Typical Sacramento: Weak CalSTRS fix made even weaker

Typical Sacramento: Weak CalSTRS fix made even weaker

CalSTRSSo Gov. Jerry Brown is finally forced by events to come up with a CalSTRS pension rescue plan. And as Dan Borenstein points out, it’s so cautious that it doesn’t prevent CalSTRS’ underfunding from getting worse for some time to come:

“For more than a decade, lawmakers have ignored the increasing shortfall. Consequently, the California State Teachers’ Retirement System is now $74 billion underfunded, holding only 67 percent of assets it should have.

“Brown now wants to start paying down the debt this year. But he would stretch the installments until 2046, meaning it would take 32 years to restore full funding and that the debt would continue growing for the first 12 years.

“That’s not fiscally responsible; it’s merely less irresponsible than what lawmakers do now.”

It’s not irresponsible enough for Dem majority

And guess what? In the least surprising development of all time, even the governor’s irresponsible plan is too responsible for the Legislature. This is from Dan Walters:

“State legislators heard a heavy litany of complaints from school officials this week about Gov. Jerry Brown’s plan to make the State Teachers Retirement System solvent and in response temporarily toned down the bite on their budgets.

“The Brown plan aims to close a $70-plus billion unfunded liability by eventually raising contributions to $5-plus billion a year, with the lion’s share coming from the budgets of local school districts.

“But school officials told a joint legislative hearing that the sharp increases would wipe out much of the gains in state aid they are scheduled to receive during the remainder of the decade.

“In response, the chairs of the two legislative committees involved asked for a modification and on Friday, the Legislative Analyst’s Office released a revised chart that would reach the same level of financing sought by Brown by 2020, but lower the increase in the early years and raise it later.”

Yeah, sure, they’ll “raise it later.” To paraphrase an old Baltimore Sun columnist, no one will ever go broke underestimating the people in charge of the California Legislature.

23 comments

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  1. maximilian
    maximilian 24 May, 2014, 07:31

    A slightly modified approach on how to kick the can down the road.
    I’m fairly certain additional tweaks to the approach can be added
    as Sacramento officials leave office and a new batch of “leaders”
    take over.

    This is the legacy we leave.

    Reply this comment
  2. skep41
    skep41 24 May, 2014, 09:19

    When Gov Brown ‘fixed’ the pension system that basically pays teachers 80 or 90 percent of their inflated salaries with free health care forever he quoted fellow Californian Curly Howard by remarking, “This is so easy a MORON could do it!” And in fact it seems he is getting help from that special group of morons, our legislators in Sacramento. What could go wrong? Nyuk, nyuk, nyuk!

    Reply this comment
  3. NTHEOC
    NTHEOC 24 May, 2014, 10:29

    Blah,Blah,Blah,it’s no differen’t than the majority of people who take 30 years to pay down their mortgage! Yet, many choose to refi along the way and it takes even longer or they may never pay it down. “UNFUNDED LIABILITY” is just a term the doomers love to use cause it sounds dramatic. GOOD LUCK DOOMERS!!

    Reply this comment
    • Rex the Wonder Dog!
      Rex the Wonder Dog! 24 May, 2014, 14:28

      Blah,Blah,Blah,it’s no differen’t than the majority of people who take 30 years to pay down their mortgage!

      Mortgages do not get “paid down” with negative amortization NTHGEOC…go to college, take “Finance 101”, get educated, then come back to post with the Big Boys

      Reply this comment
  4. Bud Led Ted S.
    Bud Led Ted S. 24 May, 2014, 11:32

    True that NTHEOC !!

    Reply this comment
  5. Chris Reed
    Chris Reed Author 24 May, 2014, 11:39

    Sigh. Math isn’t real. Pension costs aren’t real. Everything about California is fine. All people who worry about costly retirement benefits squeezing out other government spending are bad people with bad motives.

    Sigh.

    Reply this comment
    • Bud Led Ted S.
      Bud Led Ted S. 24 May, 2014, 11:48

      No– You’re not so bad Chris– buck up little buddy! I know you’re well intentioned and doing the best you can with what you’ve got. We just disagree. Isn’t that what makes America truly great????

      Happy Memorial Day!

      Dust off the bar b q, fertilize the lawn and know that I am God. , No, I mean know that I am the Ted.

      The Ted

      Reply this comment
  6. Bud Led Ted S.
    Bud Led Ted S. 24 May, 2014, 11:44

    Hey fellas, and ladies, on another note can I get something off my chest here? I want to be vulnerable and admit something to the regular trolls out here. Seriously.

    It’s Sat am— I am still in the Ted’s PJ’s ™ sipping good black coffee carefully ground from the freshest and best Columbian beans. And I am up posting, bearing the Ted’s Soul ™. I do this ONLY to try to mentor a very special few of you little buddy doomers.

    What hacks me of this— I give my all on a Sat am– FOR YOU—- and I am not seeing enuf and fast enuf responses. Please know I realize that you each have your own “special” challenges and probably have to post with your Mom’s and Dad’s help, maybe with the aid of a dictionary or other ancillary tool of some sort, but I do feel a lack of effort sometimes. I too often am the one who has to post first on a topic or patrol the threads for insightful and delightful comments I can leave to elevate Duncey and Poodle Girl.

    I’ll leave you with this—PLEASE try harder little buddies!

    The Supreme Ted Steele Command System ™

    Reply this comment
  7. Leotis Ahmad Jones
    Leotis Ahmad Jones 24 May, 2014, 12:14

    Where is the sow? I need some sow. Help LA Jones, he needs the sow.

    Reply this comment
  8. Bud Led Ted S.
    Bud Led Ted S. 24 May, 2014, 16:30

    Attention– PLEASE see post number 6 above— one of my best!

    Reply this comment
  9. Leotis Ahmad Jones
    Leotis Ahmad Jones 25 May, 2014, 19:48

    Had the Revrend Cornelios Smthson say prayres todaz for Sow’ss husband. Feels sorre for the pour dudes. Shez 1 stubrn sow, gets doz horns up, no telling what nxxtz.

    Reply this comment

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