Posted on 08/15/2013 5:14:24 PM PDT by Oldeconomybuyer
Moody’s has put 15 California transit agencies on credit watch for a possible downgrade because of a decision by the Department of Labor to hold up federal transportation grants.
The Department of Labor, under its newly confirmed secretary, Thomas Perez, says pension reforms enacted by the state last year are in conflict with federal rules because they provide less generous pension formulas for new hires.
State agencies fear that if exemptions from the reforms are carved out for transit employees, other government workers will also demand exemptions, gutting California’s efforts to contain its growing pension obligations.
(Excerpt) Read more at blogs.marketwatch.com ...
I think Obama is using the Labor Department to weaken BART in its ongoing contract negotiations with the union.
Los Angeles has a transit agency?
Our Federal Gov’t is utterly insane.
If Moodys was honest, the down grade would have happened long ago
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.