Are unfunded liabilities going to sink us?

by ji » Thu Aug 02, 2012 8:31 am

http://news.yahoo.com/san-bernardino-california-files-bankruptcy-over-1-billion-021606235--finance.html

"San Bernardino's city council voted on July 24 to adopt an emergency three-month fiscal plan that would suspend debt payments, freeze vacant jobs and quit paying into a retiree health fund while city staff produce a more detailed bankruptcy plan.

"The bankruptcy filing was just to get the protection in place, to kick the process off," a city spokesperson said.

In late July, San Bernardino reported it had $56 million in indebtedness payable from its general fund, the main budget, including payments on a $50 million pension bond. There is an additional $195 million in unfunded pension obligations, $61 million in unfunded retiree healthcare, and $40 million of workers compensation, compensated absenses and general liabilities."

by **westbroc90** » Thu Aug 02, 2012 8:35 am

The cracks are starting to show.

Once placid Canada has finally secured its last, wide-open border crossing.

by **advent** » Thu Aug 02, 2012 8:39 am

It could if you live in the city.

by **philibert63** » Thu Aug 02, 2012 8:54 am

No we are just going to default on them and ppl will suffer. Since liberals will ever discuss making rational cuts to these programs, we'll just wait till the whole thing blows up.

We have cities going down, USPS cant fund its pensions...give it 10-15 years. Its basically just the mandatory cuts we needed to make unfortunately we are going to do it the hard way instead of making relatively small changes now.

by **pete** » Thu Aug 02, 2012 8:59 am

it sounds huge, but it really isn't. our economy will be double the size in the next 12-15 years. That'll make those numbers look alot smaller. Something to compare them too.
The reason governments are reneging on their promises is because the private sector hasn't performed as well as expected when public sector contracts were laid out.
Hence, pubilc sector employees can expect greater modesty since they can't cry that they're underpaid compared to their private sector counterparts.

by **westbroc90** » Thu Aug 02, 2012 9:01 am

it sounds huge, but it really isn't. our economy will be double the size in the next 12-15 years. That'll make those numbers look alot smaller. Something to compare them too.
The reason governments are reneging on their promises is because the private sector hasn't performed as well as expected when public sector contracts were laid out.
Hence, pubilc sector employees can expect greater modesty since they can't cry that they're underpaid compared to their private sector counterparts.

It could if you live in the city.

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