California’s New Taxes Are Paying for Pensions

From Bloomberg:

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Last November, California politicians persuaded voters to support a proposed seven-year, $50 billion tax increase, largely on the vow that the money would go to public education. The first five words of the initiative’s title were “Temporary Taxes to Fund Education.”

Now, just four months after the election, the state’s Legislative Analyst’s Office has announced that the California State Teachers’ Retirement System requires an extra $4.5 billion a year for 30 years — $135 billion — to cover its unfunded liability for teacher pensions and that the money will have to come from some combination of school districts and the state. To the extent that it comes from the school districts, $4.5 billion a year is 167 percent of the annual amount those districts expected from the tax increase. To the extent that it comes from the state, $4.5 billion is more than 100 percent of the annual amount it expected in new revenue.

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  1. The voters really thought this money was going into education..?? LOL

    • Educating a room full of children about 9 buck a head per day. Placating the teachers’ union “priceless” NOT!

  2. Does “Low Information Voter” mean anything?

  3. George Lemel says

    California’s a lost cause and should leave the union to be become Cyprus West! I can’t wait to leave this once great state and I will when the time is right! Boxer & Feinstein have been in office for years and now we’ve elected Moonbeam for Governor,so what do you expect will come of this great state other than bankruptcy! Too many illegals, too many peeps on welfare and too much bull being taught in our school systems. I pray for California, but prayer won’t do it by itself! Perhaps we should have two California’s now, a North California and a South California. This would be good for those down south and I don’t care about those up north anymore! Conservatives should be pushing that agenda if they really want to save California!!

  4. OMG, tell me it isn’t true….The Pols lied to us….Again?

    Well, we get the government that we deserve.

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