David Crane, Bloomberg

California Surplus Neglects Pensions

In 2002, Warren Buffett warned that derivatives were financial weapons of mass destruction. When later they exploded, we wondered why authorities did not act earlier. In 2008, the same Buffett warned about public pension-cost surprises. When that happens and wipes out K-12 education, people will ask why authorities did not act earlier. After all, they were warned. Gov. Brown should use the new revenue to address the teacher pension shortfall. If not now, when?


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