Posted on 11/23/2016 9:54:13 AM PST by Lorianne
In testimony to state regulators, Dallas reported that a Police & Fire pensions request for $1.1 billion would wipe out the city’s entire general fund.
Picture the next major American city to go bankrupt. What springs to mind? Probably not the swagger and sprawl of Dallas.
But there was Dallas’s mayor, Michael S. Rawlings, testifying this month to a state oversight board that his city appeared to be “walking into the fan blades” of municipal bankruptcy.
“It is horribly ironic,” he said.
Indeed. Dallas has the fastest economic growth of the nation’s 13 largest cities. Its streets hum with supersize cars and its skyline bristles with cranes. Its mayor is a former chief executive of Pizza Hut. Hundreds of multinational corporations have chosen Dallas for their headquarters, most recently Jacobs Engineering, which is moving to low-tax Texas from pricey Pasadena, Calif.
But under its glittering surface, Dallas has a problem that could bring it to its knees, and that could be an early test of America’s postelection commitment to safe streets and tax relief: The city’s pension fund for its police officers and firefighters is near collapse and seeking an immense bailout.
Over six recent weeks, panicked Dallas retirees have pulled $220 million out of the fund. What set off the run was a recommendation in July that the retirees no longer be allowed to take out big blocks of money. Even before that, though, there were reports that the fund’s investments — some placed in highly risky and speculative ventures — were worth less than previously stated.
What is happening in Dallas is an extreme example of what’s happening in many other places around the country. Elected officials promised workers solid pensions years ago, on the basis of wishful thinking rather than realistic expectations. Dallas’s troubles have become more urgent because its plan rules let some retirees take big withdrawals.
Now, the Dallas Police and Fire Pension System has asked the city for a one-time infusion of $1.1 billion, an amount roughly equal to Dallas’s entire general fund budget but not even close to what the pension fund needs to be fully funded. Nothing would be left for fighting endemic poverty south of the Trinity River, for public libraries, or for giving current police officers and firefighters a raise.
Dallas run by Democrats. No surprise here.
Seem to remember a story about the city of Houston and their public employees opting out of the SS system and investing instead. As I recall, the employees did YUGELY better and would all be very well off when it came time to retire. Way better than a SS check. Anybody recall that?
One of the major problems was right there in the article. Californian companies are moving to Texas’ major cities and in turn bringing and luring their liberal employees with them. This has turned four major cities in Texas (Austin, Dallas, San Antonio, and Houston) into liberal cesspools.
Dallas county voted for Hillary.
Ironic? You mean predictable.
And it's not just cops and firefighters who are getting these lucrative pensions. It's anyone who works for government.
Its simple. They need to change the pensions first, or they get no help. No reason at all to help them if they aren’t going to fix it first. Pensions in general are all time bombs. They should all be wiped out. If an employer wants to provide something, they can put money into a private annuity for the employees. Those are priced correctly almost all the time.
IIRC, the city you’re thinking of is Galveston.
Famous last words from a Texas Legislator:
“Some of the benefits guaranteed, were probably never realistic. It was good while it lasted. We’ve got some serious financial problems.”
“Californian companies are moving to Texas’ major cities and in turn bringing and luring their liberal employees with them.”
That’s the ticket, you’re just like the DemoRATs, always looking for someone to blame for your screwup! The State Legislator quoted in the article has been in your legislature since 1973! And I don’t think all your cops and fire fighters came there from California. Why can’t you just own up to your own failures? Face it, big cities the country over are run by the RATs (and more often than not, Black RATs), and they are hell-bent on giving away the store. It doesn’t make one didly-damned difference whether those cities are in California or Texas!
Thanks.
I think you mean the city of Galveston. That is what they did.Nit sure about Houston
Thanks. It was a while ago that I read it.
has turned four major cities in Texas (Austin, Dallas, San Antonio, and Houston) into liberal cesspools.”
All sanctuary cities, governed by Democrat mayors. Suspect we should add the Valley and El Paso to that list. Was in a cell phone store yesterday afternoon. It was jammed. Never heard so many different languages or seen so much non-Texan attire in one small place in my life - looked like only two of us had English as a first language, and that’s just a microcosm of Houston and the surrounding areas.
From what little I've heard on the radio, the Dallas Police pension fund invested in a high-rise called Museum Tower. It began from a $10 million stake that morphed into the plan controlling 100% of the $200 million property. Current occupancy rates could not be located, but they were reportedly 23% in 2014.
A lot of cities opt out of social security for a public retirement system. Texas has several.
Yes. There is always the diametrical split between Dallas and Tarrant (Fort Worth) Counties. Hence, the vicious rivalry.
Dallas Co. also voted for Obama twice while Tarrant went with the Republican candidates.
Not certain if the City of Galveston was a participant, but I know that employees of the Counties of Galveston and Brazoria were eligible. Those who opted out of SocSec and managed their own retirement plans are set for life. Of course...the FedGov made that sort of arrangement illegal once it became obvious how poor the results were for those unfortunates who stuck with Social Security.
Shame because I am from Dallas, and it was once a great conservative, business oriented city.
Now it’s run by a numale named Mike Rawlings and a queer Sheriff that can’t even qualify to carry a gun.
I lived downtown in a loft as recently as summer of 2015. The culture of the town was definitely being taken over by west coast numales.
If you’re a young college/professional school grad with a few $$$ in your pocket, downtown Ft. Worth is a great place to live and work.
I was a downtown Dallas guy though, just sayin’.
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