Anywhere one goes it's the same thing....
Posted on 02/05/2012 12:17:27 PM PST by SmithL
Contra Costa County's finances resemble those of a family that ran up astronomical credit card debts by spending beyond its means.
It's not a unique story. Local governments throughout the East Bay face similar problems. Contra Costa leaders deserve credit for starting to adjust their spending about five years ago, earlier than many other public agencies.
They began trimming employee salaries, reducing benefits and significantly cutting the size of the workforce. These were painful, but essential, cuts critical to bringing annual expenses in line with income. For next fiscal year, county officials feel confident they have a balanced budget that doesn't pull from reserves.
"It's important to recognize the significant progress that's been made," says Supervisor John Gioia of Richmond. "But walking forward we can still fall off a cliff if we have a misstep."
Moreover, while the budget will be balanced, it includes only minimal payments on the credit card debt. The liability, for employee pension and retiree health care benefits, totals a staggering $2.4 billion. That's roughly equal to five years of base salary for county workers. It works out to about $2,300 for each county resident.
So, while county officials feel understandably proud that they've balanced the budget, no one should pop Champagne corks. The county will be suffering a fiscal hangover for decades because of past excesses.
It's very important to understand the nature of this debt.
...To their credit, county leaders have aggressively attacked one part of the debt, retirement health benefits. By capping how much the county will pay, they have reduced the county's unfunded liability by more than half, leaving a balance of about $850 million. Much of that savings could be undermined by legal action filed by current retirees who now have to pay more for their health benefits.
(Excerpt) Read more at contracostatimes.com ...
There, fixed it.
Anywhere one goes it's the same thing....
I read where Rhode Island has a 6% annual pension escalator, some old folks who never made 50 grand are now getting over 100.
What I don’t understand is why the voters put up with inflated salaries, inflated benefits, and excess workers.
At some point even the liberals in California are going to say “enough is enough” and vote in referendums that drastically cut the size of their government.
There's no end to that kind of greed. It's fractional slavery by taxation, where the public serves the interests of those wealthy enough to manipulate the system, indentured by the cost of paying for our own jailors.
No, they're going to say "enough is enough" and demand that the federal government make good the shortfall.
If Obama is president, that's what will happen.
If a Republican is president, it's about 50-50 that it'll happen.
And where was the press when these “past excesses” were going on? Cheering the Dems and attacking anyone who wanted to cut benefits.
He ran this escalator quite rapidly. In the end if you had had $1, you'd need $10.
You track many of these pension programs back to the Carter years and that's where you'll find things getting out of hand.
As you undoubtedly recall there were sound reasons to vote for Ronald Reagan.
No, they're going to say “enough is enough” and demand that the federal government make good the shortfall.”
“If Obama is president, that's what will happen.
If a Republican is president, it's about 50-50 that it'll happen.”
You have that exactly right!
I say ki77 all the old folks, oh wait I think that is already in the works.
Rhode Island has recently passed a law revising benefits downward to such an extent that the current crop of pensioners could very well never see another COLA increase.
More about that here: http://www.businessweek.com/ap/financialnews/D9R2RBOG0.htm
When bond investors no longer hope that they will get their money back, the robbery paradigm will cease. Something to think about.
They need to place a large tax on Obama voters.
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