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Colo. Amasses $3.7B In Unpaid Obligations : $1.1 Billion Shortfall Anticipated In 2011-12
ch 7 News ^ | December 5, 2010 | Justin Adams

Posted on 12/05/2010 3:28:14 PM PST by george76

In its struggles to deliver balanced state budgets over the past 10 years, Colorado has amassed $3.7 billion in obligations that it may never pay.

That sum includes severance taxes taken from municipalities, funds collected for such state services as tourism promotion and waste tire cleanup that were never delivered, prison and school bus costs that were never paid for, and other accounting tricks.

State budget analysts told the Legislature's Joint Budget Committee in November that the 2011-2012 budget, with an anticipated $1.1 billion shortfall, no longer includes the $3.7 billion cut over the years.

The amounts were included in the small print in annual budgets over the years, but this was the first year budget analysts even tried to add up the cost of these potential obligations, and ...

Potential state obligations include $430 million to cover lost federal funds for Medicaid; $264 million to fund a state reserve designed to cover any spending that exceeds constitutional spending limits; $90 million to cover a 2003 accounting trick in which the state moved one monthly paycheck for state employees into the next fiscal year; $705 million to reinstate public school finance cuts; and $103 million to restore a tax break for senior citizens.

(Excerpt) Read more at thedenverchannel.com ...


TOPICS: Business/Economy; Crime/Corruption; Extended News; Government; News/Current Events; US: Colorado
KEYWORDS: pensionbenefits; pensionfunds; pensions; retirement

1 posted on 12/05/2010 3:28:18 PM PST by george76
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To: george76

Colorado has been Californicated!


2 posted on 12/05/2010 3:29:17 PM PST by US Navy Vet
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To: george76

No wonder our roads are crap.


3 posted on 12/05/2010 3:32:07 PM PST by Trteamer ( (Eat Meat, Wear Fur, Own Guns, FReep Leftists, Drive an SUV, Drill A.N.W.R., Drill the Gulf, Vote)
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To: george76

Keep giving Money away! Illegals ,Unions and worthless Government agencies.


4 posted on 12/05/2010 3:33:44 PM PST by Cheetahcat (Zero the Wright kind of Racist! We are in a state of War with Democrats)
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To: US Navy Vet; Morgan in Denver; colorado tanker; Clintonfatigued; jan in Colorado; LucyT; Candor7; ..

Colorado’s largest public employee pension fund lost more than $10 billion in 2008.

the Public Employees Retirement Association or PERA can now meet only about 52 percent of its obligations.


5 posted on 12/05/2010 3:38:00 PM PST by george76 (Ward Churchill : Fake Indian, Fake Scholarship, and Fake Art)
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To: US Navy Vet
Colorado has been Californicated!

Perhaps California will flip them a loan to get them by after we as a country bail out California with money Washington doesn't have after China agrees to buy US bonds to cover us.

6 posted on 12/05/2010 3:39:05 PM PST by EGPWS (Trust in God, question everyone else)
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To: george76
the Public Employees Retirement Association or PERA can now meet only about 52 percent of its obligations.

What are they going to do, raise the retirement age and cut benefits?

7 posted on 12/05/2010 3:43:59 PM PST by EGPWS (Trust in God, question everyone else)
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To: george76

Here is a dirty secret about pension obligations in Colorado and mnay other states. The baby boom has hit public employee pensions. In Colorado, a crush of employees has retired as early as possible over the last 10 years. an increasing part of the portfolio must be invested to support the crush of retirees, many who spiked their pensions in creative ways.

The problem is long term interest rates. Private sector plans for lifetime income (single premium insurance annuities) purchase a portfolio of investment grade corporate bonds. However long term corporate bonds rates are not 3 to 3.5 percent a dismal rate for a long bond with lots of uncertainty about future inflation. Long term bonds are still in bubble so the pension agency has to be cautious in purchasing them. How can a pension manager generate income to pay for retiree benefits?


8 posted on 12/05/2010 3:51:19 PM PST by businessprofessor
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To: george76

Just one of a few “discoveries” conveniently made after electing Hick as Gov....


9 posted on 12/05/2010 3:56:16 PM PST by G Larry (When you're right, avoid compromise!)
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To: EGPWS; ExTexasRedhead; GSWarrior; BOBTHENAILER; dynachrome; MileHi; SaxxonWoods; beaversmom; ...

Auditors said employer contributions for state workers would have to rise to 17.91 percent, from the current 11.03 percent, for the fund to be fully solvent within 30 years.

http://www.aurorasentinel.com/news/state_and_region/article_11b81bc7-28a8-5332-83e9-bd19cf064753.html


10 posted on 12/05/2010 3:58:08 PM PST by george76 (Ward Churchill : Fake Indian, Fake Scholarship, and Fake Art)
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To: Cheetahcat

and we just elected a lying POS sanvctuary city mayor who wil become the sanctuary state governor, plus sending a libtard obama sock puppet back to the senate. we treat illegals in this state better than citizens.


