The Pension Crisis Blame Game

Two articles in the Wall Street Journal and the New York Times this weekend show the grave threats to two great institutions, both of which I care deeply about.

The Times has a story on the threatened cuts looming over the University of California and the State University of California system.

Class sizes have increased, courses have been cut and tuition has been raised - repeatedly. Fewer colleges are offering summer classes. Administrators rely increasingly on higher tuition from out-of-staters. And there are signs it could get worse: If a tax increase proposed by Gov. Jerry Brown is not approved this year, officials say they will be forced to consider draconian cuts like eliminating entire schools or programs.

To get a sense of the problem, just consider this:

While there are more students than ever, the number of academic advisers has dropped to 300, from 500 a few years ago, for more than 18,000 undergraduates. Courses that used to require four writing assignments now demand half that because professors have fewer assistants to help them with grading papers, something other campuses have implemented as well.

Meanwhile, the WSJ reports that policemen and firefighters in San Jose, California are being insulted, flipped off, and outright despised. One officer was recently criticized at a supermarket checkout line for buying steaks. A firefighter reports being given the finger while in his truck. This is sad. These are people who are prepared to risk their lives to protect us. They do so for salaries that allow them to live well, but not well enough to actually afford a home in San Jose, where the median house price is over $400k.  Are these officers and heroes really the blood-sucking vampires that they are being made out to be?

Clearly the answer is no, and yet the officers do make very rich pensions. As the WSJ reports:

In the current fiscal year ending June 30, San Jose's retirement obligations soared to $245 million, up from $73 million a decade ago, according to the city. For police officers and firefighters who have retired since 2007, the average pension is $95,336, making them among the most generously compensated in the state.

The threat to the California public universities and the animosity to public-safety officers who make up an important part of the middle class are two sides of the same problem.  As pension costs soar, governments are taking away middle-class services like education, park playgrounds, and libraries. As middle-class taxpayers see their services cut, they blame those whose middle-class lives they are supporting. We are in for lots of this over the next decade.

The Arendt Center continues to follow the pension crisis because it is another example of the way that facts staring us in the face can simply be denied and ignored by those who don't want to see them. We also are following the pension mess because we care about politics and government. The attack on government today too often takes the form of a rejection of all public activity and the claim that all services and all valuable activities are private, not public.

-RB