This turmoil on Wall Street likely will result in taxpayers making up for investment losses within the state's public-employee pension systems either with higher taxes or through state spending cuts. (boldface mine--Darren)
State pension assets dropped almost $14 billion in the period from Oct. 1, 2007, to Sept. 30.
What this means is that pension systems, underfunded by the state for years, face an even bigger gap between their assets and what they'll ultimately pay retirees.
For example, in June 2007, the Illinois Teacher's Retirement System, or TRS, was at a funding level of 64 percent, making it one of the most underfunded public pension systems in the nation.
Yes, this is from Illinois, but I'd place cold, hard cash that it applies to most states--especially California.