State legislators in the pockets of public safety unions have re-introduced AB 1383, a bill that would boost pension promises without setting aside sufficient funds to meet those promises.
The real confusion for me is how do they ask for more money when there is deficit. In other words, how do they think they will pay for the raise? Perhaps my sense of economics is misguided, but borrowing has its limit and so does taxation? I have heard people who align with these ideas, and some of them think that the money will never end, there is always money. They tend to have no idea of math, accounting, or economics. It is all some type of wizardry.
It can get worse . In Illinois they have been issuing municipal pension bonds for years . As cities like Chicago have NO money left in local pensions , the state borrows MORE money to plug the hole . I’m waiting for California to issue its first “ pension bond “
The real confusion for me is how do they ask for more money when there is deficit. In other words, how do they think they will pay for the raise? Perhaps my sense of economics is misguided, but borrowing has its limit and so does taxation? I have heard people who align with these ideas, and some of them think that the money will never end, there is always money. They tend to have no idea of math, accounting, or economics. It is all some type of wizardry.
Sorry …we already do ..just not state bonds . Many cities ( LA ) have issued “ pension bonds “
Borrow money , then bet you can beat that interest rate . You know , like buying stocks ….on margin
It can get worse . In Illinois they have been issuing municipal pension bonds for years . As cities like Chicago have NO money left in local pensions , the state borrows MORE money to plug the hole . I’m waiting for California to issue its first “ pension bond “