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Pension plans are going to kill most California cities by 2015. San Diego is bankrupt--and might soon admit it, due to pension expense. San Fran, by 2014 will be spending 25% of its revenues on pension. Los Angeles, by 2015 will be paying 30% its revenues on pensions.
"This based in part on a number of factors, including the bill for retirement health care coming up, where we have a $65 million unfunded liability as well as the increases in PERS costs that will start coming due.
It is alarming because we have acted like we have more time than we do. We just signed away three year MOUs that put off the serious reforms until now 2012-13 at the earliest. That means we would have the fix the problems in one fell swoop, in a single MOU."
The long time radical city of Davis is coming to a collapse. Davis will be forced to file bankruptcy, like San Diego, in order to save itself from unions created pension plans.
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"This based in part on a number of factors, including the bill for retirement health care coming up, where we have a $65 million unfunded liability as well as the increases in PERS costs that will start coming due.
It is alarming because we have acted like we have more time than we do. We just signed away three year MOUs that put off the serious reforms until now 2012-13 at the earliest. That means we would have the fix the problems in one fell swoop, in a single MOU."
The long time radical city of Davis is coming to a collapse. Davis will be forced to file bankruptcy, like San Diego, in order to save itself from unions created pension plans.
More...