David Crane has a new piece cross posted today at Fox and Hounds Daily and on Advancing a New Society
The title, With Retirement Costs Consuming One-Fifth of Discretionary Spending, California Must Reduce Un-Accrued Pension Benefits makes the point plain and simple. Then Crane breaks it down, for those who don’t understand the distinctions of public finance funds, budgets, and projections.
He breaks public funds down into categories, and even provides a chart for those of us who love graphics to help drive a point home.
Pensions and other retirement costs will consume more than 23% of discretionary state spending in fiscal year 2012-13, according to the budget recently passed by the California State Legislature and signed by Governor Jerry Brown – nearly three times the share taken up by retirement costs just ten years ago.
For Californians, rapid growth in retirement costs has meant less money for universities, parks, courts and other services as well as a temporary tax increase in 2009 and another being proposed currently (one of three proposed tax increases on the November ballot – Propositions 30, 38 & 39). In the absence of reform, that share will grow, which means even more taxes and fewer services.
California’s general and special fund spending for 2012-13 is budgeted at $131 billion and effectively fits into three categories: Non-discretionary, Fiscally-protected and Discretionary.
Allow me to explain all three in layman’s terms: (click here to go to Fox and Hound to read the full article)