Pension payouts are growing so fast that California’s school districts are being forced to lay off staff and close schools, a Stanford professor and author of a new study says.
LA Unified will have to cut spending by about 3 percent in 12 years in order to pay for the ballooning cost of its retirees’ pensions, according to the study. And it’s not alone. School districts, municipalities, and the state will have to contribute more to their retired employees’ pensions, which are “crowding out” money spent on services like teachers, librarians, and healthcare workers, former Democratic Assemblyman Joe Nation found in the recently released 200-page report called “Pension Math: Public Pension Spending and Service Crowd Out in California, 2003-2030.” Nation is a professor of public policy at Stanford University.
“Pension costs have crowded out and will likely to continue to crowd out resources needed for…