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no_such_reality.
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July 10, 2012 at 9:52 PM #19952July 10, 2012 at 10:23 PM #747649
paramount
ParticipantWow.
No on the Brown tax increases.
And by now I’m sure most have heard about the crooked public employees unions attempt to manipulate the ballot for the tax increase proposition.
July 10, 2012 at 10:51 PM #747651CDMA ENG
Participant[quote=paramount]Wow.
No on the Brown tax increases.
And by now I’m sure most have heard about the crooked public employees unions attempt to manipulate the ballot for the tax increase proposition.[/quote]
You lend yourself no creditablity when you immediately villify people. I am no fan of unions but there is no need to constantly attack and name call.
Why don’t you start in on the “mormons” or the “darkies” next?
Jeessess… Just give it a brake.
CE
July 10, 2012 at 10:53 PM #747652spdrun
ParticipantReligion of birth and race aren’t choices. Profession is. I for one have NO problem vilifying someone because of their CHOSEN profession.
July 10, 2012 at 11:06 PM #747655Participant[quote=CDMA ENG][quote=paramount]Wow.
No on the Brown tax increases.
And by now I’m sure most have heard about the crooked public employees unions attempt to manipulate the ballot for the tax increase proposition.[/quote]
You lend yourself no creditablity when you immediately villify people. I am no fan of unions but there is no need to constantly attack and name call.
Why don’t you start in on the “mormons” or the “darkies” next?
Jeessess… Just give it a brake.
CE[/quote]
No, I won’t…
July 10, 2012
By John Seiler
In California, nothing is certain. Nothing makes any sense.
So the courts still might change the numbers just given by Secretary of State Debra Bowen to the propositions on the November ballot.
That’s because Gov. Jerry Brown rigged the system so his $8.5 billion tax increase to kill the state economy and destroy jobs and businesses would be the first one, Proposition 30.
The public employee unions really are clever – do not underestimate their ability to destroy more California cities.
July 11, 2012 at 6:04 AM #747660The-Shoveler
ParticipantThe housing bust takes out another one.
The math just does not work without some serious inflation.July 11, 2012 at 6:07 AM #747661Anonymous
GuestThis is what happens when you run out of other people’s money.
July 11, 2012 at 6:02 PM #747722bearishgurl
ParticipantAnother sad tale of unchecked, runaway residential development, likely all in tatters now. When the PTB in SB granted the formation of all those new CFD’s in the last 15 years, where did they think all these new homeowners were going to WORK? Did they think everyone who bought in a windy, flat tract in the shadows of Cajon Summit were actually “retirees?”
LOL. No one in their right mind would voluntary “commute” every day from there to East LA, Corona, Pasadena, etc.
Now they have 20% less employees to service likely 140%+ of their original city area. This can’t end well.
This is what happens when you elect politicians with stars in their eyes and sh!t for brains who bow to the All-Powerful, Deep-Pocketed, Almighty Developer. Like other CA cities with land to spare (nevermind they have been lizard habitats since the dawn of time), they fell for the bond-money-generates-property-tax-income ruse (Mello Roos, that is). Now they must sleep in the bed they made.
Sad …. the Piggs would do well to take note of the similarities between SB and Stockton.
July 11, 2012 at 6:09 PM #747723ParticipantThe problem is …..
The math is not all that much different than the city of L.A. or the State for that matter. Maybe a peek inside the SD county coffers would show much the same as well.
without some serious cost cutting or inflation, the numbers are just not going to work for too much longer.
The Fed can print it’s own money, the states cannot..
July 11, 2012 at 6:16 PM #747724ParticipantMaybe the coming downturn in Europe will lower the tide some more and we can see who needs a new swim suit.
What was that saying, those that live in glass homes…July 11, 2012 at 6:29 PM #747725sdrealtor
ParticipantI actually did a short sale up in SB about 2 years ago. Poor guy had his dream home and lost his job as did his wife. It was a beautiful tract home built in the early 90’s on what must have been one of the nicer streets in SB (Ridge Line) high up on a hillside. Had a nice pool and spa overlooking the snow covered mountains. I think it was the nicest view of any home I have ever sold. He paid about $570K for it and we sold it for about $315K. The buyer got a steal IMO even though it dropped about 50K since then as its an amazing property as long as he is there for the long haul. He had a great job. Think he worked at ESRI in Redlands.
July 11, 2012 at 7:05 PM #747729davelj
ParticipantIn my opinion the most interesting part of this will be the determination of seniority (or liquidation preference) between the pension funds and the bond holders, as this is uncharted territory.
I suspect that at least some judges will deem the pensions to have been willfully ignorant in assuming that the taxpayers would be willing to pay what the pensioners assumed they would bear. And if that happens – whoa Daddy – things will get very interesting.
San Diego isn’t as bad off as San Bernardino County, but… we’re still pretty damn sickly. I give it even odds that we eventually go through the same process as Stockton – better than even odds if the Stockton BK (or others that follow it) end up with pension liability reductions as that dramatically increases the attractiveness of the BK option.
The fundamental mistake that the unions have made is in assuming that the taxpayers would be willing to meet whatever pension burden the local politicians saddled them with. (This is not unlike a banker ignoring a borrower’s willingness – as opposed to its ability – to pay its debt… and finding out the underlying collateral is insufficient to repay the principal.) In any case, it’s going to be pretty interesting.
July 11, 2012 at 7:44 PM #747731Aecetia
Participant“When the city manager of troubled Stockton, Calif., had to tell city council members why it was on track to become the biggest American city yet to go bankrupt, it took hours to get through the list. There was the free health care for retirees, the unpaid parking tickets, the revenue bonds without enough revenue to pay them.”
This is from March, but still relevant to San Bernardino and others here.
July 13, 2012 at 9:08 PM #747970blake
ParticipantInvestors attack San Bernardino County’s plan to seize mortgages
[quote]
A plan to seize and restructure troubled mortgages using eminent domain in San Bernardino County is under assault by investor groups, which call it unconstitutional and potentially costly to homeowners.The cities of Ontario and Fontana, in partnership with the county, are exploring using private funds to acquire mortgages that are “underwater,” where the homes wouldn’t sell for enough money to pay off the loans. Under the Homeownership Protection Program, the loans acquired by government authority would be restructured, lowering the amount owed, with the intent of helping the owner keep the home.
…
[/quote]July 13, 2012 at 10:45 PM #747977ParticipantRising public pension costs are one of the catalysts pushing cities into fiscal peril. In San Bernardino, the city’s obligation to its employee retirement system rose from $1 million in the 2006-07 fiscal year to nearly double that in the current budget year. In three years, those costs are expected to swallow 15% of the budget.
Pension spending grew an average of 11.4% a year in the state’s biggest cities and counties from 1999 to 2010, roughly twice as fast as spending on public safety, social services, recreation, health and sanitation, according to a February report by the Stanford Institute for Economic Policy Research.
Joe Nation, a Stanford economics professor and co-author of the February report, thinks for at least some cities, insolvency is inevitable unless they can wrest much bigger concessions on salaries and pensions from public employees.
“I think this is the tip of the iceberg in terms of the problem,” Nation said. “Stockton was spending $12 [million] or $13 million on pensions 10 years ago. By 2010, it was $30 million … and will double again over the next five years, unless something is changed.”
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