That's the finding from a study released by Stanford University's public policy program, confirming a recent report with similar, stunning findings from Northwestern University and the University of Chicago, the Los Angeles Times reports.
Why should Californians care? Because this year's unfunded pension liability is next year's budget cut. For a glimpse of California's budgetary future, look no further than the $5.5 billion diverted this year from higher education, transit, parks and other programs in order to pay just a tiny bit toward current unfunded pension and healthcare promises.
That figure is set to triple within 10 years and, absent reform, to continue to grow, crowding out funding for many programs vital to the overwhelming majority of Californians.
In other words, at some point, virtually all the money in the educastion budget will go towards paying pension obligations, and zero for educating children. Most states have some version of the problem.
Economists talk about government spending crowding out private investment. Now we've got pension obligations crowding out on-going programs. If we aren't careful, we'll relatively soon have virtually all tax collections supporting debt service and pensions.
Economists talk about government spending crowding out private investment. Now we've got pension obligations crowding out on-going programs. If we aren't careful, we'll relatively soon have virtually all tax collections supporting debt service and pensions.
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