Economy

IT’S OFFICIAL! Liberals Have Finally Ruined California – COLLAPSE IMMINENT After …

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VIA| Tom Del Beccaro is one of the smartest people you will ever meet.

He ran for Senate in California recently and even though he lost he managed to expose a lot of the problems that exist in California thanks to decades of liberal “leadership”.

Jerry Brown, one of the worst governors in human history, talks about California as if things are going great and he even brags about his budget.

In reality, California is drowning in unfunded liabilities and that’s just the tip of the iceberg.

Del Beccaro wrote a great piece about it that’s getting a lot of attention.

From Federalist Papers:

Thomas Del Beccaro wrote an op-ed in Forbes that laid out the sorry state California has put itself in after years of infrastructure neglect, with those funds being diverted to illegals, global warming, and other such social-justice absurdity.

Del Beccaro wrote:

It is said that California has over $77 billion in deferred road, highway and bridge maintenance.  It showed this week with a sink hole in LA because of the rain they didn’t predict.  There is also the collapse of part of one of its main highways in the North, Highway 50, from the rain they didn’t predict – not to mention the Oroville dam, the break in a Central Valley levee and over-flowing dams causing flooding in places like the southern part of Silicon Valley.

There was a pipe that burst on the campus of UCLA a couple years back and it ended up causing a massive amount of damage.

Guess how old the pipe was?

90 YEARS OLD.

Of course, there is the whole issue of the lack of water infrastructure in California.  There is not enough of it to store and supply the water needed for its industry and residents.  Indeed, the system was designed for half those living in California today. Keep in mind that, three years ago, even the EPA said California needs $44.5 billion to fix the infrastructure that it has.

That tells you a little something about California’s infrastructure.

The state is literally falling apart at the seams.  When you’re one of the most taxed states in the union and you can’t build roads you know you have a problem.

The Sacramento Bee does a great job covering what a mess California is.

From Sacramento Bee:

For many years, the California Public Employees’ Retirement System and other state and local pension systems have assumed earnings, technically called the “discount rate,” in the 7.5 percent to 8 percent range, and they seemed to be generally on target.

With that assumption, California’s unfunded pension liabilities – the gap between what the funds expect to have and what retirees will be owed – are roughly $450 billion.

That’s a big number, but investment earnings have stumbled in the last couple of years. CalPERS gained 2.4 percent in 2014-15 and a minuscule 0.6 percent in 2015-16. That generally was the experience of other California and national systems as well.

Were pension fund overseers to drop their discount rates to the 4 percent range, roughly the rate private corporate systems use, California’s unfunded liabilities would probably surpass $1 trillion.

Yeah Jerry.  You are really doing a bang up job.

You can follow Tom on Twitter here.  I recommend it.

 

About Ira Montesa

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