cawacko
Well-known member
We lead the country in a lot of things here in California. We have only the third most public pension debt so we have that going for us, which is nice. We're going to have to pay the piper on this eventually.
California has a staggering amount of public pension debt. Here's what that means for you
If all of California’s public pension debt were divided evenly by household, each house would need to pay $77,700, according to a new study by Stanford University.
The relatively high debt-to-household ratio makes the Golden State the third worst in the nation for total pension debt burden, behind Alaska and Illinois. That’s not to say that each Californian is responsible for paying $77,000, but the costs will fall on residents in different ways, as state and local governments figure out how to pay the debt, said Stanford policy professor Joe Nation.
The public sector can manage its debt by raising various kinds of taxes or cutting services. Governments can also hike contribution rates on public employees and employers — but those actions can also lead to greater cuts and taxes.
In sum, California's public governments have obligations for $991 billion for which there is no current plan to pay. The total involves the state's two major public pensions systems as well as pension plans for every local government agency.
“This is the biggest problem facing state and local governments,” said Nation, a pension reform advocate who is also a former state assemblyman. “No matter how you slice it, it’s an enormous number.”
Texas ranked 34th on the list, for which the highest ranking represented the worse collective debt burden. New York ranked 25th. Tennessee ranked the best at 50th, meaning that each household in the Volunteer State would pay just $17,661 if its pension debt were divided by household.
The study was released by the Stanford Institute for Economic Policy Research, a foundation-funded think tank.
http://www.bizjournals.com/sanfranc...taggering-amount-of-pension-debt.html?ana=twt
California has a staggering amount of public pension debt. Here's what that means for you
If all of California’s public pension debt were divided evenly by household, each house would need to pay $77,700, according to a new study by Stanford University.
The relatively high debt-to-household ratio makes the Golden State the third worst in the nation for total pension debt burden, behind Alaska and Illinois. That’s not to say that each Californian is responsible for paying $77,000, but the costs will fall on residents in different ways, as state and local governments figure out how to pay the debt, said Stanford policy professor Joe Nation.
The public sector can manage its debt by raising various kinds of taxes or cutting services. Governments can also hike contribution rates on public employees and employers — but those actions can also lead to greater cuts and taxes.
In sum, California's public governments have obligations for $991 billion for which there is no current plan to pay. The total involves the state's two major public pensions systems as well as pension plans for every local government agency.
“This is the biggest problem facing state and local governments,” said Nation, a pension reform advocate who is also a former state assemblyman. “No matter how you slice it, it’s an enormous number.”
Texas ranked 34th on the list, for which the highest ranking represented the worse collective debt burden. New York ranked 25th. Tennessee ranked the best at 50th, meaning that each household in the Volunteer State would pay just $17,661 if its pension debt were divided by household.
The study was released by the Stanford Institute for Economic Policy Research, a foundation-funded think tank.
http://www.bizjournals.com/sanfranc...taggering-amount-of-pension-debt.html?ana=twt
