US Cities That Could Face Bankruptcy In 2011

[Kanalua]

As a proud resident of Honolulu (both the City and the County - all of Oahu (the island) is one county - the City and County of Honolulu), I can say that, yeah...Honolulu belongs on that list. And how do we plan on pulling ourselves out of the fiscal funk (besides more taxes, of course)? Building a HUGELY expensive light rail system!!! The City raised the general excise tax here (yes, not a sales tax, but GET on every transaction that occurs here) a few years ago, and recent projections by the state show that the GET increase will not even cover 1/3 of the rising costs to build the rail, and will cost an additional $1.7 Billion more than expected at current projections.

 

[Slew Foot]

2. The city promised to much in the way of pensions for former workers.

This is waht is going to ruin America, huge unfunded pension liabilities.

 

[MovingTarget]

Here is an example in my neck of the woods: http://www.nytimes.com/2010/12/23/business/23prichard.html?_r=1&partner=rss&emc=rss

Many American cities will soon follow suit. This is what they have in store.

 

[Ronstang]

This is waht is going to ruin America, huge unfunded pension liabilities.

It's not going to ruin America it is going to ruin millions of spoiled government workers' lives. There is going to be fighting, screaming, yelling, and threats but in the end many of these pensions are going to be slashed. There is simply no other way. The only people they have to blame are the same Democrat lawmakers that promised them the money in the first place.

There are lots of people on pensions from private industry that have been slashed to 20% of what they were promised in some cases. What makes anyone think the government employees are immune? They cannot keep raising taxes, the system will simply collapse. My advice to any government employee that thinks this won't happen is to start planning for it yesterday...the writing has been on the wall for some time yet the blind never see.

 

[shortylickens]

It's not going to ruin America it is going to ruin millions of spoiled government workers' lives. There is going to be fighting, screaming, yelling, and threats but in the end many of these pensions are going to be slashed. There is simply no other way. The only people they have to blame are the same Democrat lawmakers that promised them the money in the first place.

There are lots of people on pensions from private industry that have been slashed to 20% of what they were promised in some cases. What makes anyone think the government employees are immune? They cannot keep raising taxes, the system will simply collapse. My advice to any government employee that thinks this won't happen is to start planning for it yesterday...the writing has been on the wall for some time yet the blind never see.

I dont think every govt. worker is spoiled. And thats the only way your statistic of "millions" would work.
In fact I think most of them are very hardworking and dont get paid enough for all the shit they have to endure. The benefits outside the salary are what make the jobs worthwhile. The problem is like anything else thats high profile, the handful of rotten apples get most of the attention cuz they're the ones who stick out.

 

[Fingolfin269]

The great thing about the inbred conservatives is that they can pray and their budget balances itself....

Well this does have some bit of truth to it considering I don't see too many cities full of 'inbred conservatives' on the list of cities potentially facing bankruptcy in 2011.

 

[MovingTarget]

Well this does have some bit of truth to it considering I don't see too many cities full of 'inbred conservatives' on the list of cities potentially facing bankruptcy in 2011.

Don't have to worry about paying pensions for city workers when you live in unincorporated areas.

 

[Greenman]

This is waht is going to ruin America, huge unfunded pension liabilities.

Most city's are going to run up against this in the coming years, yet none seem willing to even admit it's a problem. I think this is going to be the next "bubble" to burst.

 

[Zargon]

Yet, in the mean time, you notice that good 'ol Detroit isn't on that list. Why? We've been lucky enough to have a couple decent mayors (Archer and now Dave Bing) who have managed to ignore the corruption and actually do the right thing and cut spending to match income.

Of course, there's a huge chunk of blue constituents that scream every time it happens because they don't understand cutting spending to balance your checkbook. That's why that same group is largely on the public dole...

LOL

dude.

detroit just announced its cutting trash/police/fire to 20% of the city.

I dont know how they didnt make the list. but detroit is totally fucked

 

[ShawnD1]

LOL

dude.

detroit just announced its cutting trash/police/fire to 20% of the city.

I dont know how they didnt make the list. but detroit is totally fucked

All detroit needs to do is execute criminals and break down all city employee unions. This would then slash the wage for cops/fire/garbage to minimum wage and the city would actually be able to pay bills for once

 

[Acanthus]

All detroit needs to do is execute criminals and break down all city employee unions. This would then slash the wage for cops/fire/garbage to minimum wage and the city would actually be able to pay bills for once

Yeah, lots of people ill endanger their lives for minimum wage.

