As budget analyst Fred Silva told Capitol Weekly, solving California’s budget woes is not as simple as turning back the budget clock to 2004, largely because of locked-in—and crippling—pension and health care spending obligations. Certain cuts in health care, for example, would lead to the loss of federal revenue. And unions and state employees have no intention of making the state's solvency any easier.
State contributions to the government pension fund have, as Reason Foundation Policy Analyst Adam Summers notes, “jumped from $321 million in 2000-01 to $7.3 billion last year." It costs California nearly twice as much to house a prisoner per year as it costs Florida. Contemplating those facts, it’s obvious that the basic survival of the accoutrements of civilized living are not at stake in California’s fiscal crisis.
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