As much as conservatives would like to suggest that teachers and janitors and bus drivers are to blame, even those scary, underfunded pensions aren’t a problem. For every dollar California pays out in pensions, it gets $1.47 worth of economic activity. For every dollar taxpayers put into the state and local pension system, they get $7.91 worth of economic activity. Much of that activity goes through local businesses and adds to state revenues. Importantly, it represents deferred compensation that the state agreed to pay in the future so it could offer lower salaries in the present.

Read full article [here].
by Natasha Chart, Calitics.

Posted: October 19th, 2010, by: admin. Categories: . Awaiting Comments.