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New York City is Running Out of Other People’s Money
Canada Free Press ^ | 05/06/2013 | Alan Joel

Posted on 05/12/2013 12:33:26 PM PDT by SeekAndFind

In a twist of irony, “Big Government” Bloomberg has admitted that NYC is at the edge of a fiscal precipice.

There is no practical ways to pay our workforce given the current environment, current tax structure, current other obligations we have more than what we have been doing, with the possible exception of dramatically raising taxes”.

Bloomberg points to public service unions as being among the biggest roadblocks to any meaningful fiscal health in the city.

Currently in NYC, most of the unions are refusing to negotiate contracts right now. This is completely legal. If the contract is not re-negotiated, the current terms continue. The unions are trying to hold out for more money until a new mayor is elected, in the hopes that a new mayor will cave to their demands. One thing Bloomberg wants—which is met with hostility—is to “force union workers to pay part of the health care costs”. Imagine that! “Unless we do something those expenses will bankrupt us,” Bloomberg said.

Additionally, when Bloomberg mentions “obligations”, he’s talking largely about the pension system.

Living in NYC, I am no fan of Bloomberg’s at all. I do want to give him a little (tiny) credit—he’s been sounding the alarm about this for the past few years. Even back in 2010, Bloomberg told CrainsNY that “city pension funds have set unrealistically high assumed rates of return on investments, at 8%, which may require spending more than has been budgeted for retirement benefits…The pension system itself provides defined benefits that can’t be reduced under guarantees the Legislature has placed in the state constitution. While it permits new, less-expensive benefit tiers for future employees, savings wouldn’t be realized for 10 or 15 years”

(Excerpt) Read more at canadafreepress.com ...


TOPICS:
KEYWORDS: budget; newyorkcity; nyc; pension

1 posted on 05/12/2013 12:33:26 PM PDT by SeekAndFind
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To: SeekAndFind

Wonder what they’ll cut first. Surveillance society and big brother, or important infrastructure like bridges, roads and transportation.


2 posted on 05/12/2013 12:34:30 PM PDT by Black Agnes
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To: SeekAndFind

No sympathy for the rich Socialist

Instead of trying to take guns away from all Americans... and Big Gulps away from New Yorkers.... he could have been addressing the union and municipal employee issues

How this Socialist got rich....is mind boggling


3 posted on 05/12/2013 12:38:28 PM PDT by SeminoleCounty (GOP - Greenlighting Obama's Programs)
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To: Black Agnes

Pretty easy solution to libs which come naturally: raise taxes. Bloomie will do it. They did it here in Socal.


4 posted on 05/12/2013 12:41:10 PM PDT by max americana (fired liberals in our company after the election, & laughed while they cried (true story))
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To: max americana

Bloomberg will give the next mayor of New York City a balanced budget to begin the new mayoralty, however, what is missing from the balance sheet could present the most trouble for his successor. Over 100 contracts with unionized city workers have not been renegotiated for years, and liabilities are accruing for the city.

Auto-renewing of the contracts have keep city services going, but workers have not received pay raises or other benefits due to a series of failed negotiations. Tight finances beginning with the 2008 economic downturn broke a cycle of regular pay increases, setting the scene for today’s growing conundrum, where Bloomberg is insisting the city does not have the money to pay for raises not awarded in years past.

The unions want retroactive pay raises—at an estimated cost of $7.8 billion. Labor wages, health benefits, and pensions for city workers as a whole represent 55 percent of the fiscal year 2014 budget.

Bloomberg has offered a raise going forward, albeit smaller than what the unions want, but he refuses to consider paying out billions in back pay. The fiscal year 2014 budget includes $265 million set aside in the city’s labor reserve for union raises of 1.25 percent.


5 posted on 05/12/2013 12:43:30 PM PDT by SeekAndFind
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To: SeekAndFind
Bloomberg points to public service unions as being among the biggest roadblocks to any meaningful fiscal health in the city.

The unions are the second biggest roadblocks. The first biggest are the politicians themselves.

6 posted on 05/12/2013 12:45:08 PM PDT by lowbridge
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To: SeekAndFind

“The pension system itself provides defined benefits that can’t be reduced under guarantees the Legislature has placed in the state constitution.”

Well....the state constitution is an “evolving document”, right liberals?


7 posted on 05/12/2013 12:45:49 PM PDT by Huskrrrr
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To: Black Agnes

8 posted on 05/12/2013 12:47:02 PM PDT by Hoodat (BENGHAZI - 4 KILLED, 2 MIA)
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To: SeekAndFind
In a twist of irony, “Big Government” Bloomberg has admitted that NYC is at the edge of a fiscal precipice.

NYC has a fiscal crisis every other year. It gets kicked down the road, the politicians pat themselves on the back for fixing the problem, a couple years later NYC has yet another fiscal crisis. Repeat. This has been going on for decades.

9 posted on 05/12/2013 12:47:04 PM PDT by lowbridge
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To: max americana

It is easy as falling off a log. Tax every finncial transaction made on computers located in the city or terminals located in the city $1


10 posted on 05/12/2013 12:49:36 PM PDT by bert ((K.E. N.P. N.C. +12 .....History is a process, not an event)
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Comment #11 Removed by Moderator

To: SeekAndFind

I suppose it would be unseemly to hop, in place, from foot to foot, while chanting “nyah, nyah, nyah, nyah, nyah.”


12 posted on 05/12/2013 12:54:45 PM PDT by RobinOfKingston (Democrats--the party of Evil. Republicans--the party of Stupid.)
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To: SeekAndFind

Good. Watching smug new yorkers flounder is entertainment. Bloomie should pitch in a few billion of his own cash.


13 posted on 05/12/2013 1:07:19 PM PDT by soycd
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To: All






FReepers post articles 24/7 to keep all of us informed!

