Here’s an article that provides a bit more detail on California’s budget woes and the extraordinarily generous pensions that State has provided to many public employees. This kind of article demonstrates why the federal government should not bail out California or, for that matter, any other state. There is no reason why taxpayers in Ohio, or New Jersey, or North Dakota should be footing the bill for an insane public employee pension system that has produced 15,000 retirees who receive pension payments of more than $100,000 a year, who are permitted to retire at age 50 and receive pension payments at 90 percent of their last year’s salary, and who receive automatic cost of living adjustments. Given the absurd richness of the benefits, it is not surprising that California’s public employee pension system is underfunded in the amount of a stunning $63 billion.
California has set up a bad pension system, has refused to fund it, and should not now be rescued from the consequences of its bad decisions by taxpayers in other states. The federal government simply cannot and should not bankroll annual pension payments to state employees that are far larger than the annual retirement income to be received by the vast majority of Americans.