The State of California is dreaming, according to Lawrence McQuillan – an economics and finance expert with the Bay Area’s own Independent Institute. His new book (California Dreaming: Lessons on How to Resolve America’s Public Pension Crisis) points out that Governor Brown and the Democrats in the legislature are failing to deal plainly with the reality of economic trade-offs: it’s either worker pensions or government services. There's simply not enough revenue for both with the promises we're slated to make to public sector workers. Perhaps the Golden State has gotten away with tax hikes for so long because of its natural beauty and ideal weather, but McQuillan says this is no longer an option. He joins Bob to discuss the real reason behind UC tuition hikes and cuts to state and local services. Learn how politicians like Gray Davis sold out future generations, raising pensions during the dot-com boom, bankrupting California both financially and morally. Let’s hope Governor Brown is listening.
The California Rule: Eugene Volokh Federalist Society Paper “Overprotecting Public Employee Pensions: The Contract Clause and the California Rule” Dec. 31, 2013