California State Pensions Almost Broke, Says Study

The generous state pensions in California are driving the state to a major crisis.

"This is a really dire situation," graduate student Howard Bornstein said today at a press conference at the Stanford Institute for Economic Policy Research, which is publishing the students' findings. "If we don't do something now, we're going to have major issues in just a few years."

"The simulation shows that the state would need to invest more than $200 billion, and possibly as much as $350 billion, today to return the fund to a minimum responsible level of funding," said Bornstein, who noted that the figure is approximately four times the current state budget.

But trust Obama - when applied at the federal level, it's really going to save us money.