It's all largely due to soaring employee retirement costs. Government retiree costs to date have been improperly underreported to taxpayers, says Moody’s.
The new rules could nearly double California’s unfunded liabilities to $328.6 billion. Moreover, California cities that have already filed for bankruptcy protection, like Stockton and Vallejo, will fall deeper into the red.
Cushy pension stories continue to pour out of California.
One retiree in the County of Solano pulls in nearly $371,000 a year in retiree pay. Nearly 12,200 government retirees get $100,000 a year, including 94 city retirees in Stockton.
A retired librarian in San Diego somehow gets a $234,000 annual pension. A Newport Beach lifeguard got to retire at age 51 with a $108,000 annual pension plus health-care benefits.
30 Problem California Cities
They are Azusa, Berkeley, Colma, Downey, Danville, Santa Monica, Sacramento, Fresno, Glendale, Huntington Beach, Inglewood, Long Beach, Los Gatos, Martinez, Monterey, Oakland, Oceanside, Palmdale, Petaluma, Rancho Mirage, Redondo Beach, San Leandro, Santa Ana, Santa Barbara, Santa Clara, Santa Maria, Santa Rosa, Sunnyvale, Torrance and Woodland.