At least their real estate is cheap

 

[Slew Foot]

It's not going to ruin America it is going to ruin millions of spoiled government workers' lives. There is going to be fighting, screaming, yelling, and threats but in the end many of these pensions are going to be slashed. There is simply no other way. The only people they have to blame are the same Democrat lawmakers that promised them the money in the first place.

There are lots of people on pensions from private industry that have been slashed to 20% of what they were promised in some cases. What makes anyone think the government employees are immune? They cannot keep raising taxes, the system will simply collapse. My advice to any government employee that thinks this won't happen is to start planning for it yesterday...the writing has been on the wall for some time yet the blind never see.

Not a chance, the government will get their (your) money. They get to make the laws, they dont care about America, only themselves.

 

[ShawnD1]

Yeah, lots of people ill endanger their lives for minimum wage.

Mexicans do it all the time. Get on a 2 story house with a steep roof and no guard rail or harness of any kind. A little trip could mean rolling off the roof and ending up in the hospital, but they still do it for less than minimum wage.

Detroit's unemployment rate is like 20% or something, but I think you could bring that down to 10% if there were mass executions. Every person caught breaking certain laws (ie stealing, robbery, selling drugs) would be executed immediately after being found guilty.

 

[Trianon]

It's not going to ruin America it is going to ruin millions of spoiled government workers' lives. There is going to be fighting, screaming, yelling, and threats but in the end many of these pensions are going to be slashed. There is simply no other way. The only people they have to blame are the same Democrat lawmakers that promised them the money in the first place.

There are lots of people on pensions from private industry that have been slashed to 20% of what they were promised in some cases. What makes anyone think the government employees are immune? They cannot keep raising taxes, the system will simply collapse. My advice to any government employee that thinks this won't happen is to start planning for it yesterday...the writing has been on the wall for some time yet the blind never see.

Strange thing is that "spidey" didn't chime in on this one.

 

[Trianon]

Not a chance, the government will get their (your) money. They get to make the laws, they dont care about America, only themselves.

Assuming there is money out there "to be gotten"... Jacking up already high taxes will drive people/businesses away in a jiffy.

 

[dmcowen674]

Here is an example in my neck of the woods: http://www.nytimes.com/2010/12/23/business/23prichard.html?_r=1&partner=rss&emc=rss

Many American cities will soon follow suit. This is what they have in store.

This is the Republican America everyone is happy to have.

What is the kill rate that these Republicans are knocking off retired workers?

PRICHARD, Ala. — This struggling small city on the outskirts of Mobile was warned for years that if it did nothing, its pension fund would run out of money by 2009. Right on schedule, its fund ran dry.

Then Prichard did something that pension experts say they have never seen before: it stopped sending monthly pension checks to its 150 retired workers, breaking a state law requiring it to pay its promised retirement benefits in full.


Since then, Nettie Banks, 68, a retired Prichard police and fire dispatcher, has filed for bankruptcy. Alfred Arnold, a 66-year-old retired fire captain, has gone back to work as a shopping mall security guard to try to keep his house. Eddie Ragland, 59, a retired police captain, accepted help from colleagues, bake sales and collection jars after he was shot by a robber, leaving him badly wounded and unable to get to his new job as a police officer at the regional airport.

Far worse was the retired fire marshal who died in June. Like many of the others, he was too young to collect Social Security. “When they found him, he had no electricity and no running water in his house,” said David Anders, 58, a retired district fire chief.

Mary Berg, 61, a former assistant city clerk whose mother was once the city’s zookeeper, read them the names of 11 retirees who had died since the checks stopped coming.

“Prichard is the future,” said Michael Aguirre, the former San Diego city attorney, who has called for San Diego to declare bankruptcy and restructure its own outsize pension obligations.

 

[ShawnD1]

This is the Republican America everyone is happy to have.


(story)
Since then, Nettie Banks, 68, a retired Prichard police and fire dispatcher, has filed for bankruptcy. Alfred Arnold, a 66-year-old retired fire captain, has gone back to work as a shopping mall security guard to try to keep his house. Eddie Ragland, 59, a retired police captain, accepted help from colleagues, bake sales and collection jars after he was shot by a robber, leaving him badly wounded and unable to get to his new job as a police officer at the regional airport.

