Someone Forgot to Tell California's Bankrupt Cities About the Golden State's Alleged Economic Rev...
After California voters narrowly approved a hike on their income taxes this November, a species long thought extinct started re-appearing in the national media: the California-is-back story.Full Story
#1 Dec 27, 2012
"In order to make payroll and keep basic operations going, the city has stopped paying many of its debts, including the employer share of biweekly payments to CalPERS."
"The city now owes $8.3 million and is accruing a debt of $1.7 million a month even as the agency continues to pay $3.75 million in benefits to city retirees a month, said Michael Gearin, an attorney for CalPERS, during an almost five-hour hearing in U.S. Bankruptcy Court in Riverside on Friday."
This will continue, the CalPERS and CalSTRS are underfunded as it is. The 6 billion dollars in "new" tax dollars will go in most part to pension obligations. Jerry and the boys have effectively kicked the can down the road. The dominos have started falling and more cities will follow Stockton, Mammoth Lakes and San Bernadino into bankruptcy protection. This is the only way citys will be able to break the long term contracts that have put many municipalities in an untenable financial situation. Right now, public entities are rewriting wage and benefits packages to new hires and are doing what they can to push out tenured staff to lower their overhead costs.
Since: Dec 12
#2 Dec 28, 2012
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