View Full Version : States and Bankruptcy.....
http://www.nytimes.com/2011/01/21/business/economy/21bankruptcy.html?_r=2&src=busln&pagewanted=print
Policy makers are working behind the scenes to come up with a way to let states declare bankruptcy and get out from under crushing debts, including the pensions they have promised to retired public workers.
http://www.youtube.com/watch?v=03jwHrO7ubI
http://www.youtube.com/watch?v=KWasT7HK_KY&feature=related
No wonder municipal bonds are in decline.
http://latimesblogs.latimes.com/california-politics/2011/01/jerry-brown-to-declare-california-in-state-of-fiscal-emergency.html
Gov. Jerry Brown on Thursday is expected to declare California to be in a state of fiscal emergency, asking legislators to act quickly on a package to shrink a state budget facing a $25.4-billion shortfall.
mark46th
01-20-2011, 23:01
I live in California. I hope Brown declares the state bankrupt. It is the only way to abrogate the contracts with the unions that have bankrupted the state. California is the 8th largest economy in the world and it is broke. There is also a law that states 40% of the state's income goes to education. Los Angeles Unified School District has a graduation rate of about 60%. So much for throwing money at a problem. The money disappears into a black hole of pensions and waste. The whole state government needs to be put on a pay as you go basis. No more pensions that are 100% government funded. State employees can have IRA's or 401k's just like the rest of us. No more free health insurance, the policies can be changed to have larger co-pays, just like the rest of us. Welfare will be reformed. Free school breakfast and lunch- Gone. No more English as a Second Language. A duplication of effort. Teach them in English. The students drop out faster in ESL classes than in classes taught in English. California spends $50,000 per prisoner per year, Texas spends $20,000. It would be cheaper to build prisons in Texas and ship our prisoners there.
incarcerated
01-21-2011, 00:01
California spends $50,000 per prisoner per year, Texas spends $20,000. It would be cheaper to build prisons in Texas and ship our prisoners there.
Cheaper yet to send them to Mexico…or Albania. :D
Team Sergeant
01-21-2011, 10:12
It's not like we didn't "see" the indicators of this train wreck.....:munchin
Team Sergeant
Nation's Mayors Urge Obama to Help With Jobs, Maintain Federal Grants for Cash-Strapped Cities
By Stephen Clark
Published January 20, 2011
| FoxNews.com
Grappling with a brutal economic climate, more than 200 of the nation's mayors have descended upon Washington to urge President Obama to help cities out of the fiscal morass they find themselves in as state and federal aid dries up.
Several mayors, attending the annual National Conference of Mayors, met behind closed doors with the president and Vice President Biden on Thursday afternoon. Job creation is high on the agenda as the local executives push the administration to help find work in America's cities and townships, where 85 percent of the nation's population resides.
Los Angeles Mayor Antonio Villaraigosa said the group had a "great meeting" in which the president said he would focus on economic development and "the need for the federal government to partner with cities."
"What was clear to me, this is a president who is focused on our cities," Villaraigosa said after the meeting.
More than one-third of the nation's 363 metro areas are expected to have unemployment rates higher than 10 percent at the end of 2011, according to a report released by the conference and Global Insight.
continued:
http://www.foxnews.com/politics/2011/01/20/nations-mayors-urge-obama-cutting-federal-grants-cash-strapped-cities/?test=latestnews
mojaveman
01-21-2011, 10:54
I live in California. I hope Brown declares the state bankrupt. It is the only way to abrogate the contracts with the unions that have bankrupted the state. California is the 8th largest economy in the world and it is broke. There is also a law that states 40% of the state's income goes to education. Los Angeles Unified School District has a graduation rate of about 60%. So much for throwing money at a problem. The money disappears into a black hole of pensions and waste. The whole state government needs to be put on a pay as you go basis. No more pensions that are 100% government funded. State employees can have IRA's or 401k's just like the rest of us. No more free health insurance, the policies can be changed to have larger co-pays, just like the rest of us. Welfare will be reformed. Free school breakfast and lunch- Gone. No more English as a Second Language. A duplication of effort. Teach them in English. The students drop out faster in ESL classes than in classes taught in English. California spends $50,000 per prisoner per year, Texas spends $20,000. It would be cheaper to build prisons in Texas and ship our prisoners there.
Excellent points Mark,
I wish that the leadership in California thirty years ago could have had some extraordinary vision and taken care of some of these problems before they became unsolvable. Correct on the State employees, many of them leave the State after they retire and take the money with them. All of those illegals that are in the California State Prison system? How about a mandatory death sentence for any illegal who commits a felony here? "Sorry Julio, but we just can't afford it anymore, could you please lean back while we put this little needle in your arm? It will only take a second." I could go on and on but I'll stop.
