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People protest outside the U.S. Courthouse where federal bankruptcy Judge Steven Rhodes is to rule on Detroit's Chapter 9 bankruptcy eligibility December 3, 2013 in Detroit, Michigan. Judge Rhodes ruled that the city is eligible for bankruptcy protection and that pensions can be cut. Detroit is the largest city in U.S. history to file for bankruptcy.
City and union officials all over California are reacting to the pension ruling out of Detroit.
A judge presiding over that city's bankruptcy case ruled yesterday that public employee pensions are not protected from cuts, as officials there try to rebalance budgets and regain some economic footing. This goes against what most state officials in California have always believed, that pensions are sacrosanct under the law and can't be touched.
Dan Walters, columnist for the Sacramento Bee, joins the show to explain the implications of this ruling.