Skip to comments.The First 10 City Pensions That Will Run Out Of Money
Posted on 12/27/2010 8:03:23 AM PST by FromLori
The first total municipal pension default happened last week: Prichard, Ala. ran out of money stopped mailing pension checks.
Hundreds of cities could be right behind. Projections by Robert Novy-Marx and Joshua Rauh [PDF] show the average city has $15,000 per household in unfunded pension liabilities. These massive liabilities are ignored by common government accounting (see chart).
Insolvency means benefit cuts or borrowing from the already-near-broke states.
Many of the 77 cities surveyed by Novy-Marx and Rauh are facing insolvency within the next decade. Other small cities like Prichard could go even sooner.
(Excerpt) Read more at businessinsider.com ...
#9 Detroit...Unfunded liability: $6.4 billion Unfunded liability per household: $18,643 Solvency horizon: 2023
#8 Baltimore...Unfunded liability: $3.7 billion Unfunded liability per household: $15,420 Solvency horizon: 2022
#7 New York City...Unfunded liability: $122.2 billion Unfunded liability per household: $38,886 Solvency horizon: 2021
#6 Jacksonville...Unfunded liability: $4 billion Unfunded liability per household: $12,994 Solvency horizon: 2020
#5 St. Paul...Unfunded liability: $1.4 billion Unfunded liability per household: $13,686 Solvency horizon: 2020
#4 Cincinnati...Unfunded liability: $2 billion Unfunded liability per household: $15,681 Solvency horizon: 2020
#3 Boston...Unfunded liability: $7.5 billion Unfunded liability per household: $30,901 Solvency horizon: 2019
#2 Chicago...Unfunded liability: $44.8 billion Unfunded liability per household: $41,966 Solvency horizon: 2019
#1 Philadelphia..Unfunded liability: $9 billion Unfunded liability per household: $16,690 Solvency horizon: 2015
The GOP House must stand firm against any attempted new federal bailout...
Top 25 Most Liberal Cities:
1 Detroit Michigan
2 Gary Indiana
3 Berkeley California
4 Washington, D.C. Dist. of Columbia
5 Oakland California
6 Inglewood California
7 Newark New Jersey
8 Cambridge Massachusetts
9 San Francisco California
10 Flint Michigan
11 Cleveland Ohio
12 Hartford Connecticut
13 Paterson New Jersey
14 Baltimore Maryland
15 New Haven Connecticut
16 Seattle Washington
17 Chicago Illinois
18 Philadelphia Pennsylvania
19 Birmingham Alabama
20 St. Louis Missouri
21 New York New York
22 Providence Rhode Island
23 Minneapolis Minnesota
24 Boston Massachusetts
25 Buffalo New York
Wow, that’s a lot of Democrats scattering out from under the property taxes their elected politicians have obligated them to.
I don’t know if I would call Detroit most liberal. Ann Arbor and Kalamazoo both put Detroit to shame in the liberalism department.
Detroit has the most corrupt greedy leadership combined with an apathetic lazy population.
I didn’t get that list from this site, but........
I,m sure the federal reserve is looking for loop holes that will allow them to produce a Q whatever ______ to give them some green inked paper.
This is a good indication of a government owned by bankers...
Governments 100 years ago either ran a balanced budget, sold government bonds or had a SMALL debt that eventually was repaid.
For the last 45 years we have literally mortgaged our liberty to the bankers. The founders were very blunt about the dangers of domestic and international bankers; I guess it took a few generations to forget and hide what the founders taught.
You ‘left’ out Santa Cruz CA. and Madison WI.
Somehow it just seems perfect that Baraq’s Chicago leads the per capita debt list.
Agree the Fed has become nothing but Marxist Enablers by monetizing the debt and with the new voting members it appears will we see more of the same.
Historically, in most other countries with similar economic circumstances, few of these events come to pass. Thus government pensions are typically among the first things wiped out by inflation/hyperinflation.
Or putting it another way, the current levels of government largesse are simply unsustainable, and government promises are frequently poorly kept.
Almost 42K per HOUSE. Amazing.
