Pensions are America's Ticking Time Bomb

You know the union bosses' spending and benefits orgy is coming to an end when liberals like Fareed Zakaria of Time Magazine recognize the dangers unfunded pensions that union activists and pro-big labor politicians have created: "A day after Governor Scott Walker won his recall election, the New York Times wrote, "The biggest political lesson from Wisconsin may be that the overwhelming dominance of money on the Republican side will continue to haunt Democrats." Democrats have drawn much the same conclusion. "You've got a handful of self-interested billionaires who are trying to leverage their money across the country," said David Axelrod, Barack Obama's senior campaign strategist. "Does that concern me? Of course that concerns me." Warren Buffett calls the costs of public-sector retirees a "time bomb." They are the single biggest threat to the U.S.'s fiscal health. If the U.S. is going to face a Greek-style crisis, it will not be at the federal level but rather with state and local governments. The numbers are staggering. In California, total pension liabilities--the money the state is legally required to pay its public-sector retirees--are 30 times its annual budget deficit. Annual pension costs rose by 2,000% from 1999 to 2009. In Illinois, they are already 15% of general revenue and growing. Ohio's pension liabilities are now 35% of the state's entire GDP.

Pensions are America's Ticking Time Bomb

You know the union bosses' spending and benefits orgy is coming to an end when liberals like Fareed Zakaria of Time Magazine recognize the dangers unfunded pensions that union activists and pro-big labor politicians have created: "A day after Governor Scott Walker won his recall election, the New York Times wrote, "The biggest political lesson from Wisconsin may be that the overwhelming dominance of money on the Republican side will continue to haunt Democrats." Democrats have drawn much the same conclusion. "You've got a handful of self-interested billionaires who are trying to leverage their money across the country," said David Axelrod, Barack Obama's senior campaign strategist. "Does that concern me? Of course that concerns me." Warren Buffett calls the costs of public-sector retirees a "time bomb." They are the single biggest threat to the U.S.'s fiscal health. If the U.S. is going to face a Greek-style crisis, it will not be at the federal level but rather with state and local governments. The numbers are staggering. In California, total pension liabilities--the money the state is legally required to pay its public-sector retirees--are 30 times its annual budget deficit. Annual pension costs rose by 2,000% from 1999 to 2009. In Illinois, they are already 15% of general revenue and growing. Ohio's pension liabilities are now 35% of the state's entire GDP.
Big Labor's Wisconsin Vendetta

Big Labor's Wisconsin Vendetta

WI Teacher Union Losing Its Teacher Healthcare Monopoly Big Labor will spend millions trying to remove Wisconsin Gov. Scott Walker from office but facts about the local economy and the finances of state government is making the argument for removal much more difficult.  As the Wall Street Journal notes, Walker's reforms are working -- saving taxpayers money and putting people back to work: It's not turning out that way: The Apocalypse has not arrived for services, and Mr. Walker was able to balance the state budget without new taxes or looming deficits. They swore revenge for his offenses, and last week Wisconsin Democrats delivered what they say are a million signatures for the recall of Republican Governor Scott Walker... to campaign against reforms that have already saved taxpayers tens of millions of dollars and rescued the state from a budget crisis. Game on. Since last summer,  Big Labor waged and lost a bitter fight over the election of a state Supreme Court Justice and spent millions trying to recall Republican state senators. Last year state senator Spencer Coggs called Mr. Walker's plan "legalized slavery" while others predicted disaster for school districts and public services. In districts like Wauwatosa, Racine, LaCrosse and Eau Claire, the changes in health and pension contributions prevented layoffs that were expected to be widespread and in some cases allowed the boards not to fire a single teacher.
Big Labor's Wisconsin Vendetta

Big Labor's Wisconsin Vendetta

WI Teacher Union Losing Its Teacher Healthcare Monopoly Big Labor will spend millions trying to remove Wisconsin Gov. Scott Walker from office but facts about the local economy and the finances of state government is making the argument for removal much more difficult.  As the Wall Street Journal notes, Walker's reforms are working -- saving taxpayers money and putting people back to work: It's not turning out that way: The Apocalypse has not arrived for services, and Mr. Walker was able to balance the state budget without new taxes or looming deficits. They swore revenge for his offenses, and last week Wisconsin Democrats delivered what they say are a million signatures for the recall of Republican Governor Scott Walker... to campaign against reforms that have already saved taxpayers tens of millions of dollars and rescued the state from a budget crisis. Game on. Since last summer,  Big Labor waged and lost a bitter fight over the election of a state Supreme Court Justice and spent millions trying to recall Republican state senators. Last year state senator Spencer Coggs called Mr. Walker's plan "legalized slavery" while others predicted disaster for school districts and public services. In districts like Wauwatosa, Racine, LaCrosse and Eau Claire, the changes in health and pension contributions prevented layoffs that were expected to be widespread and in some cases allowed the boards not to fire a single teacher.