How Government Unions And Their Allies On Wall Street Are Destroying California
How Government Unions And Their Allies On Wall Street Are Destroying California
With government employees, a union agenda is inherently in conflict with the public interest, because unless taxes are raised, there is always a choice between higher wages for government workers, or investing in improving government services. With unions in the government, the overall union agenda – more wages and benefits, more union members – is...
By Editor
Detroit Faces Imminent Financial Crisis
Detroit Faces Imminent Financial Crisis
Michigan Live reports Detroit could run out of cash in December, plan must include layoffs Bing is expected to discuss a confidential Ernst & Young report obtained by the Detroit Free Press that suggests Detroit could run out of cash by April without steep cuts to staff and public services. That’s a grim prognosis, but...
By Mike Shedlock
Four Ways to Eliminate California’s Government Deficits
Four Ways to Eliminate California’s Government Deficits
The recovery has fizzled out in California with revenues $1.5 billion below overly-optimistic estimates. California tax collections since the start of the fiscal year have fallen $1.5 billion behind projections, raising concern that the most-populous U.S. state will face automatic spending cuts. Revenue was $810.5 million less than budgeted in October, bringing the total to...
By Mike Shedlock
Brown’s Pension Reforms Face Union-Controlled Legislature
Brown’s Pension Reforms Face Union-Controlled Legislature
Despite some encouraging details in Gov. Jerry Brown’s recently announced pension-reform proposal, there’s virtually no chance the state will seriously reform — or even seriously attempt to reform — a system creaking under the weight of up to an estimated $500 billion in unfunded liabilities. The proposal isn’t bad. It doesn’t go far enough to...
By Steven Greenhut
Public Sector Pensions Investing in Hedge Funds
Public Sector Pensions Investing in Hedge Funds
In less than five years California will have over 10 million residents who are over the age of 55 (ref. U.S. Census, California Demographics). If every one of these people were to receive a pension equivalent to what the average public employee in California can now expect after working full-time for no more than 30...
By Editor
San Francisco Political Establishment Fights Pension Reform
San Francisco Political Establishment Fights Pension Reform
To outsiders, liberal San Francisco may seem preoccupied with leftist protesters occupying prime real estate in the Financial District or with debating proper restaurant etiquette for the city’s small but flagrant nudist population, or until recently, with arguing whether male circumcision should be outlawed. But the prospect of bankruptcy focuses the mind, even in a city so obsessed with leftist causes celebres....
By Steven Greenhut
California’s Public Safety Compensation Trends, 2000-2010
California’s Public Safety Compensation Trends, 2000-2010
Today’s Wall Street Journal published an article by Phil Izzo entitled “Bleak News for Americans’ Income,” where, citing U.S. Census Data, it was reported that U.S. median household income – adjusted for inflation – fell by 7% over the past ten years. In constant 2010 dollars, the average household in the U.S. saw their income...
By Edward Ring
Hollywood Florida Residents Vote to Cut Government Worker Pensions
Hollywood Florida Residents Vote to Cut Government Worker Pensions
Residents of Hollywood Florida have had enough of exorbitant police, fire and city workers. In a referendum pitting a 23% tax increase against public union benefits, voters made the smart choice. The turnout was small, but that should have favored the unions because every one of them probably voted to keep the gravy pain and...
By Mike Shedlock
Central Falls Rhode Island Bankruptcy Proposal
Central Falls Rhode Island Bankruptcy Proposal
Central Falls, Rhode Island set to file bankruptcy exit plan delayed by Irene Central Falls filed for bankruptcy Aug. 1, and receiver Robert Flanders said then that he wanted to submit an exit plan to U.S. Bankruptcy Court Judge Frank Bailey within 30 days. But Tropical Storm Irene forced Flanders to push back the self-imposed...
By Mike Shedlock
Harrisburg Pennsylvania Facing Bankruptcy
Harrisburg Pennsylvania Facing Bankruptcy
Harrisburg, Pennsylvania is bankrupt and has been for years. Instead of recognizing that simple fact, the mayor and most of the city council have been looking for miracles. There are no miracles and there will be no miracles. Fortunately, and at long-last, the city council rejected Mayor Linda Thompson’s scheme of selling city assets to...
By Mike Shedlock
What CalPERS REALLY Thinks They’ll Earn – 3.8%
What CalPERS REALLY Thinks They’ll Earn – 3.8%
When the taxpayer is backing up the entire liability for the pensions received by members of the California Public Employees Retirement System, then CalPERS officials are exuberant about the stock market. They insist that a predicted rate of return of 7.75 percent is perfectly realistic. When their own funds are on the line, however, CalPERS...
By Steven Greenhut
Texas Reformers Target Government Pensions
Texas Reformers Target Government Pensions
In a prelude for what will eventually happen in every state, a Battle brews over Texas public pensions. Texas could be gearing up for its own Wisconsin-style grudge match over public employee benefits. A group of high-powered Houston business leaders is starting a statewide campaign to overhaul retirement for future teachers, firefighters, police officers, judges...
By Mike Shedlock
Miami Gives Unions Two Weeks to Agree to Cuts
Miami Gives Unions Two Weeks to Agree to Cuts
The “good news” keeps right on rolling. As such, I keep wondering which major US city will be the first to declare bankruptcy. Please consider candidate Miami. Miami Declares Financial State of Emergency Bloomberg reports Miami Declares ‘Financial Urgency’ as It Moves to Cut Worker Pay, Benefits Miami, facing a $61 million fiscal 2012 deficit,...
By Mike Shedlock
Growing Gloom for States and Cities; What About Solutions?
Growing Gloom for States and Cities; What About Solutions?
A New York Times article accurately describes a set of fiscal realities in Sunday’s editorial A Growing Gloom for States and Cities. The New York Times wildly misses the mark as to who is to blame for this crisis. NYT: Washington should have been trying to find a way to help states avoid the layoffs...
By Mike Shedlock