Far worse was the retired fire marshal who died in June. Like many of the others, he was too young to collect Social Security. “When they found him, he had no electricity and no running water in his house,” said David Anders, 58, a retired district fire chief.

Mary Berg, 61, a former assistant city clerk whose mother was once the city’s zookeeper, read them the names of 11 retirees who had died since the checks stopped coming.

“Prichard is the future,” said Michael Aguirre, the former San Diego city attorney, who has called for San Diego to declare bankruptcy and restructure its own outsize pension obligations.

Lazy pieces of shit. Official federal retirement age is 65. That one bastard is only 58 and he's retired. 59? 61? Are these people just profoundly retarded or something? Hey look at how smart I am; I'm going to retire early even though I haven't saved a fucking penny my whole life! W00t I R SO SMRT.

There are very few valid reasons to stop working. 1 - you are physically not capable of working due to illness/cancer/other. 2 - you saved a lot of money and can afford to retire. These people definitely do not fit criterion 2 and I doubt they fit 1 either.

 

[Fingolfin269]

Lazy pieces of shit. Official federal retirement age is 65. That one bastard is only 58 and he's retired. 59? 61? Are these people just profoundly retarded or something? Hey look at how smart I am; I'm going to retire early even though I haven't saved a fucking penny my whole life! W00t I R SO SMRT.

There are very few valid reasons to stop working. 1 - you are physically not capable of working due to illness/cancer/other. 2 - you saved a lot of money and can afford to retire. These people definitely do not fit criterion 2 and I doubt they fit 1 either.

This. I am trying my best to ensure that I do not have to work until I'm dead but I was also brought up to take care of myself and assume no one else would be there to help me... even if they say they will. Is 60 even old any more? Will it be 'old' in 30 years?

 

[ShawnD1]

Is 60 even old any more? Will it be 'old' in 30 years?

Nope. 60 is still pretty young. My mom is in her 60s and she can still water ski better than most people half her age.
A few of my coworkers are in their 60s and they manage to get there earlier than me, work the whole day without bitching, and come in every single day. I don't really see anything slowing them down. I think my uncle is about 68 or so and he's still working as a supervisor on an oil rig. That same uncle also rides horses, fixes tractors, and pretends to be a farmer.

 

[Greenman]

This is the Republican America everyone is happy to have.

What is the kill rate that these Republicans are knocking off retired workers?

PRICHARD, Ala. — This struggling small city on the outskirts of Mobile was warned for years that if it did nothing, its pension fund would run out of money by 2009. Right on schedule, its fund ran dry.

Then Prichard did something that pension experts say they have never seen before: it stopped sending monthly pension checks to its 150 retired workers, breaking a state law requiring it to pay its promised retirement benefits in full.


Since then, Nettie Banks, 68, a retired Prichard police and fire dispatcher, has filed for bankruptcy. Alfred Arnold, a 66-year-old retired fire captain, has gone back to work as a shopping mall security guard to try to keep his house. Eddie Ragland, 59, a retired police captain, accepted help from colleagues, bake sales and collection jars after he was shot by a robber, leaving him badly wounded and unable to get to his new job as a police officer at the regional airport.

Far worse was the retired fire marshal who died in June. Like many of the others, he was too young to collect Social Security. “When they found him, he had no electricity and no running water in his house,” said David Anders, 58, a retired district fire chief.

Mary Berg, 61, a former assistant city clerk whose mother was once the city’s zookeeper, read them the names of 11 retirees who had died since the checks stopped coming.

“Prichard is the future,” said Michael Aguirre, the former San Diego city attorney, who has called for San Diego to declare bankruptcy and restructure its own outsize pension obligations.

I'm not sure what point you're trying to make. No one wants this to happen, but it's going to come down to a simple question, how many retired people are you going to support Dave? The money has to come from somewhere, we know most city's don't have it, the states are in nearly as bad of shape, and the feds are 17 trillion in the hole right now. Who's going to write the checks every month? Will you be willing to give up sixty or seventy percent of your money to pay people not to work? Can you afford it? I know I sure as hell can't.
This is a time bomb ticking away, everyone knows it's going to blow up, but know one wants to try and stop it, or even control the damage.

