California once again leads the nation with a $26 billion budget deficit plus an unfunded pension obligation of $500 billion. Its current financial structure is clearly unsustainable. It has an operational structure that in ungovernable with often duplicative agencies, some collecting less in tax revenue than the agencies spend on collection. Wikipedia lists 500 existing public agencies for the State of California. California can no longer afford such a luxury. It must deconstruct these bloated inefficient government agencies, and rid itself of their chairman, staff, offices, cars, pensions and the overhead that such excess represents. A $26 billion dollar deficit is not something that can be corrected with a wage freeze or job furloughs. Bold leadership can lead California to deconstruct its 500 agencies down to 100 functional organizations. California is a classic example of what must change in the coming Great Deconstruction.
One Orange County city has already taken bold steps to correct its $10 million deficit. It may be a model for other cities and states across the country. Internally, it has decided it will not replace any city worker that dies, retires, moves or quits. The city will simply out source the employment to an outside service company and eliminate healthcare requirements and unsustainable pensions. Building inspectors will be out sourced as will city plan checkers, librarians and meter maids. Only essential services like top executives and cops will remain on the city payroll. The city staff will eventually decrease from 220 to approximately 35 personnel. This is the essence of deconstruction.
It’s going to get very ugly for the parasites. Let’s just hope they don’t end up killing the host.
[Update a few minutes later]
Business and unions meet to discuss upcoming pension disaster.