Dan Walters, on the job in California

Commentary: Surging pension costs push more California cities toward bankruptcy

Dan Walters, our senior brain in California journalism is discussing all the same issues about California rules and crowding out by pensions. 

Bankruptcy is the defacto condition, a requirement of the state law.  When the state legislature mandated union oversight of local government, the legislative function of local governments became politically bankrupt at that moment.

Getting the state supreme court involved in the middle of union contract negotiation does not really help, as Dan pointed out.  Mos cities are now talking openly of bankruptcy as a real economic option. The stock market is extremely illiquid, buyers and sellers become few and transactions larger going forward.  The market is all about California pension funds.