The Final Minority Report

Because Even Minorities Oppose Liberalism & Statism

Pension costs can ruin cities and states

Indeed.

California has exerted a weird, hypnotic pull lately, as Americans have watched the Golden State roll toward what might just be financial Armageddon. The state government is facing a $24 billion deficit, but Democrats and Republicans in Sacramento, Calif., are showing very little ability to get the problem solved.

As a result, California is “less than 50 days away from a meltdown of state government,” the state controller said last week.

It’s hard to know whether to stare in horror or avert your eyes.

Our advice: Stare. Because in California’s example, there are lessons for Minnesotans and North Dakotans to learn.

One such lesson has to do with public-employee pensions and a state’s fiscal health. California faces unfunded public employee retirement benefits of somewhere between $300 billion and $1 trillion, a panel discussion at the Milken Institute’s State of the State Conference concluded in May.

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06/23/2009 - Posted by | Economy, Government Debt, Liberal Business, Redistribution of Wealth, Strange but True, Useful Idiots

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