I've actually been thinking about leaving and moving to America for a long time.
Dozer523
01-21-2011, 11:02
Excellent points Mark, . . .
I wish that the leadership in California thirty years ago could have had some extraordinary vision and taken care of some of these problems before they became unsolvable. You mean that Republican fellow, Pete Wilson 1991-1999 or that other Republican fellow George Deukmejian 1983-1991. Or that nice actor fellow Arnold Schwartzenegger, 2002-2010. surely you're not blaming that other nice actor fellow from 1967 - 1975? Oh wait it was those damned Dim legislatures.:D
The voters get what the want, and that's just what they deserve. A hell of a way to run a railroad.
How about just quit giving people that have never work but can a drug test. Positive results= not check for 6 mos.
no thread cross-polinization!
How about a mandatory death sentence for any illegal who commits a felony here? You must have a lot of taggers in your area <<LINK (http://law.onecle.com/california/penal/594.html)>>.:rolleyes:
You mean that Republican fellow, Pete Wilson 1991-1999 or that othere Republican fellow George Deukmejian 1983-1991. Or that nice actor fellow Arnold Schwartzenegger, 2002-2010. surely you're not blaming that other nice actor fellow from 1967 - 1975? Oh wait it was those damned Dim legislatures.:DThere you go again.
You mean that Republican fellow, Pete Wilson 1991-1999 or that othere Republican fellow George Deukmejian 1983-1991. Or that nice actor fellow Arnold Schwartzenegger, 2002-2010. surely you're not blaming that other nice actor fellow from 1967 - 1975? Oh wait it was those damned Dim legislatures.:D
The voters get what the want, and that's just what they deserve. A hell of a way to run a railroad.
no thread cross-polinization!
Dozer you forgot Gov. Jerry Brown who's aura smiles a never frowns 1975-1983..
Doesn't really matter who did or didn't do what......the Unions will get stock in California, the private investor is likely going to get left holding an empty bag and the Rule of Law is likely to be cast into the wind.
It should add to the already cheery environment :rolleyes:
As San Francisco struggles under ballooning pension and health care costs, the city’s retirees will receive unexpected cost-of-living bonuses totaling $170 million. The city’s anticipated budget deficit for the coming year is $360 million.
http://www.nytimes.com/2011/01/21/us/21bccola.html?_r=2
Nothing like charging up the cards before filing for bankruptcy
Retiredfire
01-21-2011, 20:12
It would be quit a slippery slope we put ourselves on if we allow States to discharge their pension obligations through bankruptcy. What is next? No more retirement benefits for retired or disabled military person? These changes will be voted on by individuals who only have to serve five years to receive their pension (congress and senate).
It would be quit a slippery slope we put ourselves on if we allow States to discharge their pension obligations through bankruptcy. What is next? No more retirement benefits for retired or disabled military person? These changes will be voted on by individuals who only have to serve five years to receive their pension (congress and senate).
I'm retired myself, and receive CRSC. My wife and I did a worse-case budget one day, and in the process came to the conclusion that if the government ever got so desperate it had to screw with my pension and disability, the shit would probably have already hit the fan.
mark46th
01-22-2011, 09:16
"I wish that the leadership in California thirty years ago could have had some extraordinary vision and taken care of some of these problems..."
Mojaveman- 30 years ago it was the same guy we have now- Gov Moonbeam.
Quote:
Originally Posted by Brush Okie
How about just quit giving people that have never work but can a drug test. Positive results= not check for 6 mos.
Brush- Mandatory under Welfare/Unemployment/Workers Comp Reform. Also included, payment for no more than 2 children. The government has destroyed the black family for the most part. Women only need a sperm donor, the government pays for the rest. When the American black family was intact, there was a husband/father in the dynamic. Now the husband has been replaced by a Welfare check.
Retired Fire- My wife is a retired teacher- We prepared for the event that we lost her pension. My son is an LEO, he is preparing for that event also. You didn't?
Retiredfire
01-22-2011, 09:44
In terms of preparing the answer is somewhat. I have an IRA but not eligible for Social Security. We were not eligible as public safety municipal employee and contributed to an annuity at the same % of pay (matched by town). I am currently a full time student(so I can work well into my golden years) and am in the process of becoming debt free.
On the subject i think society would have even greater problems if the pension obligations are disposed of while the corporate welfare and bailouts continue.
These problems (financial) will soon affect the general population with the upcoming insolvency of Social Security and Medicare.
mark46th
01-22-2011, 10:39
I have never planned on Social Security being my sole means of support when I retire. As I said, my wife is a retired public employee so she is ineligible for Social Security. I guess what I am trying to say is don't count on the government to be your sole means of support, especially after you retire.