11 posted on 12/05/2010 3:58:38 PM PST by bravo whiskey (If the little things really bother you, maybe it's because the big things are going well.)
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To: george76; All
Colorado’s largest public employee pension fund lost more than $10 billion in 2008. the Public Employees Retirement Association or PERA can now meet only about 52 percent of its obligations.

Are you saying that these leeches aren't getting their money? That's news to me. I have an acquaintance that recently retired from the State of Colorado. He was just telling me about how his fitness club membership is covered on his retirement insurance package. I asked him, 'do you really think the Colorado taxpayers will continue to subsidize your retirement with the unemployment rate so high?'...his response: 'well, then the state shouldn't have agreed to pay out that much money!' Well, can't argue with that!
12 posted on 12/05/2010 4:03:43 PM PST by notdownwidems (Vote Republican! We're 1/10 of 1% better than the other guys!)
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To: george76

Just another liberal state going down in flames.


13 posted on 12/05/2010 4:13:18 PM PST by oldbrowser (Blaming the prince of fools shouldn't blind anyone to the vast confederacy of fools that elected him)
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To: bravo whiskey

“and we just elected a lying POS sanvctuary city mayor who wil become the sanctuary state governor, plus sending a libtard obama sock puppet back to the senate. we treat illegals in this state better than citizens.”

The whole thing is money and now there is none.we will see how far these Rats go now.


14 posted on 12/05/2010 4:20:12 PM PST by Cheetahcat (Zero the Wright kind of Racist! We are in a state of War with Democrats)
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To: george76

I can guess who they want to make up the difference.


15 posted on 12/05/2010 4:24:01 PM PST by MtnClimber (Osama and Obama both hate freedom and have friends that bombed the Pentagon)
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To: bravo whiskey
and we just elected a lying POS sanvctuary city mayor who wil become the sanctuary state governor, plus sending a libtard obama sock puppet back to the senate.

Ain't the Tea Party great?

16 posted on 12/05/2010 4:24:51 PM PST by r9etb
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To: US Navy Vet

Caaliifoornia here we come!


17 posted on 12/05/2010 4:26:33 PM PST by conservativeimage.com
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To: george76

OK, it’s time to look into establishing Texas as my official residence. Bush the elder did it as I remember. No state income tax in Texas. Something tells me Lickenmypooper is going to raise taxes.

I wonder how many other states are going ‘discover’ similar problems soon.


18 posted on 12/05/2010 4:30:02 PM PST by SaxxonWoods (Gone Galt and loving it)
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To: george76

Demoncrap Governor left a mess.........well who would have ever thunk it.


19 posted on 12/05/2010 4:32:39 PM PST by Carley (ISRAEL.......NOT SO ALONE!!!)
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To: Cheetahcat

CO is a sanctuary state isn’t it? Sorta like CA.


20 posted on 12/05/2010 5:01:25 PM PST by Cobra64
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To: oldbrowser
The Greek columns didn't last long, huh?

Post Obama celebration mess:

.

All things considered, it fits the Obama model.


21 posted on 12/05/2010 5:11:58 PM PST by Cobra64
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To: Cobra64
"CO is a sanctuary state isn’t it? Sorta like CA."

For both illegals and liberals from CA, unfortunately.

Illegals are only part of the problem. Shrinking populations in rural counties, plus out of staters moving into Denver-Boulder. For better or worse, the Denver-Boulder cabal in the statehouse runs pretty much everything now.
22 posted on 12/05/2010 5:18:25 PM PST by CowboyJay
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To: george76

I am not sure who would be stupid enough to buy bond issued by these bankrupt states. Hopefully, it’s Soros.


23 posted on 12/05/2010 5:41:29 PM PST by Brilliant
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To: US Navy Vet

I went to school in Boulder in the 70s.

Back then, it used to be that the state was 90% conservative except for the few Marxist enclaves like Boulder.

What happened to that beautiful state?


24 posted on 12/05/2010 5:44:51 PM PST by FatherFig1o155 (Still fighting the fight. Until there's no fight left in me.)
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To: FatherFig1o155

California


25 posted on 12/05/2010 6:44:36 PM PST by US Navy Vet
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To: george76

The ‘RATS took over. Whaddya expect?


26 posted on 12/05/2010 7:23:17 PM PST by ChinaGotTheGoodsOnClinton (Standing by the walls of Minas Tirith as Sauron's forces pound the gates...)
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To: george76

Deport the illegals and most problems get a whole lot smaller...


27 posted on 12/06/2010 1:04:12 PM PST by jimt
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To: george76
Gee, what a shocker! Or not.

This headline:
Liberals Win Control of <insert government X here>

Will ALWAYS, INEVITABLY be followed by this one:
<insert government X here> Sinks Under <insert huge dollar value here> Debt

28 posted on 12/08/2010 1:47:43 PM PST by HKMk23 (Quit worryin' what other folks think; they don't do it all that much anyway.)
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To: george76

The Dems are SO PROUD that they turned the state blue....and are now doing to Colorado what they did to California, New York, New Jersey, Michigan, Massachussetts, and Illinois.


29 posted on 12/08/2010 6:38:31 PM PST by cookcounty (December 31st is coming.....STOP Obama's Midnight Tax Jack-Up!!)
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