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Author: fleg9bo Big funky green star, 20000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 745852  
Subject: Dems + unions = disaster Date: 11/13/2012 1:45 PM
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http://www.cnbc.com/id/49802202

In bankrupt San Bernardino, a third of the city's 210,000 people live below the poverty line, making it the poorest city of its size in California. But a police lieutenant can retire in his 50s and take home $230,000 in one-time payouts on his last day, before settling in with a guaranteed $128,000-a-year pension. Forty-six retired city employees receive over $100,000 a year in pensions.

...the city's decades-long journey from prosperous, middle-class community to bankrupt, crime-ridden, foreclosure-blighted basket case is straightforward — and alarmingly similar to the path traveled by many municipalities around America's largest state. San Bernardino succumbed to a vicious circle of self-interests among city workers, local politicians and state pension overseers. Little by little, over many years, the salaries and retirement benefits of San Bernardino's city workers — and especially its police and firemen — grew richer and richer, even as the city lost its major employers and gradually got poorer and poorer.

Unions poured money into city council elections, and the city council poured money into union pay and pensions. The California Public Employees' Retirement System (Calpers), which manages pension plans for San Bernardino and many other cities, encouraged ever-sweeter benefits. Investment bankers sold clever bond deals to pay for them. Meanwhile, state law made it impossible to raise local property taxes and difficult to boost any other kind. No single deal or decision involving benefits and wages over the years killed the city. But cumulatively, they built a pension-fueled financial time-bomb that finally exploded.
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The entire states of CA and IL were already on this path. Now that Democrats rule both states virtually unopposed, this fate will befall them even sooner. Time to break out the ouzo.

--fleg
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Author: Jim2B Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 654951 of 745852
Subject: Re: Dems + unions = disaster Date: 11/13/2012 1:52 PM
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The entire states of CA and IL were already on this path. Now that Democrats rule both states virtually unopposed, this fate will befall them even sooner. Time to break out the ouzo.


Meanwhile in IN which has republican governor and super-majorities in both state houses:

The state brings in far MORE revenue than it is spending. This triggers a portion of state law that mandates a portion of that income be refunded to Indiana citizens. More than $1,000,000,000 will be refunded for this year.

Furthermore, the state is on track for a repeat performance for next year - mandating another 10 digit refund to Indiana citizens. Lawmakers are considering whether to decrease tax rates or increase spending in key areas. No decision has been made.

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Author: 2828 Big funky green star, 20000 posts Top Recommended Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 654952 of 745852
Subject: Re: Dems + unions = disaster Date: 11/13/2012 1:54 PM
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Meanwhile in IN which has republican governor and super-majorities in both state houses:

The state brings in far MORE revenue than it is spending. This triggers a portion of state law that mandates a portion of that income be refunded to Indiana citizens. More than $1,000,000,000 will be refunded for this year.

Furthermore, the state is on track for a repeat performance for next year - mandating another 10 digit refund to Indiana citizens. Lawmakers are considering whether to decrease tax rates or increase spending in key areas. No decision has been made.
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Are you trying to hurt me Jim <g>?

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Author: wolverine307 Big funky green star, 20000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 654958 of 745852
Subject: Re: Dems + unions = disaster Date: 11/13/2012 2:27 PM
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Everybody sing along.....

"Look for the union label..."

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Author: JoshRandall Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 655046 of 745852
Subject: Re: Dems + unions = disaster Date: 11/14/2012 7:28 AM
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Just give me my free sh$t, I don't care about deficits and stuff like that.

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Author: ariechert Big funky green star, 20000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 655050 of 745852
Subject: Re: Dems + unions = disaster Date: 11/14/2012 8:30 AM
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"Just give me my free sh$t, I don't care about deficits and stuff like that." - JoshRandall

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Me too. I'll be dead in ten to 15 years anyway. It's not like I got kids I got to worry about. When I'm dead I won't care.

Art

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