 

[ShawnD1]

I'm not sure what point you're trying to make. No one wants this to happen, but it's going to come down to a simple question, how many retired people are you going to support Dave? The money has to come from somewhere, we know most city's don't have it, the states are in nearly as bad of shape, and the feds are 17 trillion in the hole right now. Who's going to write the checks every month? Will you be willing to give up sixty or seventy percent of your money to pay people not to work? Can you afford it? I know I sure as hell can't.
This is a time bomb ticking away, everyone knows it's going to blow up, but know one wants to try and stop it, or even control the damage.

The next question is whether you would rather spend the money on people who expect to not work for 20 years before dying or would you rather spend that money on widening the roads, expanding social service, paying debts, or various other projects.

 

[Jhhnn]

I'm not sure what point you're trying to make. No one wants this to happen, but it's going to come down to a simple question, how many retired people are you going to support Dave? The money has to come from somewhere, we know most city's don't have it, the states are in nearly as bad of shape, and the feds are 17 trillion in the hole right now. Who's going to write the checks every month? Will you be willing to give up sixty or seventy percent of your money to pay people not to work? Can you afford it? I know I sure as hell can't.
This is a time bomb ticking away, everyone knows it's going to blow up, but know one wants to try and stop it, or even control the damage.

One of the most overlooked aspects of pension problems is dependence on market investments over time to meet obligations.

That's where much of the money that disappeared into the hands of bankstas via the MBS flimflam came from in the first place- pension plan trusts, money that participants have been setting aside for decades to "grow" via investment.

It's not that people didn't plan ahead or do the right thing- it's that many have been ripped off, plain and simple. That's true wrt all retirement vehicles- 401k's, IRA's, you name it.

Just think of it as one of the joys of a self-regulated financial sector... an unencumbered tool of the lootocracy.

 

[Svnla]

This is the Republican America everyone is happy to have.

What is the kill rate that these Republicans are knocking off retired workers?.....<snip>....

Republicans you said? From the same story of yahoo news = http://finance.yahoo.com/news/Alaba...on-nytimes-93215960.html?x=0#mwpphu-container

The city&#8217;s rapid decline began in the 1970s. The growth of other suburbs, white flight and then middle-class flight all took their tolls, and the city&#8217;s population shrank by 40 percent to about 27,000 today, from its peak of 45,000. As people left, the city&#8217;s tax base dwindled.

Yup, Republicans did ALL that...way back from 1970's, put the guns into people heads and made them midle classers move to the surbs against their will . Population went down 40&#37;...less people = less taxes = less money for pension.

For those that really want to know more about the story. Sort the comments section below the article by "Highest Rated" and read the comment from Ep and others below him. Look like Prichard is another Detroit in the South.

 

[MovingTarget]

Lazy pieces of shit. Official federal retirement age is 65. That one bastard is only 58 and he's retired. 59? 61? Are these people just profoundly retarded or something? Hey look at how smart I am; I'm going to retire early even though I haven't saved a fucking penny my whole life! W00t I R SO SMRT.

There are very few valid reasons to stop working. 1 - you are physically not capable of working due to illness/cancer/other. 2 - you saved a lot of money and can afford to retire. These people definitely do not fit criterion 2 and I doubt they fit 1 either.

Having met at least one of these people in person, I would hardly call them "lazy pieces of shit". They put in decades of service with wages that were mediocre at best simply because they were promised that they would be able to retire one day and still make ends meet. It is part of their negotiated compensation, period. Being able to afford to retire often means having secured a pension in addition to personal savings and social security (this is the "three-legged stool" argument I've made before). Perhaps you and others who believe like you do would like to have a significant portion of their compensation retroactively disappear when they retire?

Besides, just because people live longer these days doesn't mean that their quality working years have been extended. Aging takes its toll on your body no matter what the federal retirement age is. This is an undeniable fact - but one that is difficult to deal with financially as a nation. You can retire early in the federal system at 62, albeit at a reduced rate of compensation. Everyone deserves to have a few quality years of retirement before their health completely fails them.

 

[Chaotic42]

There are very few valid reasons to stop working. 1 - you are physically not capable of working due to illness/cancer/other. 2 - you saved a lot of money and can afford to retire. These people definitely do not fit criterion 2 and I doubt they fit 1 either.

I honestly think that this concept of retiring and living out the golden years is gone for a long time. I'm 28 and I have no illusions about retiring. I'm saving just in case, but I expect to be working at 70.