Politico reports that California Democrats plan to shelve a research bond measure for the University of California because “there’s only so much bond capacity.” That’s nonsense. California has issued only $80.77 billion of General Fund-supported bonds that cost less than 5% per annum and consume $8.23 billion of annual spending. Contrast that with issuance of nearly $200 billion of pension and other retirement debt to public employees that cost 6.8% per annum and consume $19.356 billion of annual spending.
GO bond debt is issued to produce new things. Pension and other retirement debt is issued for past activities. Lawmakers need to keep their focus on the future.
