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Former Press Secretary for Governor Schwarzenegger Aaron McLear weighs in on Sacramento's budget shortfall.
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Cut back here on Fox Business in Sacramento issuing a warning to its public employees in the city they either start contributing more.
To their pensions -- they just face the prospect of losing their job.
With more on all that is -- clear former Press Secretary.
Schwarzenegger out in California.
-- states yet California has been one for quite some time what about this move -- from Sacramento.
What really -- underscores the irony for progressives and the union bosses you know the war were spending money on pensions the west -- we have for salaries.
CF to start laying people off the less money we have for those programs the progressives love so much.
Whether it's higher read of the social safety -- parks.
Other really squeezing out funding for these other programs because -- spending so much more money on pensions.
What.
Of the facts in this seven look at the unemployment -- by the -- and not California still over 11% -- they can from what I read this fit very few of these rank and file workers out there who contribute.
Very much into their pensions that it at this point in other bit is a lot of this is being picked up so asking them to kicking and may seem -- -- sure -- that it seems like a big change their lifestyle but others watching say boy wonder why we -- to -- this little bit sooner.
That's right you to -- people out there who are getting pensions are getting must look much less generous pensions.
They see this basic commodity get to be much further than anybody else has the state level right now state employees pay about 5% of their salary.
-- the government pays about 10% of their salary.
Toward their pensions there's a movement afoot -- initiative this year that would switch that essentially to have the employees pay about 9% and the employer of the state in about 6%.
There's another movement -- that I think is very interesting to watch it's -- 2012 the presidential election year.
Coming -- -- just talking about with with Huntsman dropping out and everything else but that is.
The unions are gonna fight back against all of this is -- a move here for quite some time that we covered a lot of looks like the union movement is really taken a hit.
We look at Wisconsin now for example which was the big story last year there's a movement to -- call.
The governor now looks like they'll probably have a special election vote if they get enough signatures looks like look at it.
And Scott -- will be up for another election there -- -- he may not lose the election but still.
The unions.
Are going to fight back is that potentially a story here in 2012 do you think -- that might have presidential ramifications.
Well -- -- -- you have a lot of power you know business community has -- powers well but since a lot of governments are are starting to -- -- the budget shrink because the economy and because of other things.
-- people are seeing all the money -- for programs.
Is going down every year but the one thing that's going up one thing -- not losing money is pensions and we'll start to see wait a minute what I don't mind paying taxes for for government to run things battle all the good pensions and so that's upsetting before now though they did but do you think that union powers enough.
-- -- -- Switch things a little bit to switch the conversation away from unions losing power to say hey wait a minute.
Maybe not so fast.
The unions are really good at what they do -- unions are trying to fix government that's not their job unions are there to protect their members and since you get folks elected -- agree with evidence of that I have no question.
-- have a lot of money and they're gonna do really good job of getting their message out this year -- watch Wisconsin especially very very close to about California real quick -- and we -- -- things getting better out there we're now.
Well you know the governor here Governor Brown a Democrat actually recognizes the the problem that we have he calls a Ponzi scheme rightly so because we're paying money into the system that just didn't have the money to pay for the folks are paying money into it friends so -- -- we have an initiative this year and the governor wants reform than civil -- itself in our nuclear work for the -- former Governor Schwarzenegger -- very much coming out today we appreciate it.
