California on fiscal brink


Schwarzenegger warns of layoffs if unions reject furloughs. Yup, they’re still paying chicken.

LA County officials describe potential ‘doomsday scenario,’ something that will happen if the state defers payments to the county

California says no income tax refunds, we’re broke.

In what is likely the last step before officially declaring insolvency, California has halted the processing of state tax refunds.

Ballot initiative in California would retroactively rollback public employee pensions.

Here comes the revolt. Public pensions in California are guaranteed by law to be fully funded. But Cal-PERS, who manages the pension money, vaporized 30% of their money last year. But, pension shortfalls must be funded anyway.

I’m guessing that those who have lost homes, jobs, and private pensions will be enraged by having to fully fund public pensions when they’ve lost so much, and thus the initiative could easily pass. It will be a divisive, nasty, no prisoners taken battle too.