Arnold Schwarzenegger: Public Pensions and Our Fiscal Future

arnold finally sounds like he is taking the problem seriously …

It’s as if Sacramento legislators don’t want a government of the people, by the people, and for the people, but a government of the employees, by the employees, and for the employees.

For years I’ve asked state legislators to stop adding to retirement debt. They have refused. Now the Democratic leadership of the assembly proposes to raise the tax and debt burdens on private employees in order to cover rising public-employee compensation.

But what will they do next year when those compensation costs grow 15% more? And the year after that when they’ve risen again? And 10 years from now, when retirement costs have reached nearly $30 billion per year? That’s where government-employee retirement costs are headed even with the pension reforms I’m demanding. Imagine where they’re headed without reform.

My view is different. We must not raise taxes or borrow money to cover up fundamental problems.

via Arnold Schwarzenegger: Public Pensions and Our Fiscal Future – WSJ.com.

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