California: Pension or Bust

Public pensions have attracted a great deal of public scrutiny recently.  State budget problems add fuel to a problem that is decades old.  The media and politicians love to politicize public pensions because the well being of retired workers evokes a lot of emotion with the public.  Both sides can tell the public that the fate of many retired workers hangs in the balance and their side will protect their interests.  Unfortunately, public pensions pin public workers against tax payers when it comes to funding their retirement pension and healthcare benefits.  The higher and less restricted that public pensions are, the more the state is at risk of carrying large unfunded liabilities (i.e. mandated fiscal responsibilities without dedicated funding).  The long term effects of unfunded pensions include chronic budget shortfalls, snowballing debt, State credit downgrades, and increased interest payments leading to larger budget deficits.

Bravo!, Dr Carson, You are a true Patriot!