Sen. John Moorlach explains California’s financial crisis at a Huntington Beach Town Hall

On July 12, state Senator John Moorlach (R-Costa Mesa), took part in a panel discussion on social investing for our state pension system (CalPERS) at a Town Hall in Huntington Beach. You can view the video here:

Also participating were Mayor Mike Posey and two executives from CalPERS: Brad W. Pacheco, Deputy Executive Officer, Communications & Stakeholder Relations, and Daniel Bienvenue, Managing Investment Director, Global Equity.

The topics discussed included:

  • The pension spiking 20 years ago that reduced CalPERS’ funding level from 100 percent to 71 percent today.
  • Government Accounting Standards Board accounting reforms that will add $91.5 billion in unfunded medical benefits to the state’s balance sheet for this year, bringing the unrestricted net deficit total to about $250 billion.
  • Reducing CalPERS’ investment assumption (or discount rate) from 8 percent to 7 percent today, meaning government bodies must pay more into the fund.
  • Why even the 7 percent assumption level is still much too high.
  • CalPERS’ investment philosophy.

The discussion lasted an hour, and was followed by half an hour of questions from constituents.

It’s a good, short introduction to the state’s financial position, especially the problems facing California’s taxpayers.

EDITOR’S NOTE: All of Fullerton’s city employees participate in CalPERS.

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