Posted on 04/26/2012 2:03:17 PM PDT by SmithL
Although a new law to govern bankruptcy filings by local governments is just four months old, Democratic legislators and labor unions are lining up behind a major revision that local officials say would tilt the playing field.
. . .
The League of California Cities and other local government groups are crying foul, saying it undoes major portions of last year's compromise and gives unions a leg up in pre-bankruptcy negotiations. The City of Stockton is one opponent, telling the Assembly Local Government Committee in a letter that "these changes would dramatically increase the likelihood that mediations will be prolonged with no settlements reached."
Union officials have worried aloud that labor contracts and perhaps retirement benefits could be undone in a bankruptcy proceeding.
(Excerpt) Read more at blogs.sacbee.com ...
Let's see ... the Government entity takes in X dollars through their high tax rates (that drive out businesses and increases unemployment), yet they are obliged to spend near X dollars (or in excess of X dollars) to fund previously negotiated (negotiated by scoundrels and thieves... but negotiated and accepted) retirement benefits...
It does not take higher math to figure this one out. The unions want to increase the tax rate even higher (not only has the golden goose already been killed, they want to keep beating it with a club), and when that fails, devise other ways to confiscate funds/property to fund a retirement benefit program that cannot possibly be met... The cowards we have elected need to make the tough decision and acknowledge that previously negotiated public worker retirement programs were negotiated in bad faith (no one caring that the money was not going to be available when massive numbers of government employees retired), and tear them up. They need to convert new employees to their own 401Ks, and try to manage the existing contracts to something that they can afford. There is no way a government can function with this albatross around their necks. The government needs to manage their budget in times of plenty, and times of leanness, and they cannot do so if they need to divert an ever increasing amount of their budget to pay people who no longer work. Quite a mess, and not helped any by our representatives in Sacramento who just want to keep kicking the can down the road.
The unions/government workers will eventually have to deal with the reality that there is not enough money to deliver on all that was promised to them. In their world of sugar plum fairies there is always enough money but in the real world there isn’t. Pass them a Kleenex.
It gets to the point that if we the citizens are raped in order to support the union pensions, we make the choice to leave the Country, State, or City. It’s much easier in the reverse order. Where there’s no city, there’s no city pensions, et al.
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