Saturday, May 4, 2013

Public Pensions and Bankruptcy

Stockton, CA: One Of America's Most Miserable Cities Just Got More Miserable - Forbes: " . . . Though some cities’ have traveled unique paths on the way to fiscal hell, in many cases, the pension crisis that was predicted more than a decade ago is upon us, and taxpayers in each of those cities and states will pay for the fiscal mismanagement. At the very minimum, city governments should ensure that local leadership can manage 100% of their revenues, along with their liabilities. A good example of this is the passage of Proposition A in St. Louis, Missouri. The successful effort returned control of the St. Louis Police Department from the state to the city of St. Louis. This move allows for greater efficiencies and accountability in the management of the department. It also saves the state and local taxpayers millions of dollars. When looking to where the next municipal bankruptcies may occur, one key indicator lies with public pensions that exist in an unsustainable environment. Escalating and unmanageable public pensions cannot be fixed overnight. Payouts are guaranteed and therefore cannot be rescinded. . . ." (read more at link above)


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