California's budget dilemma

The State of California's controller, John Chiang, recently visited the Westlake Village area and gave a talk about the budget problems he faces and the future prospects for the state.  According to the local paper, Acorn, the controller talked about how the real estate crash of '07 caused a huge shortfall in revenues and an inability to meet the obligations of the state, predicting "It's going to be a rough couple of years", before things improve.  Chiang went on to discuss how the state's future depends on the skill set of the population (education system), financial capital and infrastructure, are the most important elements of the California economy and that all three of these components are now severely weakened by this crises.  He also talks about how Californians were living beyond their means before the crises and how the state will be in even greater trouble if commodity prices increase and consumer spending decreases.  Okay, all this analysis is interesting, at least to him, but what is the state doing to bring expenditures in line with revenues and what is it doing to address the outrageous stranglehold the public service unions exert over the economy, a condition that has been a growing issue for decades?  Not a peep!  Chiang offers no advice on getting the unions under control nor how to address the pension fund shortfall that represents a claim on taxpayers that for the present, at least, dwarfs everything else he talked about.  This City Journal piece suggests some of the issues Chiang and his cohorts should be talking about because they are immediate and if they don't get addressed there will be no money for any of the big picture issues he spent his time addressing.  What we're seeing here is a public official, in office as a choice of a governor who in turn is in office as a result of union financing and support.  Think these guys are going to get a handle on the really big problem?  It's pretty clear from Chiang's presentation they would rather talk about macro economic issues than address the union issue.

ADDED: This City Journal piece sets the record right with respect to exactly how much the 1.85 million state and local government employees are costing the rest of us.  There is no way this huge imbalance can or will continue.