This is why Newt and Jeb Bush are bad for this country...

[warrior1]

http://www.latimes.com/news/opinion/commentary/la-oe-gingrich-bankruptcy-20110127,0,4958969.story

Better off bankrupt
States should have the option of bankruptcy protection to deal with their budget crises.

(Oh really!!)

During the 2008 financial crisis, the federal government reacted in a frantic, ad hoc fashion, tapping taxpayers for bailouts galore, running roughshod over the rights of bondholders and catching the American people unaware and unprepared. In contrast, we still have time to prepare for the looming crisis threatening to engulf California, Illinois, New York and other state governments.

The new Congress has the opportunity to prepare a fair, orderly, predictable and lawful approach to help struggling state governments address their financial challenges without resorting to wasteful bailouts. This approach begins with a new chapter in the federal Bankruptcy Code that provides for voluntary bankruptcy by states, a proven option already available to all cities and towns across America.

The figures for next year's budgets are staggering. California, which faces a $25.4-billion budget shortfall, will pay $100,000+ pensions to more than 12,000 state and municipal retirees this year. A Stanford study puts the state's unfunded pension obligations at more than half a trillion dollars. Illinois has a $15-billion budget deficit, prompting its governor and lame-duck Legislature to hike its personal income tax rate by 66%. New York, where 73% of the government workforce is unionized, is staring at a $10-billion deficit.


snip
(That's a flat out lie.)


http://www.calpersresponds.com/pension-financing-myths-vs-facts.php


Figures from Calpers - Myth: The State of California and taxpayers pay the total cost of public pensions.
January 26, 2011

Fact:

Investment earnings pay the majority of the costs of public pensions. For every dollar paid in pensions, 64 cents comes from investments.



Public employees pay for pensions as well. Each month State employees contribute a percentage of their paychecks toward their pension. Through agreements so far, State employees are paying 2-5 percent more out of their paychecks toward pensions for a total of 8-10 percent each month. This has saved California up to $400 million. In addition, more than 130 local governments have decreased pensions for new hires.


Myth: Public pension benefits are excessive and a drain on the public.
March 15, 2010

Fact:
The average CalPERS pension is about $25,000 per year. Half of CalPERS retirees receive $16,000 per year or less in benefits. Unlike the private sector, many CalPERS members do not receive Social Security, making their CalPERS pension their sole source of pension income, other than savings.

View Charts of CalPERS Retiree Annual Pensions

Fact:
Seventy-eight percent of CalPERS retirees receive $36,000 per year or less. School pensioners in the CalPERS program receive on average $1,079.00 a month.

Fact:
Only 1 percent of the nearly half million CalPERS retirees receive annual pensions of $100,000 or more. Many are retired non-unionized or specialized skilled employees or other high wage earners who worked 30 years or more. Many served in high-level management positions. View information about the Monthly Benefit Amount by number for all service retirees through June 30, 2009.



Fact:
CalPERS pensioners help stimulate the economy. A study found that pension income to 674,000 CalPERS and CalSTRS retirees generated an economic impact of $21.1 billion to the State’s cities and counties. The economic footprint of retiree spending rivaled that of the hotel and accommodations industry of the State in 2006. In all, California public retirees put back $2 into the economy for every $1 they receive in pensions.

[glowing]

1. And then the pensioned persons will get a royal shaft. Raise the taxes

on the wealthy and stem some of the money loss... Make the govt invest in the country, instead of trying to worry about the deficit. Cut the military in half and end the wars.

[snappyturtle]

2. Yes.