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San Fran, already holding a $400 million deficit is going to have $109 million ADDED by only one category--pensions.
"On Tuesday, the city's independent actuaries set the employer contribution rate to the pension system at an eye-popping 18.1 percent of payroll. The city this year contributed 13.6 percent, and earlier projections had anticipated a 17 percent contribution in fiscal 2012.
Here's what that means: The city will siphon $433 million out of the general fund and into workers' pensions. That's a $109 million jump in one year, and a $26.3 million spike over even the worst predictions we could find. Remember that pension and benefits crisis SF Weekly wrote about? Turns out it wasn't a joke!"
A ballot measure to fix part of this problem was defeated in November--by unions wanting to bankrupt the city, while getting all the assets.
How bad is it going to get? "In addition to the coming 18.1 percent payout, the current projections foresee a 28.8 percent pension contribution by 2015 -- that'd be $688 million if payroll remains stagnant until then (and more if it grows, logically). Contributions will not drop below 20 percent until 2028."
That is impossible. Put San Fran on the bankruptcy watch--maybe we should start a pool. it is already bankrupt, when will they admit it?
1) in a month
2) in a year
3) never they will default on bonds and payroll but say recovery is around the corner
I vote for 3) How about you?
More...
"On Tuesday, the city's independent actuaries set the employer contribution rate to the pension system at an eye-popping 18.1 percent of payroll. The city this year contributed 13.6 percent, and earlier projections had anticipated a 17 percent contribution in fiscal 2012.
Here's what that means: The city will siphon $433 million out of the general fund and into workers' pensions. That's a $109 million jump in one year, and a $26.3 million spike over even the worst predictions we could find. Remember that pension and benefits crisis SF Weekly wrote about? Turns out it wasn't a joke!"
A ballot measure to fix part of this problem was defeated in November--by unions wanting to bankrupt the city, while getting all the assets.
How bad is it going to get? "In addition to the coming 18.1 percent payout, the current projections foresee a 28.8 percent pension contribution by 2015 -- that'd be $688 million if payroll remains stagnant until then (and more if it grows, logically). Contributions will not drop below 20 percent until 2028."
That is impossible. Put San Fran on the bankruptcy watch--maybe we should start a pool. it is already bankrupt, when will they admit it?
1) in a month
2) in a year
3) never they will default on bonds and payroll but say recovery is around the corner
I vote for 3) How about you?
More...