I hope that all of you are well, especially now as stores and businesses are beginning to open up. Please stay safe.
This Marin Voice article, by Bob Bunnell, appeared in today's Marin IJ and I want to be certain everyone has an opportunity to read it.
It's a sure bet that we will hear government agencies blaming their budget shortfalls on Covid-19 but, as Bob points out, many - if not most - agencies already had large unfunded debt for pensions and benefits.
As you know, the Legislature is counting on a federal bailout, but it's certainly not a sure thing. Many members of Congress balk at the idea of bailing out states that have run up staggering pension liabilities, so it remains to be seen if California will need to look elsewhere for funds. While additional taxes might serve to shore up some of the debt, it could also drive more and more taxpayers and businesses out of California.
Pension reform is indeed the only viable solution, but will the California Legislature be courageous enough to stand up to the public sector unions? That remains to be seen.
Also, our newly revised website now has a link to the articles that I post daily on Facebook. Please check it out!