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It’s July. The California State Legislature has successfully met the budget submission deadline of June 15, and it was signed by the governor. There was one small fly in the ointment: how to cut $12 billion in spending? All while trying to provide $750 million in tax credits annually to one specific industry: Hollywood. Go figure.
One massive spending reduction strategy that Gov. Gavin Newsom is negotiating is nonpayment for two years of the state’s unfunded actuarial accrued liability for retiree medical benefits. This nearly $85 billion debt would not be paid down by Sacramento and its employees, causing this languishing debt to increase from interest costs, for this unique lifetime benefit rarely seen in the private sector.
As an employee of the State of California, I'm operating on the assumption that none of the pensions promised to me will actually be there when I need it. If they're still solvent when I need it, great, but if not I fully intend to be prepared for that outcome.
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72 sats \ 1 reply \ @grayruby 14h
Likely a good assumption. Might want to get yourself some Bitcoin just in case. Haha
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His colleagues might regret not listening to him
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The state over promise and then steal (tax) from everyone in order to pay for said promises. Raise taxes once the debt gets too big and the “vicious circle” starts again. Now that the debt is getting out of hand they want to stop making payments which will definitely lead to higher taxes in the near future as well as lost benefits for those who need them. I live in California and I’m stacking sats because I not going to cross my fingers and hope that the state might have some surplus in the future to take care of me when I can’t work anymore. My wife works at an elementary school and I told her to not hold her breath either.
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stackers have outlawed this. turn on wild west mode in your /settings to see outlawed content.