We told you Monday that cities - and other public agencies in California - will soon be paying millions more every year to refill the gaping hole in the California Public Employees Retirement System (even if they haven’t raised benefits one dime).
Today, our friends at The Wall Street Journal took a big-picture view of the issue that’s a bit terrifying:
“The cost of shoring up Calpers, the troubled $200 billion pension fund for California public employees, will ultimately fall on the state’s 38 million residents, who are already dealing with tax increases and reduced public services,” the Journal’s story reads. “The state and local governments are contractually bound to increase their payments to Calpers to help it make up for its investment losses of more than $50 billionin the fiscal year ended June 30. Officials around the state are calling for more oversight of Calpers, which announced Wednesday it was investigating fees paid by its investment managers.”
The fund’s losses mean “there is less money for parks and recreation, less money for the University of California, less money for health and human services,” an advisor to Gov. Arnold Schwarzenegger said.
Then WSJ quotes our pal, Fullerton City Manager Chris Meyer (right), talking about that extra $5.5 million the city is going to have to pay every year to refill the pension kitty.
And then it quotes Brett Barbre (below right), director with the Municipal Water District of Orang
e County, saying,“I think the taxpayers are going to be footing the bill for years because of less-than-stellar decisions on investments…. This is going to affect every city, county and special district that is in Calpers. They will have to cover all of the losses, as well as the ancillary issues that are being uncovered.”
For more on how “cities are held hostage by their pension-benefit costs,” read the WSJ story here. And for the many, many readers who ask why we keep harping on the pension issue - well, this is why.
More Watchdog:


Stern explains the way lawmakers do this even in the face of new rules tightening up the relationships between lobbyists and lawmakers. They create Leadership PACs, a new way to collect campaign contributions and evade pesky Federal Election Commission individual contribution limits.





