California budget: State workers may get 10% pay cut

[The Northerner]

NEW YORK (CNNMoney) -- California Gov. Jerry Brown unveiled on Monday a draconian budget plan that would slash $12.5 billion in spending and extend $12 billion in tax hikes.

The cuts would fall heavily on state workers and the state's neediest residents. Non-union public employees would lose up to 10% of their take-home pay and the state's Medicaid and welfare programs would see a $3.2 billion drop in funding.

Brown, who assumed office a week ago, has to contend with a $25.4 billion shortfall over the next 18 months. California's fiscal year starts July 1.

"These cuts will be painful, requiring sacrifice from every sector of the state, but we have no choice," said Brown. "For 10 years, we've had budget gimmicks and tricks that pushed us deep into debt. We must now return California to fiscal responsibility and get our state on the road to economic recovery and job growth."

The governor's plan also calls for extending 2009 tax hikes for another five years. The levies include a quarter-point increase in personal income taxes, which expired at the end of last year, as well as a 1 percentage point jump in sales taxes and an increase in the vehicle licensing fee, which expire on June 30.

Read more: http://money.cnn.com/2011/01/10/news/economy/california_budget_Jerry_brown/

[slackmaster]

1. Doubleplus good!

Perhaps their chocolate rations can be also increased from eight grams per week to six.

[jody]

2. CA has problems with public employee salaries, pensions, and benefits. I oppose using taxes from

other states to bailout CA.

Respect police, not pensions

I respect most police officers and firefighters for the jobs they do. They are very risky jobs and their shifts can be bad. They have to put up with the public, and some people can be pretty stupid. They should be compensated for a tough job.

But I have a friend who is retiring as a police officer at 52 and will get $135,000 a year for life! He will also get medical, dental and eye insurance. And if he dies before his wife, she will get $135,000 a year for the rest of her life! If he or his wife lives to 82, that's $4 million. And he paid into this only a fraction of what he will be receiving. This is outrageous. Most people can hope to get Social Security. No public employee needs or should get this much for retirement.

I'm hoping this is an extreme case. Imagine every city, county, state and federal employee in this country getting a retirement close to this. How are we going to pay for it?

Randy Wolfe
Lake Elsinore