Tweet
The California Teacher pension plan IS insolvent.
"The California State Teachers' Retirement System is sliding down a steep slope toward insolvency. The threat isn't to teachers who have retired or plan to, but to the people of California. Taxpayers, who already pick up 23 percent of CalSTRS expenses, will be increasingly burdened as the giant pension system fails to meet its obligations.
"We're on a path of destruction," said Marcia Fritz, president of pension-reform group California Foundation for Fiscal Responsibility.
And merely rejiggering formulas for new employees won't rescue the system, she said. Simply put: "We overpromised."
The teacher pay 8%, the district pays 8%, and the citizens of California are currently paying 23%--in other words, the system is only paying 60% of the cost of the pensions. And, currently admits to a $40 billion in unfunded liabilities.
As teachers get laid off, teachers not hired, that money, 16% of the money needed will not be available. That means more money from the taxpayers.
California is bankrupt. We have the highest taxes, 2nd highest unemployment in the nation and hundreds of thousands of homes in the throes of foreclosure, and 40% of our homes are under water.
The California Depression will continue.
More...
"The California State Teachers' Retirement System is sliding down a steep slope toward insolvency. The threat isn't to teachers who have retired or plan to, but to the people of California. Taxpayers, who already pick up 23 percent of CalSTRS expenses, will be increasingly burdened as the giant pension system fails to meet its obligations.
"We're on a path of destruction," said Marcia Fritz, president of pension-reform group California Foundation for Fiscal Responsibility.
And merely rejiggering formulas for new employees won't rescue the system, she said. Simply put: "We overpromised."
The teacher pay 8%, the district pays 8%, and the citizens of California are currently paying 23%--in other words, the system is only paying 60% of the cost of the pensions. And, currently admits to a $40 billion in unfunded liabilities.
As teachers get laid off, teachers not hired, that money, 16% of the money needed will not be available. That means more money from the taxpayers.
California is bankrupt. We have the highest taxes, 2nd highest unemployment in the nation and hundreds of thousands of homes in the throes of foreclosure, and 40% of our homes are under water.
The California Depression will continue.
More...