Non-salary CA budget cuts

[Eugene]

[quote=davelj]
If we raised our “retirement” age to 70, we would no longer have a funding problem with either SS or Medicare, even given declining birth rates. That five year gap – 65 to 70 – puts a funding gap of tens of trillions of dollars in the numbers. When SS came into existence in 1935 the average US Citizen lived to be 65. That’s why they chose 65 as the age at which you’d start receiving benefits. This number has stayed the same since, despite the fact that the average US citizen now lives to 74. The root of our problem ain’t rocket surgery. It’s just that the AARP just won’t freakin’ budge on this issue, despite the impossibility of the math working out.[/quote]

Actually, we still don’t have a funding problem with either SS or Medicare. We have PROJECTIONS that we MIGHT have a funding problem around 2040, based on certain assumptions about birth rates, life expectancies, and healthcare costs over the next 30 years.

As for the raising of the retirement age, there is a saying that you can lead the horse to the water, but you can’t make it drink. You can rise the retirement age to 70 or 75 but that will not make 69 year old workers as valuable for the economy as 25 year olds.

[davelj]

[quote=Eugene]
Actually, we still don’t have a funding problem with either SS or Medicare. We have PROJECTIONS that we MIGHT have a funding problem around 2040, based on certain assumptions about birth rates, life expectancies, and healthcare costs over the next 30 years.

As for the raising of the retirement age, there is a saying that you can lead the horse to the water, but you can’t make it drink. You can rise the retirement age to 70 or 75 but that will not make 69 year old workers as valuable for the economy as 25 year olds. [/quote]

OK, let me be clearer, We WILL have a funding problem 25-30 years down the road using current assumptions UNLESS we either (1) raise SS and Medicare taxes substantially, or (2) raise the retirement age. In fact, using reasonable assumptions, I believe the Trust Fund is broke by then. SS and Medicare would be illegal Ponzi Schemes if they weren’t, effectively, underwritten by the power of the Govt. to (1) tax future generations and (2) raise the age at which folks can receive benefits.

I don’t care if 70 year olds are as valuable as 29 years olds. I just want them to be able to pay their own way for that five extra years. That’s two completely different sets of expectations – and my expectations are pretty low.

[davelj]

[quote=Eugene]
Actually, we still don’t have a funding problem with either SS or Medicare. We have PROJECTIONS that we MIGHT have a funding problem around 2040, based on certain assumptions about birth rates, life expectancies, and healthcare costs over the next 30 years.

As for the raising of the retirement age, there is a saying that you can lead the horse to the water, but you can’t make it drink. You can rise the retirement age to 70 or 75 but that will not make 69 year old workers as valuable for the economy as 25 year olds. [/quote]

OK, let me be clearer, We WILL have a funding problem 25-30 years down the road using current assumptions UNLESS we either (1) raise SS and Medicare taxes substantially, or (2) raise the retirement age. In fact, using reasonable assumptions, I believe the Trust Fund is broke by then. SS and Medicare would be illegal Ponzi Schemes if they weren’t, effectively, underwritten by the power of the Govt. to (1) tax future generations and (2) raise the age at which folks can receive benefits.

I don’t care if 70 year olds are as valuable as 29 years olds. I just want them to be able to pay their own way for that five extra years. That’s two completely different sets of expectations – and my expectations are pretty low.

[davelj]

[quote=Eugene]
Actually, we still don’t have a funding problem with either SS or Medicare. We have PROJECTIONS that we MIGHT have a funding problem around 2040, based on certain assumptions about birth rates, life expectancies, and healthcare costs over the next 30 years.

As for the raising of the retirement age, there is a saying that you can lead the horse to the water, but you can’t make it drink. You can rise the retirement age to 70 or 75 but that will not make 69 year old workers as valuable for the economy as 25 year olds. [/quote]

OK, let me be clearer, We WILL have a funding problem 25-30 years down the road using current assumptions UNLESS we either (1) raise SS and Medicare taxes substantially, or (2) raise the retirement age. In fact, using reasonable assumptions, I believe the Trust Fund is broke by then. SS and Medicare would be illegal Ponzi Schemes if they weren’t, effectively, underwritten by the power of the Govt. to (1) tax future generations and (2) raise the age at which folks can receive benefits.

I don’t care if 70 year olds are as valuable as 29 years olds. I just want them to be able to pay their own way for that five extra years. That’s two completely different sets of expectations – and my expectations are pretty low.

[davelj]

[quote=Eugene]
Actually, we still don’t have a funding problem with either SS or Medicare. We have PROJECTIONS that we MIGHT have a funding problem around 2040, based on certain assumptions about birth rates, life expectancies, and healthcare costs over the next 30 years.

