The reform of failed socialism invariably means more socialism.
Posted on 08/06/2013 11:37:05 PM PDT by Olog-hai
Think Motown is the only major U.S. city in a boatload of financial trouble? Think again. Detroit’s bankruptcy filing sent shivers down the spine of municipal bondholders, government employees, and big-city urban residents all over the country. That’s because many of the 61 largest U.S. cities are plagued with the same kinds of retirement legacy costs that sent Detroit into Chapter 9 bankruptcy this summer.
These cities have amassed $118 billion in unfunded healthcare liabilities. These are legal promises to pay healthcare benefits to municipal workers beyond the employee contributions to finance those funds. This is a giant fiscal sinkhole—and because of defined benefit plans, the hole keeps getting deeper.
Detroit may be the largest city in American history to go bankrupt, but it is not alone. The city raced to the financial insolvency finish line before anyone else in its class. Keep an eye on “too big to fail” cities like Chicago, Philadelphia, and New York. …
(Excerpt) Read more at newsmax.com ...
didn’t Compton already disband its police force?
Yes, almost thirteen years ago. The city council contracts with the LA County Sheriff’s Department for police service.
I am sure they do a great job.
Only TWO are in the South. Maybe the rebels will have the last laugh on the Yankees. Save your Confederate money, it’s worth more than a Yankee dollar. Timeout is coming to an end.
And to the NSA trolls, FU.
Let’s throw New York on that list, just for the heck of it.
Jefferson County, Alabama probably ought to be next on the list but is absolutely dedicated to the idea of taxing all who work in Birmingham or the county....while they live in another county. Alabama has a law that says you can’t tax via that method.
Probably eighty percent the wage-earners who make more than $45k a year in Birmingham....live the county over, and refuse to be part of the Jefferson-experience (corruption and comical politics). Unless the state makes the change to the law....I’d say they will be fully bankrupt by the end of 2015. As for the state taking over the county? Most from Alabama would say it’s physically impossible for that to occur with the current state constitution.
The reform of failed socialism invariably means more socialism.
What’s an NSA troll? Just curious.
ping
Set the local tax rate at 100%.. problem solved. (Liberal mindset)
“”Here is my worry list, based on bond ratings and other data, of the top 20 cities to watch for financial troubles in the wake of the Detroit story:
1. Compton, Calif.
Compton has teetered on the brink of bankruptcy after it accrued a general-fund deficit of more than $40 million by borrowing from other funds, depleting what had been a $22 million reserve.
2. East Greenbush, N.Y.
A New York state audit concluded that years of fiscal mismanagement — including questionable employment contracts and illegal payments to town officials — left East Greenbush more than $2 million in debt.
3. Fresno, Calif.
Fresno had the ratings of its lease-revenue bonds downgraded to junk-level by Moody’s, which also downgraded its convention center and pension obligation bonds due to the city’s “exceedingly weak financial position.”
4. Gulf County, Fla.
Fitch Ratings warned that Gulf County’s predominately rural economy is “narrowly focused,” with income levels one-quarter below national averages and economic indicators for the county also comparing unfavorably to national averages.
5. Harrisburg, Pa.
Harrisburg is at least $345 million in debt, thanks largely to municipal bonds it guaranteed in order to finance upgrades to its problematic waste-to-energy trash incinerator.
6. Irvington, N.J.
7. Jefferson County, Ala.
8. Menasha, Wis.
9. Newburgh, N.Y.
10. Oakland, Calif.
11. Philadelphia School District, Pa.
12. Pontiac, Mich.
13. Providence, R.I.
14. Riverdale, Ill.
15. Salem, N.J.
16. Strafford County, N.H.
17. Taylor, Mich.
18. Vadnais Heights, Minn.
19. Wenatchee, Wash.
20. Woonsocket, R.I.””
Middlesex County, Massachusetts, whose government predated the Revolutionary War, went bankrupt in the 1990’s. It contains Cambridge and Lowell, but mostly well-to-do suburbs, including Lexington and Concord. Counties are relatively minor entities in Massachusetts, and have no independent taxing power, they subsist on money from the State. Basically, they overspent their allowance. The State shutdown the county government, and it is now run directly by the State. The only real function the county government has is running the sheriff’s office, jails, and courts. The problem was too many payroll patriots “on the county”.
Interesting.
Florida is technically not the South. I consider Virginia a Northern state also.
When myvhusband worked in Birmingham, we lived in St. Clair Co. The taxes in Birmingham are ridiculously high....sewer, water, tags, etc. Alabama also has a couple of sales tax free weekends for back to school, emergency equipment and Jefferson County will not participate. Then cry when they lose the business to other counties. The county was once rich and like Detroit in the 70’s elected their first Democrat and have steadily gone downhill.
From the article: “Oakland is trying to get out of a Goldman Sachs-brokered interest rate swap that is costing it $4 million a year. According to a recent city audit, Oakland has lost $250 million from a 1997 pension obligation bond sale and subsequent investment strategy.”
Yes the boys at Goldman Sachs. Bailed out by the US taxpayer in 2008 they seem to get their fingers into every pot including a virtual monopoly on sales of US Treasury debt. It is true these cities made bad decisions but they were aided and abetted by the New York banking cartel of “too big to fail banks” that are nothing more than crony capitalist loan sharks and speculators allied with big government to loot and plunder the citizens of this nation. Bring back Glass Steagall to separate retail banking from speculative banking and cut these big banks down to a size where they won’t be too big to fail.
One way to get this economy rolling again is to break up the Wall Street banking trust and the economic power of the New York Federal Reserve branch which has a stranglehold on the capital available to invest in this country. Let regional banking centers evolve to compete with New York. Dispersing the control of capital around the country will also disperse the political control over the nation by northeastern progressives. Money is the source of power and the center of money in the USA has been New York and Boston since the founding.
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