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replica watch | replica watch | omega Auditor warns about looming debt crisis By Steven Greenhut 12:27 p.m. Sept. 30, 2013 ⎙ Print 🔖 Save 💬 Comments -   ✉ - Comments SACRAMENTO — Debates about California’s ongoing fiscal situation often have the feel of a partisan grudge match, as Democrats tout the newly balanced budget as proof of their political prowess, while Republicans complain about California’s grueling tax-and-regulatory environment.watches We’re all familiar with the “dreamâ€**** or “nightmareâ€**** arguments that accompany the fight. Whatever side one comes down on, it’s clear that some of California’s long-term problems – despite recent improvements on the budget front – are as intractable as ever.omegawatches A new report from California State Auditor Elaine Howle assesses “high-riskâ€**** issues faced by the state government. Not surprisingly, two of California’s biggest and largely unaddressed challenges involve shortfalls to pay for public-employee benefits.seamaster omega In particular, the auditor spotlights the pension plan managed by the California State Teachers’ Retirement System (CalSTRS) . It was almost fully funded in 2001, but was funded at only 67 percent in 2012. That’s well below the 80-percent level considered fiscally sound, she argues.omegawatches The state’s teachers – like most California public employees – receive a “defined-benefitâ€**** pension plan, in which employees receive a guaranteed monthly benefit based on a formula. Teachers typically earn 2 percent of their final pay times the number of years worked, meaning they can retire with 60 percent of pay after 30 years.watches sale Teachers and their employers each pay a portion of the benefit, with those funds invested in the market. If retirement-fund investments yield a lower rate of return than expected, the system faces higher “unfunded liabilitiesâ€**** to pay current and future retirees. It’s a major policy issue because any funding shortfalls are guaranteed by taxpayers.omega At the current rate, the CalSTRS system will be depleted in 30 years – meaning that schools and teachers will have to significantly increase the amount of money they contribute to the pension system or face greatly diminished retirement benefits. It’s a big problem, but it may be dwarfed by another one identified by the auditor – the state’s insufficient funding of health-care benefits for state workers and retirees. Agencies “prefundâ€**** pensions, but not health-care. As a result, the auditor points to a growing $64 billion health-care debt. California faces other mind-boggling problems as well. Even as the state embarks on two controversial infrastructure projects – a $68-billion High-Speed Rail system and a $25-billion Delta tunnel project – the report faults its inadequate upkeep of the existing system. “The state’s investments in transportation and water supply and flood management infrastructure have not kept up with demands,â€**** according to the report. It finds a $290-billion infrastructure maintenance shortfall for a decade – nothing too shocking to those who depend upon California’s congested freeway system. The auditor also raises concerns about the stability of California’s electricity system, the lack of succession planning to fill the gap as government employees retire, the failure of the state to successfully upgrade its computer systems, and uncertainties about prison realignment and even the budget situation. It’s hard to get too concerned about “uncertainties concerning the size of the state’s projected budget surplus and how the surplus should be spent.â€**** In what world are surpluses a problem? Page: 1 2 ➡ Steven Greenhut Government, Education & Border Read Articles More from Steven Greenhut Auditor warns about looming debt crisis Oil-fracking regs tap well of resentment Water 'superhighway' may dead-end in Delta On the agenda: This week's council, school board meetings Faulconer unveils police plan - Comments Be relevant, respectful, honest, discreet and responsible. Commenting Rules watch watches for men