Hope to Prosper

I have been predicting for years government budget problems would finally boil over into a crisis.  This is starting to play out in states like Wisconsin, Ohio and New Jersey.  California, which has severe budget problems, is considering major layoffs of public employees.  The scope of these problems is well beyond superficial budget cuts.  And, massive tax increases are out of the question.  It’s going to take a courageous new direction to get these state budgets under control.  The solution being offered is a restructuring of benefits, with public employees contributing a larger share.

A Growing Cause of Budget Problems

The heart of the budget problems, for most states and municipalities, is the exploding cost of pensions and health benefits for public employees.  These costs are demanding an ever increasing share of state budgets and this is affecting other critical public services.  Cities and counties are also struggling, with many teetering on the edge of bankruptcy.  Some have outsourced their public services.  Others have simply stopped making their pension payments.  This problem is definitely going to get worse, as the population ages and a higher percentage of workers start retiring.

A Sense of Fairness

Most people respect and appreciate teachers, police and firefighters.  And, most people want them to make a good living and have decent benefits.  However, most people won’t receive a pension.  And, most people have to pay for part or all of their health benefits.  So, it doesn’t seem fair to some people to have to pay for their own health insurance, save for their own retirement and also be forced to pay for these types of benefits for public employees.  It seems only fair public employees should pay a fair share of their benefit package.

It is my personal opinion that every public employee, from the President of the Unites States to the people who pick up trash in the park, should receive the same type of health and retirement benefits as taxpayers.  I don’t think Congress or any other government entity should be exempt from any laws or requirements forced upon citizens.  I believe the retirement benefits for the President and members of congress are obscene and they should be replaced with a 401K plan.  These are the fundamental principles our country was founded upon.  Our government is not above the law or the people.

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