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It is such an expert about cities said joining me again Manhattan institute's fellow stabilized yet so we've we've got we've got this pension problem that skewed to me that the city of Berkeley.
Owes 400 and some million dollars underfunded.
For their pension plan that more than three years worth of -- higher payroll.
How how are they going to get out of this.
Well that -- -- this is part of the problem is that the cities don't have their future in California in their own hands when it comes to pensions because they're part of the state pension system they've adopted many of the state.
So they really have to rely on the state to do it now let me tell you something it is absolutely possible for courageous state.
And -- courageous governor to do -- pension reform that actually changes things.
Rhode Island recently did pension -- that eliminate cost of living adjustments they created a 401K style system.
They cut their long term liabilities and a half and they had some of the worst long term liabilities.
In the country it is possible to do this but you need -- In the state house to do this California's municipalities as I said before our groaning under the -- the this system.
You have places like San Jose Costa Mesa where pensions are eating up more and more the budget and crowding out other spending.
And they need help from Sacramento.
Look at I sit for a long time now we are basically a war brewing between taxpayers.
And public employees.
And -- MI due to some our traditional public employees calling yell at me but but I think there is one in weren't going to really the -- gonna hit the road is what you're talking about.
This idea of the fact that there are all these services.
That they it was that he will not be able to provide because being eaten up by the pension cost and people are gonna start screaming and I think the people minister extremely in the first.
Is a Jeff a dot -- from San Francisco and that was -- while until we can't provide all of these.
Liberal social programs because are being eaten up by the fact that -- And and that's a very important point and where are sorry to see -- I mentioned around in the second ago the person who was driving the change in -- -- the treasurer of the state -- -- The talks about herself as a progressive Democrat.
And her take on this was.
I came up out of work because they're like and I was able take advantage of all these government services including -- schools and his pension crisis is gonna squeeze that money out for the next generation.
Jeff and got you Sanford -- exact same point of view and so it is really.
The people are going up -- no well let's not say.
Because it is in California and that's one of the reasons why you see these stories like Stockton like Berkeley like Costa -- these cities on the break.
But it is changing and other places I guess I mentioned New Jersey the pension reform and and for people don't know Jim Sweeney who's ahead of the students from India in New Jersey as yet is an easy thing headed the Arab language is -- private sector entities that of these labor guy and -- and Christie got together and fix your pension reform.
And in Rhode Island private sector unions were also in favor of pension reform it is absolutely.
Becoming a bipartisan issue.
In certain places and where it is.
You do get genuine reform.
California is just paralyzed in Sacramento right now -- it really is the problem with the legislature there is just not moving they are so.
In incapable of actually doing any kind of reform right now that they are adjusts the -- are screaming out there because of this.
Dysfunction -- the word that used of course.
-- -- That that is absolutely -- -- is a dysfunctional system right now it's very clear -- have to be done.
It is it's not even something that would be trailblazing anymore because it is being done in other places not everywhere Illinois another place that they're just they're basically just.
Forward you know fool around raising -- are these.
-- like California and Illinois are they gonna come to was the federal.
Taxpayers and say give me some money.
Well you know it's very interesting you say that because I just this week senator Orrin hatch and a -- with the ranking Republican Senate Finance Committee committee put out -- report saying.
We don't want that to happen.
We -- this pension crisis at the state level could eventually become a federal crisis and perhaps we need federal legislation that gets these states in line.
That of that forces states like Illinois that just don't contribute to pensions to start doing that is not a leveraged -- debate.
-- clean your own house of that will be a great debate alright Steve maligned yet.
Great great today thanks for the double duty -- --
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