I can't speak for what's going on in other states, but in California legislators hand out benefits to the unions and then, at election time, the unions deliver money and votes to get the politicians re-elected. The politicians then raise taxes and give more benefits to the unions and then, come election time, the unions deliver money and votes to the politicians. And round and round it goes. The more union member there are, the more votes the politicians can buy. From 1998 to 2008 the population of California increased 10%, but during that same period the number of government employees increased 31%
In California the unfunded pension liability is estimated at between $300B and $500B, depending on whose numbers you look at. By 2035, public employee retirement benefits will consume over 25% of the entire state budget.
California's bonds now have the lowest rating in the country. In 2010, 193 companies either moved out of California, or moved a significant part of their operations to other states. The latest unemployment numbers show California unemployment at 12.5%. "U6" unemployment is over 20%.
In California the unfunded pension liability is estimated at between $300B and $500B, depending on whose numbers you look at. By 2035, public employee retirement benefits will consume over 25% of the entire state budget.
California's bonds now have the lowest rating in the country. In 2010, 193 companies either moved out of California, or moved a significant part of their operations to other states. The latest unemployment numbers show California unemployment at 12.5%. "U6" unemployment is over 20%.