Editor’s Note: UnionWatch contributor Mike Shedlock provides some perspective on the BART strike that began today, their 2nd this year. One impasse relates to the refusal of management to submit to binding arbitration on the remaining areas of dispute. Good for management. The possibility of getting an even worse result in binding arbitration is the...
It’s been said that after Al Capone was sentenced to prison for tax evasion in 1931, his chief financial and legal advisor, Jake “Greasy Thumb” Guzik, told other mobsters how to avoid Big Al’s fate. They must keep two sets of books. One set, that could be made public, would show “honest income” from a...
There are many implicit rationalizations justifying paying generous government pensions. Here are my nominations for the top ten bogus excuses: 1. “Public employees deserve high pensions because of their low pay.” FALSE. Perhaps true at one time, but not anymore. In many instances, today’s government employees are earning 10%-30% more than their true private sector...
Editor’s Note: An article published today in the Stockton Record’s reports “Deis: City won’t tackle pension reform.” Bob Deis is Stockton’s city manager. Apparently he doesn’t want Stockton to be the first to fall. As soon as one city restructures their pensions, every city and county in California will follow, because the alternative is a...
Most fire fighters do not get Social Security, so they completely count on the pensions they have contributed to, been promised and earned over a career. Take their pensions away or cut their pensions and you have fire fighters who risked their lives over a career to save others living in destitution, on public assistance,...
The one state arguably more troubled than California is Illinois. Unions, union sympathizers, socialists, and tax-hike proponents are strongly in control of both states. Is it any wonder that perpetual economic difficulties and insurmountable pension underfundings face both states? Via email, Ted Dabrowski at the Illinois Policy Institute writes … Unhappy Anniversary Six months ago, Illinois overtook...
On Sept. 23rd the New York Times published an in-depth report on how the cost of public employee pensions is causing budget challenges in San Jose, California. Entitled “Struggling, San Jose Tests a Way to Cut Benefits,” this article ran over 1,500 words and was filled with examples of city workers who are struggling financially....
With public unions threatening to seize Scranton assets including fire trucks, how long will it take for Scranton to do the smart thing and declare bankruptcy? The Times-Tribune reports Scranton police/fire unions get $21M judgment against city; may seize assets to collect. Scranton’s police and fire unions have received a judgment against the city for the...
“Just as the overseer of Detroit lied to the public about Detroit’s unfunded pension liability, these extremists are likewise lying to the taxpayers of Orange County, and they’re following his playbook.” – Jennifer Muir, Communications Director, Orange County Employees Association We’re not lying, Jennifer. We’re not even stretching the truth. What government union spokesperson Muir...
“Not surprisingly, within moments of news of Detroit’s bankruptcy, pension scare mongers took to their pedestals to place all the blame on pensions. California, Los Angeles, and other governments would surely follow Detroit’s footsteps in short order, they cried. It’s simply not true, like most of the claims made by the anti-pension soldiers who have...
DATELINE CHICAGO: Mayor warns property taxes could be going up 150%. Suppose the mayor of your city announced a property tax hike of 150% or, stated another way, two-and-a-half times your current tax. A homeowner accustomed to paying $2,000, would see their next bill increase to $5,000, while a bill of $4,000 would jump to...
As hoped and expected Detroit Bankruptcy Protections Affirmed, Snyder Shielded. Detroit can enjoy the protections of bankruptcy, including immunity from lawsuits related to the case, a federal judge ruled, extending that shield to Michigan Governor Rick Snyder. U.S. Bankruptcy Judge Steeven Rhodes in Detroit today blocked lawsuits by public employee groups and pension funds who alleged...
In an inevitable, anticlimactic decision today, Detroit files for bankruptcy. Detroit became the largest US city to ever file for bankruptcy on Thursday, seeking protection from its creditors as it restructures more than $18bn in debt. Richard Snyder, Michigan’s Republican governor, said in a letter included in the filing. “Detroit simply cannot raise enough revenue to...
Editor’s Note: This post by UnionWatch contributor Mike Shedlock covers familiar territory. Our parent organization, the California Public Policy Center, has published detailed analyses of the new GASB and Moody’s rules, including: “Moody’s Final Adopted Adjustments of Government Pension Data,” “How New Rules from Moody’s and GASB Affect the Financial Reporting of Pensions in Seven...