California's Pension Problems

By Varney and Co

California’s budget gap of nearly $20 billion has the state struggling to find ways to trim spending in order to avoid insolvency. State pension costs are one reason why the state is moving further and further into the red without an end in sight.

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Former San Francisco Mayor Willie Brown joined Varney and Company to discuss the growing problem of exploding pension costs.

“Among many politicians there is a sense of urgency, but among those who are the recipients and beneficiaries of the pensions, they seem relatively comfortable that they will keep receiving their paycheck,” said Mayor Brown.

While pensions and benefits are one topic of debate in California, the main debate in the November Gubernatorial election is all about jobs and the budget.

“In California, it’s really the state budget. We don’t have a state budget and the prospects of getting one seem to be very slim,” said Mayor Brown. “We are in the unusual, uncharted waters of about a $20 billion deficit.”