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California's New Governor Doesn't Touch Pensions in Big Budget Cuts

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Infohawk

Lifer
Really Jerry? You mean you'd rather cut higher education than pensions? California's going to have an economy built around making unproductive retired baby boomers happy. The newest generations will be lucky if they can get job waiting tables for the very same people their taxes are supporting.

Brown's first actions as governor were bold, but not nearly bold enough - because until he unveils his plans for pension reform, he has yet to reach out and display a willingness to touch the electrified "third rail" in state politics.
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http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2011/01/11/BAOF1H6VJ1.DTL
 
How could you possibly cut someone's pension that you agreed to pay? That's like me going to the grocery store and saying "I can't afford to pay for all this stuff I got so I'll just pay you half, kthx bye"
 
Throckmorton said:
How could you possibly cut someone's pension that you agreed to pay? That's like me going to the grocery store and saying "I can't afford to pay for all this stuff I got so I'll just pay you half, kthx bye"
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A) Bankruptcy.
B) Re-negotiation. Your union can either choose to approve a change to the contract or get fired. Of course this guy's a slave to SEIU so it's not going to happen. But there are options.
 
Throckmorton said:
How could you possibly cut someone's pension that you agreed to pay? That's like me going to the grocery store and saying "I can't afford to pay for all this stuff I got so I'll just pay you half, kthx bye"
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Those aren't even close to the same thing holy fucking shit you are retarded.
 
Even better than not taking a look at pension benefits, he wants to cut state employee pay 10% across the board. Since state employees have a portion of their pay withheld to pay for pension obligations he's actually proposing making the system worse by cutting funding to the program (similar to the SSI tax cut just passed).
 
Throckmorton said:
How could you possibly cut someone's pension that you agreed to pay? That's like me going to the grocery store and saying "I can't afford to pay for all this stuff I got so I'll just pay you half, kthx bye"
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I understand your point, but it may not be the most accurate. Pensions are contractual obligations between the state and the employee whereas higher ed funding (outside of its own contracts) is largely discretionary. I hate to see that it has come to that situaiton in California, but it is one that will pop up more and more. There was a thread recently about what happened in Prichard, Ala. First it will be marginalized cities, then counties, then entire states - if we do not get a handle on the problem.
 
Throckmorton said:
How could you possibly cut someone's pension that you agreed to pay? That's like me going to the grocery store and saying "I can't afford to pay for all this stuff I got so I'll just pay you half, kthx bye"
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It's pretty simple. When you've agreed to pay someone not to work with money you don't have, the system falls apart very nicely. What we have now is unsustainable, it's always been unsustainable. It's been put together and run using an advanced management technique called "kicking the can down the road". We've run out of road.
 
sactoking said:
Even better than not taking a look at pension benefits, he wants to cut state employee pay 10% across the board. Since state employees have a portion of their pay withheld to pay for pension obligations he's actually proposing making the system worse by cutting funding to the program (similar to the SSI tax cut just passed).
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He's only talking about cutting non union employees pay.
 
the tax payer should be responsible for the school building,lights and heat. Everything else ongoing should be paid for by tuition. "Students" have been freeloading off the tax payer too long. The era of the unsettled continent is long over. The concept of "free education" is obsolete. When something is given away, what's it's worth?? If that's not good enough, pick another country.
 
He should have cut the K-12 budget also, more money isn't going to help educate idiots that don't want to be there and don't want to learn. Good students will learn regardless of how much money is spent on them.
 
Renegotiating/slashing future pensions based on future work is fair game. Cutting pensions based on labor already provided will just go straight to court and, barring bankruptcy, the state would lose.
 
Throckmorton said:
How could you possibly cut someone's pension that you agreed to pay? That's like me going to the grocery store and saying "I can't afford to pay for all this stuff I got so I'll just pay you half, kthx bye"
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How can you possibly pay something you promised when you don't have the money? Maybe they will start sending IOUs instead of pension checks?
 
IronWing said:
Renegotiating/slashing future pensions based on future work is fair game. Cutting pensions based on labor already provided will just go straight to court and, barring bankruptcy, the state would lose.
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State goes bankrupt and gets rid of all its existing pension obligations. State wins.
 
MovingTarget said:
I understand your point, but it may not be the most accurate. Pensions are contractual obligations between the state and the employee whereas higher ed funding (outside of its own contracts) is largely discretionary. I hate to see that it has come to that situaiton in California, but it is one that will pop up more and more. There was a thread recently about what happened in Prichard, Ala. First it will be marginalized cities, then counties, then entire states - if we do not get a handle on the problem.
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In short, the math is starting to win as it always does.... eventually.
 
IronWing said:
Renegotiating/slashing future pensions based on future work is fair game. Cutting pensions based on labor already provided will just go straight to court and, barring bankruptcy, the state would lose.
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My own pension fund had a situation where some retirees were mistakenly being paid too much. It's a long story, but what you say was upheld in federal court- payments could not be reduced, and future retirees whose situation is the same will also receive benefits greater than their contributions justify.

California may well be able to renegotiate wrt future benefits accrued, but that won't help short term.
 
Infohawk said:
Really Jerry? You mean you'd rather cut higher education than pensions? California's going to have an economy built around making unproductive retired baby boomers happy. The newest generations will be lucky if they can get job waiting tables for the very same people their taxes are supporting.



http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2011/01/11/BAOF1H6VJ1.DTL
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Is this even a surprise? Morons in CA elected him despite the knowledge that he was being backed up and financed by the state's largest employee unions.
 
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