Unionized Government’s Spending Agenda Spells Bankruptcy from New Jersey to Illinois to California
Unionized Government’s Spending Agenda Spells Bankruptcy from New Jersey to Illinois to California
The proverbial can will rust away to nothing if it is kicked often enough. That is what Police in Stockton, California have found out and that is what the pensioners in the entire Illinois retirement system will soon find out. Stockton Can Suspend Police Accrued Vacation Payouts A California Superior Court Judge says Stockton Can...
By Mike Shedlock
Illinois Admits $137 Billion in Retirement Liability to State Workers – NOT Including Local Governments
Illinois Admits $137 Billion in Retirement Liability to State Workers – NOT Including Local Governments
Editor’s Note: In this report Mike Shedlock references an acknowledgment by the state of Illinois that their best current estimate of the underfunding of their state employee retirement obligations is $137 billion. That’s just the underfunded portion, not the amount of the entire liability. But what is even more staggering is the fact that Illinois...
By Mike Shedlock
Bankruptcy, the Best Way to Deal with Public Unions
Bankruptcy, the Best Way to Deal with Public Unions
Distressed cities are finally doing what they should have been doing long ago, declaring bankruptcy to force concessions from public unions. Numbers are still a trickle, but at soon as a major city such as Oakland or LA selects that option, we will likely see a torrent of municipal bankruptcies. At a packed, two-day conference...
By Mike Shedlock
Property Tax Repeal on North Dakota Ballot
Property Tax Repeal on North Dakota Ballot
The granddaddy of property tax revolts is now underway in North Dakota. The North Dakota group, Empower the Taxpayer writes “On June 12, 2012, the voters of North Dakota will have the opportunity to make North Dakota truly ‘Legendary’, as the first to pass a state constitutional amendment that will abolish the property tax, prioritize...
By Mike Shedlock
Great Britain Bans Federal Worker Collective Bargaining
Great Britain Bans Federal Worker Collective Bargaining
I am pleased to report the end of collective bargaining at the national level. Unfortunately, I am talking about the UK, not the US, and also unfortunately, local wage bargaining will remain in place. The Telegraph reports National pay rates will be scrapped in budget. Millions of teachers, nurses, civil servants and other public sector...
By Mike Shedlock
California Tax Revenue Drops, Businesses Leaving
California Tax Revenue Drops, Businesses Leaving
California Tax Revenue Plunges Inquiring minds have noticed a huge plunge in California Tax Revenue for the month of February compared to February 2011. That is a 22.55% plunge in spite of the fact that this February was a leap year adding a day to the calendar. Madeline Schnapp, at TrimTabs Investment Research sent me...
By Mike Shedlock
New York Cities Borrow from Pension Funds to Make Payments into Pension Funds
New York Cities Borrow from Pension Funds to Make Payments into Pension Funds
In the worst possible form of kicking the can down the road, at the worst possible time as well (given the lofty overvalued condition of the stock market), To Pay New York Pension Fund, Cities Borrow From It First. When New York State officials agreed to allow local governments to use an unusual borrowing plan...
By Mike Shedlock
California Politician Submits “Personal Pension” Legislation
California Politician Submits “Personal Pension” Legislation
The gall, arrogance, and stupidity of public union pandering has reached new heights. A senate bill sponsored by written by Sen. Kevin de León, D-Los Angeles seeks to force businesses with five or more employees to create personal defined benefit plans, managed by CalPERS. The Sacramento Bee reports California Democrats push pension plan for nongovernment...
By Mike Shedlock
Stockton Nears Bankruptcy Because of Untenable Union Benefits
Stockton Nears Bankruptcy Because of Untenable Union Benefits
Bondholders of Stockton, California debt are about to be punished as City Manager Takes Steps Toward Bankruptcy. Stockton, California, may take the first steps toward becoming the most populous U.S. city to file for bankruptcy because of burdensome employee costs, excessive debt and bookkeeping errors that misrepresented accounts, city officials said today. The Stockton City...
By Mike Shedlock
Providence Rhode Island Faces Bankruptcy
Providence Rhode Island Faces Bankruptcy
Untenable pension promises made by corrupt politicians to corrupt unions in an unholy alliance is about to sink another city. Please consider Providence is facing bankruptcy Rhode Island’s capital city will be in bankruptcy by June if it doesn’t get help resolving its financial crisis. That was the dire warning from Providence Mayor Angel Taveras...
By Mike Shedlock
State Takeover of Detroit Finances Nears
State Takeover of Detroit Finances Nears
On January 29 Bloomberg reported Bing Races to Beat Michigan Deadline for Union Detroit Deal Democratic Mayor Dave Bing is racing to wrest concessions from 48 bargaining units to erase a $200 million deficit in the home of General Motors Co. and the cradle of the U.S. auto industry. Otherwise, the city of 714,000 dominated...
By Mike Shedlock
CalPERS Earned 1.1% on Investments in 2011, Plan Assumptions are 7.75%
CalPERS Earned 1.1% on Investments in 2011, Plan Assumptions are 7.75%
Pension plans rebounded sharply in 2009 and 2010 from the devastating losses in 2008. However they never got back to even. 2011 was another poor year, and in spite of the start to 2012 I expect this year and/or next year to suffer more losses, or alternatively the market to limp along with no gains...
By Mike Shedlock
David Stockman: The Triumph of Crony Capitalism
David Stockman: The Triumph of Crony Capitalism
David Stockman former budget director for President Reagan, appeared on Bill Moyers and presented his message about money, Wall Street financiers, and crony capitalism. Link: David Stockman on Crony Capitalism Money dominates politics, distorting free markets and endangering democracy. “As a result,” Stockman says, “we have neither capitalism nor democracy. We have crony capitalism.” Stockman...
By Mike Shedlock
Businesses Exit California and Illinois
Businesses Exit California and Illinois
Businesses have had it with poor business conditions in two of the most dysfunctional states in the union, California and Illinois. In an editorial, the Orange County Register reports Even profitable firms fleeing California Democratic reaction to the news that Waste Connections, a $3.6-billion company and major Sacramento-area employer, is headed to Houston to seek...
By Mike Shedlock