As for the raising of the retirement age, there is a saying that you can lead the horse to the water, but you can’t make it drink. You can rise the retirement age to 70 or 75 but that will not make 69 year old workers as valuable for the economy as 25 year olds. [/quote]

OK, let me be clearer, We WILL have a funding problem 25-30 years down the road using current assumptions UNLESS we either (1) raise SS and Medicare taxes substantially, or (2) raise the retirement age. In fact, using reasonable assumptions, I believe the Trust Fund is broke by then. SS and Medicare would be illegal Ponzi Schemes if they weren’t, effectively, underwritten by the power of the Govt. to (1) tax future generations and (2) raise the age at which folks can receive benefits.

I don’t care if 70 year olds are as valuable as 29 years olds. I just want them to be able to pay their own way for that five extra years. That’s two completely different sets of expectations – and my expectations are pretty low.

[davelj]

[quote=Eugene]
Actually, we still don’t have a funding problem with either SS or Medicare. We have PROJECTIONS that we MIGHT have a funding problem around 2040, based on certain assumptions about birth rates, life expectancies, and healthcare costs over the next 30 years.

As for the raising of the retirement age, there is a saying that you can lead the horse to the water, but you can’t make it drink. You can rise the retirement age to 70 or 75 but that will not make 69 year old workers as valuable for the economy as 25 year olds. [/quote]

OK, let me be clearer, We WILL have a funding problem 25-30 years down the road using current assumptions UNLESS we either (1) raise SS and Medicare taxes substantially, or (2) raise the retirement age. In fact, using reasonable assumptions, I believe the Trust Fund is broke by then. SS and Medicare would be illegal Ponzi Schemes if they weren’t, effectively, underwritten by the power of the Govt. to (1) tax future generations and (2) raise the age at which folks can receive benefits.

I don’t care if 70 year olds are as valuable as 29 years olds. I just want them to be able to pay their own way for that five extra years. That’s two completely different sets of expectations – and my expectations are pretty low.

[Arraya]

I highly doubt the USG wont have funding problems until 2040. That is crazy talk. Believe it or not, SS is not in a locked box and we have a few little tiny budget problems going on now.

http://www.washingtonpost.com/wp-dyn/content/article/2009/03/30/AR2009033003291.html
The U.S. recession is wreaking havoc on yet another front: the Social Security trust fund.

With unemployment rising, the payroll tax revenue that finances Social Security benefits for nearly 51 million retirees and other recipients is falling, according to a report from the Congressional Budget Office. As a result, the trust fund’s annual surplus is forecast to all but vanish next year — nearly a decade ahead of schedule — and deprive the government of billions of dollars it had been counting on to help balance the nation’s books.

The Treasury Department has for decades borrowed money from the Social Security trust fund to finance government operations.

In other news Arnie threatens Obama with riots…

http://latimesblogs.latimes.com/lanow/2009/05/schwarzenegger-make-massive-cuts-to-welfare-health-care-student-aid-.html

Gov. Arnold Schwarzenegger is proposing to completely eliminate the state’s welfare program for families, medical insurance for low-income children and Cal Grants cash assistance to college and university students.

[Arraya]

I highly doubt the USG wont have funding problems until 2040. That is crazy talk. Believe it or not, SS is not in a locked box and we have a few little tiny budget problems going on now.

http://www.washingtonpost.com/wp-dyn/content/article/2009/03/30/AR2009033003291.html
The U.S. recession is wreaking havoc on yet another front: the Social Security trust fund.

With unemployment rising, the payroll tax revenue that finances Social Security benefits for nearly 51 million retirees and other recipients is falling, according to a report from the Congressional Budget Office. As a result, the trust fund’s annual surplus is forecast to all but vanish next year — nearly a decade ahead of schedule — and deprive the government of billions of dollars it had been counting on to help balance the nation’s books.

The Treasury Department has for decades borrowed money from the Social Security trust fund to finance government operations.

In other news Arnie threatens Obama with riots…

http://latimesblogs.latimes.com/lanow/2009/05/schwarzenegger-make-massive-cuts-to-welfare-health-care-student-aid-.html

Gov. Arnold Schwarzenegger is proposing to completely eliminate the state’s welfare program for families, medical insurance for low-income children and Cal Grants cash assistance to college and university students.

[Arraya]

I highly doubt the USG wont have funding problems until 2040. That is crazy talk. Believe it or not, SS is not in a locked box and we have a few little tiny budget problems going on now.

http://www.washingtonpost.com/wp-dyn/content/article/2009/03/30/AR2009033003291.html
The U.S. recession is wreaking havoc on yet another front: the Social Security trust fund.

