California Bankrupt …. How Public Employee Unions are sucking California dry

Posted on January 28, 2010 by admin

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California Bankrupt …. How Public Employee Union are sucking California dry

Detroit is a prime example of what has happened to America in the past 3 years. The city looks like a ghost town. It is barren and full of destruction and despair. Some would argue that Detroit looks worse than Haiti - even after the horrific earthquake. How did Detroit get to that point? Ever hear of these three letters … U A W?

That’s right, the United Auto Workers. Never heard of em’? Well - basically they’re the group that bankrupt Detroit, with political blessing of course. As described by their own website, “The UAW, like other unions, spends the vast majority of its funds on collective-bargaining- related activity, as well as some amounts for political lobbying, community services, citizenship fund activities, international affairs, organizing, charitable donations, publications advancing the union’s political positions, certain litigation and other matters.” - What are those matters? Basically to suck taxpayers dry. There are hundreds of articles to back this up. Just google - “UAW Detroit Bankrupt” and you’ll find HUNDREDS of articles.

The problem right now is that unions are like termites. They slowly chomp away at the wood frame until the house comes tumbling down. And that’s exactly where California is right now. Without an exterminator soon, California will be looking for an even larger federal bailout. (They’ve already had one… you can Google that too.)

Just look at these statistics:

“Approximately 85% of the state’s 235,000 employees (not including higher education employees) are unionized. As the governor noted during his $83 billion budget roll-out, over the past decade pension costs for public employees increased 2,000%. State revenues increased only 24% over the same period. A Schwarzenegger adviser wrote in the San Jose Mercury News in the past few days that, “This year alone, $3 billion was diverted to pension costs from other programs.” There are now more than 15,000 government retirees statewide who receive pensions that exceed $100,000 a year, according to the California Foundation for Fiscal Responsibility.

Many of these retirees are former police officers, firefighters, and prison guards who can retire at age 50 with a pension that equals 90% of their final year’s pay. The pensions for these (and all other retirees) increase each year with inflation and are guaranteed by taxpayers forever—regardless of what happens in the economy or whether the state’s pensions funds have been fully funded (which they haven’t been).

A 2008 state commission pegged California’s unfunded pension liability at $63.5 billion, which will be amortized over several decades. That liability, released before the precipitous drop in stock-market and real-estate values, certainly will soar.”

Snort Report brings you this: State Treasurer Bill Lockyer, another prominent liberal Democrat, told a legislative hearing in October that public employee pensions would “bankrupt” the state.

The chief actuary for the California Public Employees Retirement System has called the current pension situation “unsustainable.”

So what is California going to do about its precarious financial situation?

If things don’t change quickly, the Watts Riots might look like a birthday party. Look out Detroit. California, the whole state, is knocking on your door.

Look out Detroit. California is knocking on your door.

What do YOU think about the California bankrupt situation?