State Treasurer Bill Lockyer, who sits on both the CalPERS and CalSTRS public pension boards, got the attention of his listeners during a legislative hearing yesterday.
“It’s impossible for this Legislature to reform the pension system, and if we don’t it will bankrupt the state,” is the Lockyer quote jotted down by one observer. http://calpensions.com/2009/10/23/treasurer-lockyer-pensions-will-bankrupt-state/
This should have raised more than eyebrows, but should have had the hair on the back of your neck standup. Currently if CALPERS doesn’t have enough funding to cover pensions, then the State of California has to cover the shortfall. CALPERS Board of Directors can make investments but if the investments fail to meet expectations then they know that the state will bail them out. This is what happened during the financial crisis last year, but unfortunately most Californian’s are oblivious to the fiscal mess this state is in. Currently we are seeing Washington take the same route that California is going; soon we will all be like California. Kiss economic growth goodbye!!
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