Posted on 10/14/2010 7:58:30 PM PDT by Libloather
The First 10 City Pensions That Will Run Out Of Money
Gus Lubin | Oct. 12, 2010, 10:52 AM
The municipal pension crisis is like the social security crisis but worse: Unlike the federal government, cities cannot legally go into debt.
This imminent disaster is described in a new paper out by Robert Novy-Marx and Joshua Rauh [PDF].
Novy-Marx and Rauh say most cities are burdened with unfunded liabilities, which are ignored by common accounting methods (see chart). Unfunded liabilities equal around $15,000 per household nationally, and up to $41,000 per household in some cities.
These cities are running out of money and will have to raise revenue or cut benefits to stay solvent.
Click here to see the cities >
(Excerpt) Read more at businessinsider.com ...
That chart needs a fourth line, “current funding level”. (Which might be at or below zero.)
“Unlike the federal government, cities cannot legally go into debt. “
Those states don’t need to worry, the Feds will bail them out.
Wow, Chicago at $42K/household unfunded.
Unfunded liability per household: $41,966
Solvency horizon: 2019
Source: Robert Novy-Marx and Joshua Rauh [PDF]
OMG!!!!
Freaking liberal politicians have been giving away money that doesn’t belong to them for so decades and it is finally catching up to them. Problem is that the solution is going to hurt and the retirees won’t care where the politicians have to go to get the money because they will move away to a lower tax city and state.
I’m suprised to see Pittsburgh didn’t make the list.
This city is in pretty pitiful shape in regards to unfunded pensions, I guess a lot of other places are even worse off.
I knew I’d see Cincinnati on there (#4) and that jackwagon mayor (Democrat of course) mark mallory is pushing spending billions on light rail by hook or crook.
We are going to be bombarded with sob stories about the poor public employees when these pensions run dry. It will be tremendously sad. But those employees were sold a ponzi scheme. It will happen sooner than projected. Once the mobile families learn how bad it is they will run from those cities and destroy the tax base. It will be “Escape from New York” all over again. Those suburban communities around those urban areas will be looted and pillaged.
The cities need to crank down on the promises as much as they can to avoid disaster and starvation of the pensioners.
I’m surprised to see Ft. Worth DID make the list. :-(
Darn; I thought that Chicago would be #1 for sure. Even in failure we are doomed to be the second city.
Light rail and other public transit are viewed as "jobs programs" by minority municipal officials. Along with the urban school districts.
These facilities aren't run for the benefit of the city, or even the patrons, but for the employees.
Light rail and other public transit are viewed as "jobs programs" by minority municipal officials. Along with the urban school districts.
These facilities aren't run for the benefit of the city, or even the patrons, but for the employees.
What happens when non-government workers pension plans get shot to hell as my 401K did, as well as probably about everybody else’s? We delay retirement as long as possible, downsize our expectations or get a job bagging groceries at the local Shop’N’Save. Why are government employees a special breed of cats who should just get to stick their hands into the taxpayer’s pockets?
screw-em... they didn't care where the money would come from while extorting their exorbitant pensions, so it there ISN'T any, tough stuff.
Little help please? I can’t get the list of 10 cities to load. Any one mind posting it for me?
9,. Detroit.
8. Baltimore
7. New York City
6. Jacksonville
5. St. Paul
4. Cincinati
3. Boston
2. Chicago
1. Philadelphia.
These cities are facing pension apocalypse:
2024 - Seattle
2026 - Dallas
2027 - Houston, L.A., Miami, San Jose
2028 - Memphis, Milwaukee
2031 - Tacoma
AS far as I can tell, they are all DEMOCRAT run cities.
Fear not; Chicago easily can catch the #1 position with just a few more corrupt debacles. A collapsing economy will help as will a beyond-bankrupt state government that never pays its bills or turns tax revenue to the City.
and then what?....can they declare bankruptcy and get a get out of jail free card?
my hubby s company was able to declare bankruptcy and dump all the pensions and medical retirement benefits....giving a sliver of what was due....
it would only be fair for govt workers to suffer the same fate...
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