Why California is About to Fall Off Into an Ocean of Unpayable Debt, We're talking about a perfect storm: more state services needed for an aging population, a workforce that will spend more years in retirement than they did contributing to the funds, and a smaller ratio of working-age taxpayers and contributing state workers to pay for it all.
Some of the key findings in the report include:
- By around 2012 or 2013, the three major state pensions' obligations will be more than five times as large as total state tax revenue.
- Not only will California's growing senior population depend on Medi-Cal and other state services, but public school enrollment is likely to rise in the coming years. The state can ill afford to fund pensions by cutting back on these services.
- In 2009, the pension liability came out to $3,000 per working-age adult in the state. By 2014, it will triple to over $10,000 per working-age Californian.
- Raising employee contributions alone will be less effective over time as the ratio of actively contributing members to benefit recipients continues to decrease.
- Currently, the average state employee contributes to the system for 25 years, but will receive benefits for 26 years — and the number of benefit-receiving years is increasing as longevity improves. Read report here
Haase - Sustainable environmental and energy programs are impossible in a unsustainable economic environment.
This has grave implications for the future of green power, energy and environmental prosperity...
Much has been made globally of the problems of Ireland and Iceland. Yet California dwarfs both. It is the eighth largest economy in the world, with a population of 37 million. If it was an independent country it would be in the G8.
And if it were a company, it would likely be declared bankrupt.
Does the bankrupt state of California understand that they could purchase unlimited "dirt' cheap power from their neighbor ( Nevada As "Saudi Arabia of Geothermal Energy") and create millions of jobs with this? WHILE eliminating nearly all their debt in a few short years by walking away from the poor energy options bankrupting them?
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