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has cut 2,000 jobs, including 49 firefighters and 66 police officers. the new police station is also empty. san jose cannot afford to run it. >> taxpayers are paying for services. they should get those services. we're unable to deliver that and it's just going to get worse if we don't get control on these costs. >> reporter: these pension problems began back in the late 1990s. california was flush with tax revenue from the dot-com and housing booms and politicians gave generous new pension benefits to unionized workers-- up to 90% of their salary for life. >> when i first look at the numbers i do a double take. >> reporter: joe nation studies government pension costs at stanford university. how does the deal that government workers are getting compare to what most people get in the private sector? >> it's out of this world good. let's say you're making $100,000. you would retire at aged 50 with

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