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Busted California Cities: Pension Liabilities

Written by Gary North on June 14, 2013

New accounting standards are being applied by Moody’s to cities. It turns out that the two biggest cities in California — Los Angeles and San Francisco — are way deeper in the hole than previously admitted.

But wait! There’s more!

San Jose will be downgraded. So will Inglewood (“The Hood”). So will Azusa.

The total unfunded liabilities for the state are now over $320 billion. That’s up from $128 billion. In one shot.

That’s billions.

Carl Sagan, where are you now that we need you?

I know. On YouTube.

Officials in these California cities did not return calls for comment. I can understand why not.

One retiree in the County of Solano pulls in nearly $371,000 a year in retiree pay. Nearly 12,200 government retirees get $100,000 a year, including 94 city retirees in Stockton.

A retired librarian in San Diego somehow gets a $234,000 annual pension. A Newport Beach lifeguard got to retire at age 51 with a $108,000 annual pension plus health-care benefits.

California is not alone.

“By standard accounting methods, some state pension funds will run out of assets within as little as five years,” the Senate report said. “When the states with the worst pension systems come knocking at Washington’s door for a bailout, it will ultimately be taxpayers in more prudent states who will pay for the recklessness of the negligent states.”

The new rules will force states and cities to ‘fess up. But they will force them to change.

Continue Reading on www.foxbusiness.com

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6 thoughts on “Busted California Cities: Pension Liabilities

  1. ncbill12 says:

    Nothing stops the administrator appointed by a federal bankruptcy judge from cutting that $371,000 pension down to $37,000.

  2. These people get ridicules amounts in retirement for little work that is not dangerous. Troops from our wars and disabled veterans average less than 10% of what this guy gets for a pension. That just shows how Unions have ruined this country with outrageous demands and politicians have given in knowing they are not going to be around when the piper comes to collect. The same is for Obamacare and all the illegal immigrants take jobs and tax payer dollars. These making the decisions will not be in power when things start really falling a part and will never be held accountable.

  3. Let California file bankruptcy! The Court will give them a budget and the State will have to live-by-it.

    Why should Texas taxpayers be made to pay for California State and Local retirees. California is a great example of what happens when libs run anything. They MUST have conservative money or they cannot survive. The only thing libs can do on their own is destroy whatever they touch.

  4. Let the Mixicans have the state and the Queers put a wall around it so they cant come to are states after it gos under I hope God pulls them uner water

  5. That's why there is some much "community activism" in California over so-called gay rights. The stink they have stirred up by promoting same sex marriage is partially designed to draw away attention from the fact that the ship is sinking –but it will only do so long enough for the captain, mate, bo'sun, and ship's carpenter to get the ship's safe into a longboat and shove off.

  6. It’s like they all know a meteor is scheduled to hit in 5 yrs, and it’s time to par-tee!