Mortaged future

first_img AD Quality Auto 360p 720p 1080p Top articles1/5READ MOREBlues bury Kings early with four first-period goals 160Want local news?Sign up for the Localist and stay informed Something went wrong. Please try again.subscribeCongratulations! You’re all set! Gov. Arnold Schwarzenegger faced another setback last week, this one not at the polls, but in a court of law. A judge has ruled that the state cannot sell $525 million in bonds to cover pension costs, at least not without getting the public’s approval first. And that points to two serious problems facing California: First, even though revenues are up, the budget still depends on borrowing to stay “balanced.” Second is that soaring public-employee pension costs threaten the state’s long-term financial stability. The state cannot borrow its way out of its problems forever. This latest ruling is one more sign that Schwarzenegger and the Legislature must come together to address these issues head-on – and soon.last_img

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