It’s coming NJ, CA and other big blue states
New Jersey’s pension fund is now worth less than half of its obligations:
The latest losses — nearly $9 billion in October, and another $3 billion so far this month — mean the fund is now worth $57.8 billion, or less than half the $118 billion in benefits it is due to pay out over time.
Rather than face the piper on mismanaging trust funds or hitting taxpayers with massive property tax increases, they just kick the can down the road to 2012:
Cutting the payments in half may avoid a big surge in property taxes, but it also will add to the shortfall in the pension accounts dedicated to local government workers, police and firefighters.
You can see what’s coming – right? NJ, CA, all the big blue states are going to bide their time, kick the can down the road, until they can’t meet their payments and then they are going to bleat for a bailout.
This is exactly where we were in 2001 and 2005 when anyone who cared to look could see the financial banking crisis coming down the pike, yet our feckless political class did nothing.
The right thing is for them to change the promises. Just because someone works for the “public” doesn’t give them unfettered access to the public’s wallet.
H/T: Instapundit
November 30th, 2008 at 11:48 pm
I spent $1.05 today for a Charleston Chew. It was a nickle when I was a kid so long ago. So my math says a 1960 nickle is a $1.05 now or in the reverse a 2008 dollar is a 1960 nickle. Hence the govts have learned that kicking the can down the road is a good thing. A billion now is $50 million in 1960 money. Imagine that in 2050 a charleston Chew will be a bargain at 2 for $200… Pay em back with depreciated bucks…. smart politicians. Of course they take your NEWLY EARNED dollars to pay back the depreciated debt when it comes do. Or maybe they just refi the whole interest thing with additional bond sales on Thursday. So the scary part is when the OPEC guys decide that they want more for their bucks and interest rates rise and govt needs more tax revenues etc. Guess what.. The only person hurting TODAY is the business owner and the tax payor paying with CURRENT DOLLARS….Pretty good company really. IT gets more than 35% from all of its employees … I mean citizens…
December 1st, 2008 at 11:51 am
At some point the party ends…. we may be near that, I don’t know.