State of California is broke

Self managed.

 

Yeah, but they're still placing their money with big time investment firms, right?

 

A really interesting article here... I'm sure it will cause quite a bit of a debate among the regulars here...

http://www.latimes.com/news/opinion/commentary/la-oe-malanga-wisconsin-california-bankruptcies-20120717,0,5879241.story

 

I assume, but Calpers is in charge of the mix.... perhaps they had a terrible asset allocation.

 

The 1 percent is not unusual -- the S&P 500 finished flat in 2011.

The 8 percent assumption is the ridiculous part.

 

Not enough Prop 13 talk.

 

That return is for the 12 months ended June 30 - the S&P returned 5.4% during that period.

 

Are GOP legislators willing to cut pension benefits for firefighters and police officers, because they weren't in Wisconsin?

 

I don't think that firefighters or police officers are a sacred cow for the minority GOP legislators. 9-11 was a long time ago.

 

I don't think it will matter because I doubt California would ever elect a governor who would be willing to do what Walker did in Wisconsin.

Brown has made some cuts, and while that's good, this is a state that needs a complete overhaul, something far more severe than what was done in Wisconsin.

How do you make something like that happen? I have no idea...

 

They were a sacred cow for Walker in 2011. Has the GOP come out for a plan to reduce the pensions of public safety workers?

 

According to this apparently nonpartisan site, the GOP recommends reductions for all state workers, none exempted. But I am not an expert in this - does that include those employed by municipalities?

http://sunshinereview.org/index.php/California_public_pensions

Legislators are beholden to whomever sweetens their coffers most.