Run before you start screaming

Standing in one spot and screaming before you start running won’t get you out of the state any faster.

The University of California’s Board of Regents recently voted to increase student tuition up to 25 percent over the next five years. UC president Janet Napolitano said the tuition hike was necessary “to maintain the University of California in terms of academic excellence.” But the real reason for the tuition increase is that the UC system needs funds to bail out the mismanaged pension system that covers retired employees of its ten campuses.

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The UC Board of Regents governs the UCRP, which has assets worth $53 billion and pension liabilities of at least $61 billion.

UC admits that it should have at least $8 billion more in the bank today to pay for the pensions it has promised to retirees. Other independent estimates put the unfunded liability as high as $16 billion. Either way, UC is scrambling to fill a massive hole and hitting up students for the money.

According to numbers supplied by UCRP’s actuarial consulting firm, Segal, UC needs to inject $1 billion more each year into the pension system for it to be fully funded in 20 years or so. The tuition increase will produce at least $100 million a year in new money, all of which will be swallowed up by the pension fund.

So, they are at least $8 billion dollars short, and their tuition increase will possibly cover 10% of what they actually NEED to be putting in there per year. AND, the leftists that run the state believe that tuition should actually be free for residents.

Either they are going to go bankrupt, or your property taxes are going to go up and your services are going to decline.

Run, then start screaming.