Will other cities take the bankruptcy route?

[BuffaloBill]

http://news.yahoo.com/analysis-detroit-filing-sends-benefits-warning-other-cities-121137056.html

 

There is at least the possibility of it with my new home city of Chicago being a prime candidate. The stately Illinois is going through its own pension challenges so there is no magic bucket of money to solve the current pension crisis.

 

Unlike some other cities facing the issue Chicago has maintained a strong core. However, they face an uphill battle if they think raising taxes is the solution. The solution likely lies in busting the expectations of pension holders and current city employees.

 

I recently bumped into two retired Chicago teachers in their late 50's proudly discussing their summer lifestyle on a boat in the harbor. Sorry but their deal is likely to be broken and I really don't feel bad about it. The sad fact is that they were misled and allowed themselves to buy into a broken system. No way should the taxpayers have to be the only group that picks up slack here.

 

 

 

 

 

[Jauronimo]

http://news.yahoo.co...-121137056.html

 

There is at least the possibility of it with my new home city of Chicago being a prime candidate. The stately Illinois is going through its own pension challenges so there is no magic bucket of money to solve the current pension crisis.

 

Unlike some other cities facing the issue Chicago has maintained a strong core. However, they face an uphill battle if they think raising taxes is the solution. The solution likely lies in busting the expectations of pension holders and current city employees.

 

I recently bumped into two retired Chicago teachers in their late 50's proudly discussing their summer lifestyle on a boat in the harbor. Sorry but their deal is likely to be broken and I really don't feel bad about it. The sad fact is that they were misled and allowed themselves to buy into a broken system. No way should the taxpayers have to be the only group that picks up slack here.

True, but since the common sense move is political suicide public pension cuts will be a last resort. By the time that conversation can even take place the can will have already been kicked to the end of the road.

[3rdnlng]

http://news.yahoo.co...-121137056.html

 

There is at least the possibility of it with my new home city of Chicago being a prime candidate. The stately Illinois is going through its own pension challenges so there is no magic bucket of money to solve the current pension crisis.

 

Unlike some other cities facing the issue Chicago has maintained a strong core. However, they face an uphill battle if they think raising taxes is the solution. The solution likely lies in busting the expectations of pension holders and current city employees.

 

I recently bumped into two retired Chicago teachers in their late 50's proudly discussing their summer lifestyle on a boat in the harbor. Sorry but their deal is likely to be broken and I really don't feel bad about it. The sad fact is that they were misled and allowed themselves to buy into a broken system. No way should the taxpayers have to be the only group that picks up slack here.

 

This could be part of the problem:

 

 

http://www.freerepublic.com/focus/f-news/2538477/posts

 

 

Posted on Sunday, June 20, 2010 10:22:49 PM by Qbert

It’s a huge pile of money when you learn what it’s for: the pensions of just the top 100 public school administrators in Illinois. That’s nearly $1 billion dollars for the pensions of 100 people, or an average yearly pension of $306,181.30 per administrator.

That’s nothing to sniff at.

The highest pension was valued at over $26 million dollars for a 29 year period. This is more money than most people make in a lifetime – just in pension payments for a public sector employee.

And we wonder why schools are running out of money, and why no matter how much of the stuff we throw at the problem, it doesn’t seem to make a difference in actual education outcomes.

Possibly – and this is a stretch, I know – but possibly actually putting that money toward children’s educations rather than toward hugely bloated pensions for public servants might actually make a difference.

This is where I see the real battle in the politics of public spending. At a certain point, truly egalitarian liberals are going to look at the stranglehold public sector workers have over state spending and realize that it’s inhibiting spending on other important things – from school supplies to healthcare for the poor.

Then they’re going to have to make a choice – side with the big public sector unions and sacrifice the poor and disadvantaged, or take a new approach to the public sector altogether and stop paying out these ridiculous benefits and retirement packages to people who probably don’t deserve them.

There are such things as 401k’s which do nicely for most people in the private sector. Most of us aren’t guaranteed hundreds of thousands of dollars a year for not working after the age of 56. Unfortunately, we are expected to pay into a system that has chosen to line the pockets of school administrators at the expense of children and taxpayers alike.

