What California government admitted as of 2008 conditions was:
- The California State Teacher's Retirement System is short $40.5 billion.
- The California Public Employee Retirement System is short $35 billion.
- the continuing home foreclosure crisis
- the further cost of bailing out Fanny Mae and Freddy Mac of about $300 billion
- the many states with hugely underfunded state pension funds totaling about $700 billion
- the many union multiemployer defined benefit pension funds with unfunded liabilities of about $700 billion which will destroy many unionized companies
- the much increased costs of ObamaCare which will increase everyone's premiums, increase medical taxes, greatly increase business costs, and put a huge strain on state budgets
- the increased costs of financial transactions due to the Dodd-Franks financial "reform" bill
- the increased costs of energy use planned by the EPA under its declaration that CO2 is a pollutant
- the increased costs of energy use due to ethanol, wind power, and solar power mandates, which California eagerly pushes forward
- government moves to force more unionization onto companies
- the ever increasing costs of more and more government regulations on businesses and those who pay the higher costs for their products and services
- our corporations will have the world's highest corporate tax rates beginning in 2011 and they are going up to help fund ObamaCare
When this entire burden falls on the Democrat-dominated state of California, the People of that state will know the Grim Reaper is among them. Actions and choices have their consequences despite a peoples' refusal to foresee those consequences. The California perpetual Christmas for retired state employees will have the characteristic of mass destruction for the people and companies of California. Currently, the state is spending about $180 billion in 2010. The unfunded pension liability is the equivalent of 2.1 times the annual state budget now. If the state of California were to try to rectify the shortfall in these pensions it has a legal obligation to pay, it would require a large increase in tax revenues, which it will be hard to come by due to growth since people and companies are fleeing the already over-taxed state now. Further tax increases will only accelerate the rate of abandonment. The Democrats have put the people and the companies of the state of California into a very unforgiving vise, thanks to their many vices.