And, It takes ALL of Us to Keep FR on the Air!

PLEASE MAKE YOUR DONATION TODAY!

14 posted on 05/12/2013 1:10:28 PM PDT by onyx (Please Support Free Republic - Donate Monthly! If you want on Sarah Palin's Ping List, Let Me know!)
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To: SeekAndFind

Legalization (and heavy taxation) of drugs, gambling and prostitution is the only way that the city and state can be saved!


15 posted on 05/12/2013 1:14:47 PM PDT by MrBambaLaMamba (Socialism is death and the will of Allah)
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To: MrBambaLaMamba

Tax all billionaire mayor’s estates at 100% and make it retroactive.


16 posted on 05/12/2013 1:26:53 PM PDT by urbanpovertylawcenter (where the law and poverty collide in an urban setting and sparks fly)
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To: lowbridge
NYC has a fiscal crisis every other year. It gets kicked down the road, the politicians pat themselves on the back for fixing the problem, a couple years later NYC has yet another fiscal crisis. Repeat. This has been going on for decades.

I predict the pattern will be repeated until some self-appointed genius cooks up the brilliant idea of demanding the nation bail out New York City.

17 posted on 05/12/2013 1:27:15 PM PDT by Standing Wolf
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To: SeekAndFind

NYC union pensions and benefits have just killed my husband’s job. Union employees also feel no need to actually do their jobs; they drink and backtalk their employers and bring frivolous law suits. They are part and parcel of what is killing America.


18 posted on 05/12/2013 1:30:46 PM PDT by miss marmelstein ( Richard Lives Yet!)
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To: bert

One must turn to the Ancient Byzantines for Tax solutions—They had a thing called a Sky Tax, a tax for walking around under the sky! The thing they need to Tax is poor people! If you want to end something—Tax it. Every welfare person should give 10 % to the city. pay it or move out.


19 posted on 05/12/2013 1:50:31 PM PDT by Forward the Light Brigade (Into the Jaws of H*ll)
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To: Black Agnes

If they want more taxes that will be the last straw. They can pay the unions,provide social services to illegals and go straight to hell without me.


20 posted on 05/12/2013 1:52:07 PM PDT by wiggen (The teacher card. When the racism card just won't work.)
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To: lowbridge

Pretty sure it’s been awhile. It certainly was true in the 70’s and 80’s.


21 posted on 05/12/2013 1:54:04 PM PDT by wiggen (The teacher card. When the racism card just won't work.)
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To: SeekAndFind

[[New York City is Running Out of Other People’s Money]]

Oh they’ll make PLENTY of money selling hte guns that they confiscate from law abiding citizens to mexican drug cartels- that shoudl keep them swimming in ill-gotten money for quite soem time


22 posted on 05/12/2013 2:30:47 PM PDT by CottShop (Scientific belief does not constitute scientific evidence, nor does it convey scientific knowledge)
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To: SeekAndFind

Doomberg’s a billionaire. If he had any conscience he’d kick in a few hundred million.


23 posted on 05/12/2013 2:36:50 PM PDT by E. Pluribus Unum (Islam is a religion of peace, and Moslems reserve the right to detonate anyone who says otherwise.)
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To: SeekAndFind
I can't imagine having the hubris to tell my boss I need a raise ... retroactive to 2008. They are waiting for the next mayor to make them all lottery winners.
24 posted on 05/12/2013 2:43:02 PM PDT by Pan_Yan (I believe in God. All else is dubious.)
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To: Pan_Yan

Easy solution. Tell the union they can keep their money or healthcare but not both.

When they go on strike, remove healthcare from their contract since Obamacare will take care of them.

When they squeal televise it.


25 posted on 05/12/2013 3:26:19 PM PDT by EQAndyBuzz (The reason we own guns is to protect ourselves from those wanting to take our guns from us.)
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To: SeekAndFind

Do what Obama does: It’s George Bush’s fault.


26 posted on 05/12/2013 3:55:45 PM PDT by SC_Pete
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To: SeekAndFind

             

27 posted on 05/12/2013 3:57:24 PM PDT by tomkat
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To: SeekAndFind

Was it Bloomberg, or that idiot governor who served between Spitzer and Cuomo who pretty much said “Good Riddance to Rush Limbaugh and his tax dollars?”

Mark


28 posted on 05/12/2013 6:39:52 PM PDT by MarkL (Do I really look like a guy with a plan?)
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To: wiggen

An example from 2010:

http://www.wnyc.org/articles/its-free-country/2010/sep/21/citys-looming-budget-crisis-post-recession-economy/


29 posted on 05/12/2013 8:04:02 PM PDT by lowbridge
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To: lowbridge

I read. It’s the same story as today though? Thats how these crises run. We used to have new ones on quite the regular basis!
Here’s the flaw. The jurisdiction be it city or state always plans to at least equal the prior years spending. Thats how we can have some idiot claim a spending slowdown is the same as a spending cut. Of course when reality slaps one in the face sometimes it’s necessary to spend less. Lets say however they didn’t do that and instead slowly accumulated wealth. well i for one wouldn’t want that. It’s better than the alternative but it means we’re over taxed and nobody wants that.


30 posted on 05/13/2013 2:42:14 AM PDT by wiggen (The teacher card. When the racism card just won't work.)
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To: SeekAndFind; All
First up to bat Detroit, NY is next....

http://www.detroitnews.com/article/20130510/OPINION03/305100346/1322/OPINION0301/EM-offer-glimpse-Detroit-s-perfect-storm-financial-ruin-

31 posted on 05/13/2013 3:35:29 AM PDT by taildragger (( Tighten the 5 point harness and brace for Impact Freepers, ya know it's coming..... ))
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