With unemployment rising, the payroll tax revenue that finances Social Security benefits for nearly 51 million retirees and other recipients is falling, according to a report from the Congressional Budget Office. As a result, the trust fund’s annual surplus is forecast to all but vanish next year — nearly a decade ahead of schedule — and deprive the government of billions of dollars it had been counting on to help balance the nation’s books.

The Treasury Department has for decades borrowed money from the Social Security trust fund to finance government operations.

In other news Arnie threatens Obama with riots…

http://latimesblogs.latimes.com/lanow/2009/05/schwarzenegger-make-massive-cuts-to-welfare-health-care-student-aid-.html

Gov. Arnold Schwarzenegger is proposing to completely eliminate the state’s welfare program for families, medical insurance for low-income children and Cal Grants cash assistance to college and university students.

[Arraya]

I highly doubt the USG wont have funding problems until 2040. That is crazy talk. Believe it or not, SS is not in a locked box and we have a few little tiny budget problems going on now.

http://www.washingtonpost.com/wp-dyn/content/article/2009/03/30/AR2009033003291.html
The U.S. recession is wreaking havoc on yet another front: the Social Security trust fund.

With unemployment rising, the payroll tax revenue that finances Social Security benefits for nearly 51 million retirees and other recipients is falling, according to a report from the Congressional Budget Office. As a result, the trust fund’s annual surplus is forecast to all but vanish next year — nearly a decade ahead of schedule — and deprive the government of billions of dollars it had been counting on to help balance the nation’s books.

The Treasury Department has for decades borrowed money from the Social Security trust fund to finance government operations.

In other news Arnie threatens Obama with riots…

http://latimesblogs.latimes.com/lanow/2009/05/schwarzenegger-make-massive-cuts-to-welfare-health-care-student-aid-.html

Gov. Arnold Schwarzenegger is proposing to completely eliminate the state’s welfare program for families, medical insurance for low-income children and Cal Grants cash assistance to college and university students.

[Arraya]

I highly doubt the USG wont have funding problems until 2040. That is crazy talk. Believe it or not, SS is not in a locked box and we have a few little tiny budget problems going on now.

http://www.washingtonpost.com/wp-dyn/content/article/2009/03/30/AR2009033003291.html
The U.S. recession is wreaking havoc on yet another front: the Social Security trust fund.

With unemployment rising, the payroll tax revenue that finances Social Security benefits for nearly 51 million retirees and other recipients is falling, according to a report from the Congressional Budget Office. As a result, the trust fund’s annual surplus is forecast to all but vanish next year — nearly a decade ahead of schedule — and deprive the government of billions of dollars it had been counting on to help balance the nation’s books.

The Treasury Department has for decades borrowed money from the Social Security trust fund to finance government operations.

In other news Arnie threatens Obama with riots…

http://latimesblogs.latimes.com/lanow/2009/05/schwarzenegger-make-massive-cuts-to-welfare-health-care-student-aid-.html

Gov. Arnold Schwarzenegger is proposing to completely eliminate the state’s welfare program for families, medical insurance for low-income children and Cal Grants cash assistance to college and university students.

[paramount]

Facts from John and Ken:

1. Teachers in California on average make 35% more than the national average salary for teachers.

2. The State of California over the last 10 years has hired an average of 48 new employees every day of the year including holidays and weekends.

3. Most California State Employees are eligible for retirement @ 90% their last years salary at the tender age of 50.

The overall compensation package of the average state worker in California is nothing short of staggering.

[paramount]

Facts from John and Ken:

1. Teachers in California on average make 35% more than the national average salary for teachers.

2. The State of California over the last 10 years has hired an average of 48 new employees every day of the year including holidays and weekends.

3. Most California State Employees are eligible for retirement @ 90% their last years salary at the tender age of 50.

The overall compensation package of the average state worker in California is nothing short of staggering.

[paramount]

Facts from John and Ken:

1. Teachers in California on average make 35% more than the national average salary for teachers.

2. The State of California over the last 10 years has hired an average of 48 new employees every day of the year including holidays and weekends.

3. Most California State Employees are eligible for retirement @ 90% their last years salary at the tender age of 50.

The overall compensation package of the average state worker in California is nothing short of staggering.

[paramount]

Facts from John and Ken:

1. Teachers in California on average make 35% more than the national average salary for teachers.

2. The State of California over the last 10 years has hired an average of 48 new employees every day of the year including holidays and weekends.

3. Most California State Employees are eligible for retirement @ 90% their last years salary at the tender age of 50.

The overall compensation package of the average state worker in California is nothing short of staggering.

[Author]

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