Thursday, June 13, 2013

Dan Walters: Is California's new budget balanced? Not really

Dan Walters brings some reality to the budget situation in CA:

The obligations being ignored include the California State Teachers' Retirement System's declaration that it needs $4.5 billion more per year to maintain solvency, and more than $50 billion in unfunded liabilities for state retiree health care.

Both of those debts – that's what they truly are – are growing by millions of dollars each day, as is the $10 billion that the state has borrowed from the federal government to prop up its insolvent Unemployment Insurance Fund.

A big chunk of the temporary tax increase is going to schools, as required by the state constitution. Some repays debts owed to the schools and some finances the governor's overhaul of how state aid is distributed, giving more to districts with large numbers of poor and/or English-learner students.

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