Today on the front page of the Drudge Report, the banner headline is a link a New York Times story talking about "quiet conversations" taking place about seeing how to possible change federal law to allow state governments to utilize some sort of bankruptcy-type approach to reorganizing debt. The Sacramento Bee’s Capitol Alert blog has a story on that here.
From where I sit, this is really all about a massive problem (that is not exclusive to California and local governments within the Golden State) — where politicians, largely those elected BY the political donations of public employee unions, have committed governments to long term employment contracts that are simply not affordable, or realistic. Of course I am referring to all of these overly generous defined benefit programs (I should note that not every government employee has a gold-plated plan, but a whole lot do).
Efforts to… Read More