The city of San Bernardino has stopped making its required payments to CalPERS since filing for bankruptcy and owes the big pension fund $5.3 million, CalPERS said today.
San Bernardino's missed payments creates a bizarre new twist in the unfolding political and financial drama over cities' pension obligations.
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This is not some small city like Vallejo. This is not a special circumstance like Mammoth Lakes. This is not massive corruption like Oxnard or Los Angeles. This is the future for most cities and major agencies. Promises were made that growth and demographics cannot support. Cue Meredith.
7 comments:
And yet return assumptions are still, what, 8%+?
Think of the impact on the CA election -- especially props 30 & 32 -- should they change their assumptions to 3% or less?
CalPERS has "reduced" their imputed compounded annual return to 7.5%. Any shortfalls are assumed to be made up by increased municipal contributions. Total taxpayer rip off.
http://articles.latimes.com/2012/jul/16/business/la-fi-mo-calpers-returns-paltry-20120716
1% last year meaning they need 16% this year.
Yeah, but until they change their assumptions the taxpayers/voters remain unaware.
What can't be paid, won't be paid.And Dawg, LL asked me to cajole you back to HCN.Not my style, but I thought Id let you know that you are missed...by some.
I'm sure without a focus for their abuse they are missing me. Notice how many new friends some have them have made in such a short time?
Anyway, municipalities are in far worse condition than is let on. they have basically run out of orrifices in which to ram the blood funnel. If prop 30 loses a lot more tide will roll out and at least a dozen will prophylactically declare bk.
Any good polling data on where 30 & 32 stand at present?
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