Yes the Global Bankers not the small American Bankers they are dropping like flies while the large one’s that donated to obama,acorn have experienced no pain.
See this thread
A Ton Of Bailed-Out Banks Are On The Brink Of Collapse
Considering that close to half of those' households' are on welfare or other forms of assistance that estimate is off by at least a century. Simple truth...Chicago is Bust!
Wow, Fort Worth.
If you figure half, or more of the households are personally insovent, bairly existing, in effect, the households that might, just might at the point of a gun, might be able to be raped to pay, so it’s more like $80K per household.
The poor, elderly, one income can not pay, no matter what. Many will flee. Think sweeping fire of debt from home to home.
Anyway, Detroit is the future.
I was surprised by St. Paul though I know it’s really liberal I had no idea it was that bad I would have expected Minneapolis to be worse.
#7 New York City.
#5 St. Paul..
Government employees losing their fat bloated pensions?
This is long over due.
Like California, these cities just continue with their established ways. They operate under the belief that Obama will make it all OK.
Well, we had "Build America Bonds" so I guess, besides renewing the BABs, we'll have "Build Cities Bonds" and the Fed will merrily buy both.
What is this? A race to the bottom?
Ann Arbor has the Greenie Weenie Peacenik Blame America First Liberals.
Detroit and Flint have the 1930’s Huey Long, Woodie Guthrie and Union Newsletter Economic Liberals.
Most liberals I know literally believe there is no end to the money in "the richest country in the world".
On the very rare occasion when the realization hits that the country is going broke, it's met with swift, strong denial and then quickly and/or conveniently forgotten. China fuels this denial...for however long they care to string us along with loans (bribes)...
You've pointed to another paradox of liberal mentality. While they think there is no end to the money that government can dole out, they also believe that capital is a zero sum commodity and everyone who becomes well off has done so by making someone else poor.
1. Politicians want to get elected and reelected.
2. Unions contribute to their campaigns and gurantee turnout.
3. Politicians negotiate sweetheart deals with the unions.
4. Politicians underfund pensions so they can buy goodies for their contituents and buy more votes.
5. Before the stinky hits the fan, the politicians have moved on and/or retired.
6. Retirees and the taxpayers get screwed.
The average workers nationwide do not receive exhorbitant pensions. The fatcat bureaucrats do.
Banksters. The banksters own it all in the end.
Agreed. Without the ability to spend money they don’t have, the scam collapses. At the local level, short term obligations are being financed with long term debt. That’s a prescription for disaster. Worse yet, at the national level, the international banking cartel is now setting US policy. Our We have lost our sovereignty to banksters: and that includes the CHICOMS.
However, no one held a gun to the heads of the corrupt politicians and their greedy constitutents to ignore sound money policy. When you borrow from the MOB, you get more than debt.
And it was done purposelly.
From the perspective of the middle class...a capitalist talks you out of your dollars, while the government just takes your dollars without even a hello and gives it to their political cronies.
Both scenarios leave you just a little bit poorer. Only one gives you even a chance to keep your money without threat.
A middle class liberal (see "a fool and his money are soon departed") cannot detect this monumental distinction and it threatens his very freedom. This lack of insight is shrinking the middle class and making large numbers of life long, poorer, indoctrinated liberals out of average Americans.
Anyway...I no longer waste much time trying to figure out liberals. They have already screwed the country into the ground. Sadly, recovery may not happen in our lifetime....the socialist legislation just from this past year alone is incomprehensible and is so massive will never be erased and likely will barely be dented for many years to come. Anyone trying to make an honest living is likely a criminal according to our new "laws"....
I have lived in both the Dallas and Philly suburbs. Texas has limits on how much property taxes can rise. In Pennsylvania, the sky's the limit.
Don’t forget the Union of Soviet Socialist Bolder (CO)
In a free society they would fail and take their dupes and followers down with them. In a socialized society, with each of us chained by the power of the state, they harness that for their own wealth, and transmit losses away from them( let no opportunity go to waste ) and to us.
By and large, any politician or government actor is a liar, and a thief unless long proved otherwise.