The wage crusher for the schools is the PENSION PLAN.

Incredibly, back when Davis was scrambling to save his office, every manner of pension boon was permitted.

What happened at the State level was then used by union negotiators to bump up their pension compensation, too.

Hence the over night riches of the Dot Com mania became folded into government pensions far and wide. Expectations that 8% risk-free returns, per year, after all expenses under-pinned the calculus!

Instead, the ‘Summers Effect’ kicked in: massive losses in all markets by the pension ‘managers’ must be made up by the taxpayers and then topped off with additional funds to cover the lack of profits in the funds.

On top of that — such investment pools are hugely exposed to Syn-CDOs. When you consider the adverse selections stuffed into these frauds — the taxpayers are going to be hit yet again when the market realizes that these ‘assets’ are time bombs.

It’s the chasmic asset collapses within the school pension scheme that is causing these rocketing budget gaps.

Pensions need to be re-set, retirements must be delayed. No other route provides a cure.