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.
Carl Sagan, where are you now that we need you?
I know. On YouTube.
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.