Category: Unfunded Liabilities

Cities need reform, not bailouts

Posted on by liberty530

Here’s some excerpts from the great article, “Cities need reform, not bailouts”

The catastrophe for cities wasn’t created in the past few weeks….Our key point is that, in the years leading up to economic lockdown, these and other California officials have rubber-stamped pay hikes and pension benefits that their supporters, the public employee unions, demanded of them. Their government finances were unaffordable long before this disaster. The shutdown has only sped up the process of insolvency.

Consider the shameful example of Fullerton’s streets. These potholed relics would embarrass any American city. Such blight is incomprehensible in high-tax, relatively high-income Orange County — incomprehensible unless you understand that its union-backed political class consistently approves higher pay and benefits for government workers that suck up every available dollar, crowding out essential services.

The solution? If you’re Foley and Fitzgerald, first blame the virus for your predicament. Second, find someone to bail you out of your self-inflicted problems.

The authors go on to recommend chapter 9 bankruptcy.

Unlike California state judges, federal bankruptcy judges have shown a remarkable willingness to unwind the disastrous pensions that created havoc in city finances long before this current crisis.

That, of course, would require Foley and Fitzgerald to turn on the union leaders who financed their political campaigns in the expectation of a payback. Doing requires courage.

Let’s see if these officials have the heart to match their bold claim that they’re ready to fight for their communities.

Read the article in its entirety here

Cities need reform, not bailouts: Jim Righeimer and Bruce Whitaker

It looks like Chapter 9 could be the only way to shed the completely unsustainable pension and post-employment benefit liabilities Chico has. Here’s a great interview that offers solutions to this criminal situation including chapter 9 and also adopting reforms implemented in Wisconsin.

The impact of coronavirus on California pensions

But I can guarantee you this will never happen in Chico because there is no one on the Chico City Council with the courage to stand up to the special interests. And anyone who did would never get elected. That’s the kind of community you live in, folks.

But you can vote and campaign against their sales tax increase! DON’T LET THEM TAKE EVEN MORE OF YOUR MONEY!

Sales Tax Increase Necessary to Save Bureaucrats’ Multi-Million Dollar Pensions

Posted on by liberty530

While your retirement investments implode in what is shaping up to be the worst economic downturn since the Great Depression, city bureaucrats expect YOU to pay higher taxes in order to save their multi-million dollar pensions.

Over the years tens of millions of dollars that should have gone for roads, infrastructure and other necessities has been siphoned off to CalPERS in a futile attempt to fund ridiculous and unaffordable pensions.

Recently the city experienced a surplus in excess of $3 million. What did they do with the money? They didn’t spend a penny of it on the roads and instead shipped $400,000 of it off to CalPERS for pensions. (See https://chicotaxpayers.com/2020/03/15/time-for-true-pension-reform/ ) This is ON TOP of the money they already sent to CalPERS for the fiscal year!

In today’s ER city bureaucrat Constantin says the tax increase is “absolutely needed.” From the ER:

It’s likely, Constantin believes, that the city’s “most substantial needs” would be addressed.

It’s likely? He believes? Those are weasel words, folks. The ER goes on:

And yes, said Constantin, it could be used for pensions.

Hah! Ya think? OF COURSE IT WILL BE USED FOR PENSIONS!

If you want to read the rest of Constantin’s drivel you can read it here

City executive says proposed sales tax hike is absolutely needed

If voters are stupid enough to pass this tax increase it will only enable them to continue what they’ve been doing for many years.

You may never be able to afford to retire but the city council and Constantin believe you should pay MORE TAXES so city bureaucrats can retire as multi-millionaires! ARE YOU GOING TO LET THEM GET AWAY WITH THAT?

LET THE CITY COUNCIL KNOW YOU WILL NOT PASS THEIR SALES TAX INCREASE AND DEMAND THEY REFORM THE PENSIONS!

CARD Still Won’t Reform Its Unfunded Liabilities

Posted on by liberty530

While the markets are nosediving and already underfunded CalPERS is taking a big hit, CARD still refuses to reform its unaffordable pension and other post employment benefit liabilities. This despite the failure of Measure A.

Here’s what CARD board member and CalPERS six figure pension recipient Tom Lando had to say in today’s ER:

Thoughts vary on Measure A’s defeat

Even though we said — truthfully — that there’s a plan to pay off unfunded liabilities, people weren’t sure. Pensions are hanging over people’s heads.

Sure there is a plan. It is to do what they’ve been doing for years: divert millions of the taxpayer’s dollars that should go to maintenance, programs and new facilities to CalPERS so the pension gravy train can keep rolling. And that’s exactly what CARD will continue to do. And Measure A supporters blamed CARD’s unfunded liabilities on the state. That’s a lie. It wasn’t the state that approved CARD’s unaffordable employee compensation packages. It was CARD’s board.

And the ER article attributes the defeat of Measure A in part to “a robust anti-Measure A campaign.”

What a laugh. Yes, a handful of people wrote letters to the two local newspaper and a couple of people blogged against Measure A and there were some No on A signs but that was it. The ER article fails to mention that special interests poured over $64,000 to push through Measure A including $50,000 from the SIEU and $6,000 from board member and six figure CalPERS pension recipient Tom Lando.

CARD’s board and bureaucracy have no intention of ever reforming their unfunded liabilities. They expect taxpayers to continue to pay for unfordable pensions and other post employment benefits at the expense of park maintenance, programs and new facilities.

Had Measure A passed CARD’s board planned to spend two-thirds of the new tax money not on the parks and programs but on debt service. Of course CARD didn’t mention this in the ballot measure. Shouldn’t taxpayers have been told that before they passed a permanent and ever increasing tax?

And in addition to the over $64,000 from special interests that was raised, CARD spent 132,500 taxpayer dollars trying to get Measure A passed. THIS, THE DIVERSION OF MONEY TO CALPERS AND THE INTENTION OF SPENDING MOST OF THE NEW TAX ON DEBT SERVICE SHOWS WHAT TERRIBLE STEWARDS CARD AND ITS BUREAUCRACY ARE OF THE TAXPAYER’S MONEY.

CARD’s board and supporters deceived the public. Measure A was a fraud. The entire CARD board needs to go and Lando should be the first out the door, and the new board should get rid of CARD’s existing bureaucracy.