Pension bomb fuse just got shorter

By Jon Coupal | Homeowners have enough to worry about in the current coronavirus crisis.

They face an April 10 deadline for the second installment of their annual property tax bill and there is no relief — yet — coming from either the governor’s office or the majority of county treasurer/tax collectors.

Many taxpayers have been furloughed or laid off and the chances are high that property values throughout America will take a hit — even in California.

How could things possibly get worse?

Here’s how. The coronavirus crisis and the damage it inflicts on the state’s economy has exposed the Potemkin village of the state’s actual financial condition.

For the last several years, we’ve been told that the “California Miracle” has left the state flush with a surplus of tens of billions of dollars. But that surplus will be quickly depleted because of the unexpected demands that the crisis brings.

Even more troubling is the impact on California’s debt balance, which is a mountain compared to the molehill of surplus revenue. And the bulk of that debt is in the form of unfunded pension obligations.

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