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The city of Los Angeles is half a billion in debt and drowning fast. The State CalPers is over $200 billion upside down, with unfunded liabilities.
Now we find out the city is $11.5 billion in debt due to their pension plan.
"On the other hand, the City, with its head in the sand, pretends the deficit is only $4.6 billion, a mere $7 billion difference. This is because the City relies on the Actuarial Value of its investments which is about $7 billion more than the market value of the same investments.
It is like the homeowner in denial with his house now worth only 60% of its value of several years ago, but insists that the house is worth 85% of its previous value. This liability does not reflect the adverse impact of the Early Retirement Incentive Plan for 2,400 employees that will increase the deficit by about $300 million, offset, in part, by contributions by City employees over the next 15 years."
So, for 15 years, the taxpayers of LA will have $300 million added to pay off this debt--owed because of sweetheart union deals with the owners of LA government--the unions.
More...
Now we find out the city is $11.5 billion in debt due to their pension plan.
"On the other hand, the City, with its head in the sand, pretends the deficit is only $4.6 billion, a mere $7 billion difference. This is because the City relies on the Actuarial Value of its investments which is about $7 billion more than the market value of the same investments.
It is like the homeowner in denial with his house now worth only 60% of its value of several years ago, but insists that the house is worth 85% of its previous value. This liability does not reflect the adverse impact of the Early Retirement Incentive Plan for 2,400 employees that will increase the deficit by about $300 million, offset, in part, by contributions by City employees over the next 15 years."
So, for 15 years, the taxpayers of LA will have $300 million added to pay off this debt--owed because of sweetheart union deals with the owners of LA government--the unions.
More...