted to taxpayers in more responsible states.

As long as a bailout is on the table, state and local governments will continue to delay the structural spending reforms that are so critical to their long-term fiscal health. Grove’s resolution would send a clear signal to the federal government that California is serious about getting its fiscal house in order.

There’s no denying the fact that state pension funds are in deep trouble. But big challenges need big solutions. Going to Washington, D.C., with a hand out doesn’t fix the crisis. It merely forces taxpayers in other states to delay the day of reckoning in states such as Illinois and California.

--------------------------------------------------------
Pony up and quit whining about wanting to get bailed out.
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (22) | Ignore Thread Prev | Next

Announcements

Foolanthropy 2014!
By working with young, first-time moms, Nurse-Family Partnership is able to truly change lives – for generations to come.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Macro Economics

Looking at Currency Ratios
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement