California begins the public sector spiral

Talking about the pension squeeze in Bakersfield California.

These figures represent increases of between 1 percent and 2.5 percent of payrolls depending on the employee group — but an increase of nearly 8 percent in earnest money.

The reason is simple, Smith said.

Not only did CalPERS raise rates but “our base salaries went up. And we’ve added back some positions that had been cut in previous years,” he said.

Having asked the Bakersfield City Council to make more than $1.7 million in budget cuts Jan. 20, in response to an estimated drop in sales tax revenue this fiscal year of about $1.4 million, city officials will be watching retirement costs closely as they plan next year’s budget.

Exactly as planned by California law. Npte the 8% budget hole, the real deficit not the long term smoothed liability.  That is just phase one, that budget hole will rise to 20% as the downturn feeds on itself. . .  Our negative feedback is law, demanded by Kanosians, so how in the hell do these boneheads complain about negative feedback?