Private corporations have done away with defined benefit retirement plans. They did so because the law governing corporations now says they have to be funded. Companies can no longer borrow from those funds and then go bankrupt. Cities should be required to do the same.
NJ is facing the same problems as Detroit, and seeing the same consequences: flight of the best & brightest workers and companies, deterioration of services as current revenue is drained by people who retired decades ago, and the out-of-sync high wages of public employees. We’ve laid off a lot of cops due to tax constraints (while teachers still get oversized raises each year), and the services are increasingly consumed by those contributing nothing (schools and police/fire protection being the most visible). Childless white taxpayers have little incentive to stay, simply being handed a bill for subsidizing the permanent urban underclass and illegal aliens.
It’s the same story everywhere: politicians agree to exorbitant employee benefits to get the public employee union votes. Then the politicians underfund the pensions to buy votes. See a pattern? CAREER POLITICIANS ARE THE PROBLEM.
We need term limits. We need the end of vote buying by career politicians. We need an end to career politicians. We need term limits.
Seen this coming for decade and all of sudden it’s a crisis?
Instead of saying GOVERNMENT retirees. Media can't bring themselves to admit who's to blame.
When you look at Social Security you see the pension plans.
Pensioners paid their share of the pension plan and they were funded.
Then the country started borrowing from SS and cities started borrowing from pension plans.
The interest rates fell and the pension plans started losing. As did Social Security, then like the Feds the cities started having to budget their plans.
Now who gets the blame. The Feds or the cities who ran the plans badly and borrowed from them or the pensioners.??
The Pensioners are called thieves for bargaining in good faith.
It seems I read over and over that many pension plans are not funded.
How were these plans originally set up and what happened between then and now that they are no longer viable. ?
I guess it's a step in the right direction...only applies to NEW city employees means they either need to really ramp up the attrition rate or actually make meaningful reforms like move ALL city employees now to such a plan
After all....a government job (city) pretty much means a forever job...
Cincinnati USED to be a very nice conservative city....then they elected Jerry Springer as mayor...who wrote a CHECk to a Prostitute while NEWLY married, and the stupid Democrats RE-ELECTED HIM, and it’s been down hill ever since.
All things in life have an expiration date, including America.
All that talk and nobody will MOUTH that it’s the Unions at fault..
Unions picking citys clean like vultures..
These people have been pretty much BRAIN WASHED...
The answer is quite easy to solve... too....
Declare WAR on the UNIONS.. they are indeed a disease..
and in most places a political disease.. and an economic disease..
First; dissolve ALL City and State employee unions..
Second; demand ALL federal employees in the State have a choice.. Union or not.. OR GET OUT..
Third; pass a State Law making Obamacare ILLEGAL..
The biggest problem with Detroit was not only the automobile industry leaving the city, but the shockingly corrupt governments under Coleman Young and Kwame Kilpatrick as Mayors of the city. Not to mention the undue influence of Manuel “Matty” Moroun, the owner of the Ambassador Bridger, who effectively blocked any attempts at improving the connections between Detroit and Windsor, ON until only very recently.
>>As the largest bankrupt city in America, Detroit has seen its population drop by more than half<<
Power of the cities over the rest of the state is diminished. What’s wrong with that? Who knows, states considered Communist strongholds will become more Conservative.
There should be a population limit of 1 million; no need for more in any city. When you reach the limit, start building another city.
There is the problem right there. The City should find where these people and companies are and make them pay their fair share.
So put all the government pension plan recipients on Obamacare and watch our money problems wash away...
I’d venture to say that if one were to research who the person or persons responsible for management of the pension funds, they’d find a level of opulence rarely seen in government. Salaries, perks, working environment, personal power, and very likely kickbacks from invested fund managers.
Management, or more likely mismanagement, of the funds were the primary cause for losses.
memphis isn’t far behind, they can’t even fund their own schools, which is why they gave up their charter to the county, threw all kind of monkey wrenches in to the works. All the small towns had county schools, while memphis had it’s own failure schools system. We are now at a 27 board member county wide board, and they want more reps. The entire plan is for memphis to run the entire county school system within 3 years. They did not count on the ‘tiny’ towns fighting back and demanding their own school systems. The state legislature backed them as it is now GOP controled as is the senate, we’d be in fairly good shape if not for the RINO governor halsam.
Milwaukee soon to follow
Local government employees shout that unions are the problem, when they know that lobby organizations for municipals and counties are much more of a problem. Unions are a problem but we don’t need to have administrators and special employees of podunk towns and counties scooping up hundreds of thousands of dollars each year and becoming ever more immune to the law.
Big government is the problem. It’s the regulations against new domestic competition.