How the “California Rule” Holds Back Pension Reform

By Ivan Osorio, Openmarket.org

These days, local governments announcing bankruptcy seems like routine in California. Since the onset of the 2008 financial crisis, many state and local governments have seen their pension funds take huge losses. Yet, many of the underlying problems that have made pension shortfalls difficult to address go back many years — more than half a century, in fact.

Who Wants to See Their State Go Broke?

By Ivan Osorio, Openmarket.org

Few people would raise their hands when asked that question. But actually putting a state’s financing on sound footing is difficult in practice. That makes Rhode ‘s Island’s pension reform not only unique, but also a good example for other states to consider. Rhode Island got not only the policy, but also the politics right, according to Drew University political science professor Patrick McGuinn in a new Brookings Institution study.

California Isn’t Greece, But Has Tough Road Ahead

By Andrea Riquier, INVESTOR’S BUSINESS DAILY

Mountains of financial liabilities. Forced to issue IOUs when cash ran dry. A legislature in perpetual stalemate. Prickly relations with powerful public sector unions. At the worst of the financial crisis, California was often compared to Greece.

How to rescue pensions for Chicago’s City Hall and CPS

Chicago Tribune

In any rising crisis, there’s efficiency in proposing the most devastating, least workable solutions as early as possible: That allows discussions to migrate quickly toward more reasonable fixes before the crisis — here it’s the threatened implosion of public pensions for Chicago police, firefighters, teachers and other workers — reaches a terrible climax.