California’s Legislators play fast and lose with taxpayer money, services, and resources they’re elected to protect

They make Wall St Shysters like JP Morgan’s Jaime Dimon look like alter boys.

In  California’s Bad Bet Makes JPMorgan’s Look Minor,  David Crane writes:


California legislators on Sept. 10, 1999. They decided that investment gains would cover 100 percent of the cost of retroactive pension increases they granted that day to hundreds of thousands of state workers.

The politicians made the wrong bet — and the result has been a penalty to California’s budget that has averaged $2 billion a year ever since and that will cost the state billions more for decades to come.

Promising that “no increase over current employer contributions is needed for these benefit improvements,” and that the state pension fund would “remain fully funded,” the proposal, known as SB 400, claimed that enhanced pensions wouldn’t cost taxpayers “a dime” because of healthy investment returns. The proposal went on to assert that it “fully expects” the state’s pension costs to remain below $766 million a year for “at least the next decade.”
 

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