Before we talk about bailing out shortfalls in school budgets, we should take a look at where the money’s going.

 

 

http://washingtonexaminer.com/does-neil-c.-codell-deserve-a-26-million-pension/article/2618

[BuffaloBill]

 

True, but since the common sense move is political suicide public pension cuts will be a last resort. By the time that conversation can even take place the can will have already been kicked to the end of the road.

 

Pension cuts likely to come in the form of increased years of service to collect and a higher eligibility age is the softer route that is likely to be taken. As 3rdining points out the un or underfunded liability is massive. Current or near retirees in many of these govt jobs got a very sweet and kind deal. It is now unaffordable.

[3rdnlng]

Pension cuts likely to come in the form of increased years of service to collect and a higher eligibility age is the softer route that is likely to be taken. As 3rdining points out the un or underfunded liability is massive. Current or near retirees in many of these govt jobs got a very sweet and kind deal. It is now unaffordable.

 

It's 3rdnlng--third and long, dammit! I didn't misspell 3rd inning.

[/dev/null]

Starnesville

 

http://blogs.telegraph.co.uk/news/danielhannan/100227375/obamanomics-is-turning-america-into-detroit-ayn-rands-starnesville-come-to-life/

 

A friend of mine commented that we're living 3 movies. Atlas Shrugged, Idiocracy, and Robocop

[BuffaloBill]

 

 

It's 3rdnlng--third and long, dammit! I didn't misspell 3rd inning.

 

My error ....

 

But easy to remember now.

 

 

 

Starnesville

 

http://blogs.telegraph.co.uk/news/danielhannan/100227375/obamanomics-is-turning-america-into-detroit-ayn-rands-starnesville-come-to-life/

 

A friend of mine commented that we're living 3 movies. Atlas Shrugged, Idiocracy, and Robocop

 

Great read ....

 

There is too much kick the can down the road mentality. In my opinion coming from a sense of entitlement and just plain old ignorance. People have been dumbed down into believing there is just some great big bucket of money in the future that will offset all of the promises made by public officials.

 

If this situation is deemed to go "well" for Detroit then the path will be followed by others.

 

Think now about the billions also spent on infrastructure in Detroit that will go to ruin. All while there is a push to make sure the rings of suburbs sprawl further from the core. No easy answers here but it would be better to see future development headed into the core and not out. No way does this happen with horrible schools and crime rates that are mind boggling.

[B-Man]

[IDBillzFan]

Here's the woman they need cleaning up Detroit.

 

http://www.youtube.com/watch?feature=player_embedded&v=HTTpIxNGRgk

[/dev/null]

Here's the woman they need cleaning up Detroit.

 

http://www.youtube.com/watch?feature=player_embedded&v=HTTpIxNGRgk

 

She could start by mowing her lawn

[ExiledInIllinois]

 

 

She could start by mowing her lawn

 

Shhh, do you want her to lose 30 pounds?

 

Here's the woman they need cleaning up Detroit.

 

http://www.youtube.com/watch?feature=player_embedded&v=HTTpIxNGRgk

 

LoL... WOW! Carlos Danger may have a running mate when he goes national!

[\GoBillsInDallas/]

Judge allows San Bernadino to declare bankruptcy, and to stop making pension payments:

 

http://www.sbsun.com/government-and-politics/20130828/san-bernardino-eligible-for-bankruptcy-protection-rules-bankruptcy-judge

 

 

[TakeYouToTasker]

Judge allows San Bernadino to declare bankruptcy, and to stop making pension payments:

 

http://www.sbsun.com...ankruptcy-judge

The opposite is happening in Rhode Island. Our judges have decreed that reforms are in violation of the rights of our union members.

[B-Man]

The opposite is happening in Rhode Island. Our judges have decreed that reforms are in violation of the rights of our union members.

 

From Thomas Jefferson's first draft.

 

 

"We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and Rhode Island's pursuit of Bankruptcy."

[ICanSleepWhenI'mDead]

Pretty informative article on the problem of underfunded public pension obligations and possible solutions:

 

http://www.economist.com/news/united-states/21582282-pensioners-are-pushing-many-cities-and-states-towards-financial-crisis-who-pays-bill