Home>Articles>Why Sen. John Moorlach Opposes California’s State Budget
Sen. John M. W. Moorlach. (Kevin Sanders for California Globe)
Sen. John M. W. Moorlach. (Photo: Kevin Sanders for California Globe)

Why Sen. John Moorlach Opposes California’s State Budget

California needs to downsize

By Katy Grimes, June 16, 2020 11:02 am

Senator John M.W. Moorlach (R-Costa Mesa) is the only CPA in the State Legislature. As such, his dire warnings about California’s budget deficit need to be considered. California Globe watched all of the budget debate Monday, and as usual, Moorlach schooled the Senate on why the need to take a long-term perspective.

Here are the highlights – you can watch his entire speech below:

“The state is addressing a dramatic recession that came on like a heart attack and was made worse by the Governor’s self-imposed coma of the state’s economy.

“Now is the time for serious systemic changes, as relying on reserves and federal funding will not be sufficient for the next few years. Consequently, Sacramento needs to address the budget at three levels.

“First, downsize. Counties, cities and school districts are reducing staff as a result of significant revenue reductions. California should do the same. For something visible and tangible that would communicate a seriousness for fiscal prudence would be to stop pursuing the High-Speed Rail project. The longer our Governor waits to make cuts, the greater the pain will be in the next two years.

“Second, in the next few years the two major pension systems, CalPERS and CalSTRS, will ask for even higher annual required contributions. California needs massive pension reform and the Governor would be wise to establish a committee to make recommendations. Reviewing the state of Wisconsin’s shared-risk pension plan would be a good starting point.

“And third, Sacramento must address its retiree medical unfunded liability of some $90 billion. Orange County successfully negotiated with its bargaining units in 2006 to reduce its obligation by 71 percent. A similar reduction would remove some $60 billion in liabilities from the state’s balance sheet and free up funds normally allocated to the annual required contributions.

“Sacramento has to take a long-term perspective. Giving it a couple of aspirins and hoping California and its subsidiaries will be fine in the morning will not cut it. This is why I am opposed to this proposed annual budget.”

Watch and listen to Sen. Moorlach’s speech in the Senate Monday. He explains to Senate colleagues state employees can’t have pay raises along with the looming, massive pension obligations.

Link to Moorlach’s Senate Floor speech on SB 74.

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