Sales-tax hike’s roots lie in pension increases

[GH]

Most pension commitments which are problematic were made based on an assumption of growth, both in terms of tax revenue and in terms of investments which were assumed to return 8% annually. Obviously today, many have lost value or are at best returning just a small fraction of this amount.

I doubt tax increases are on the menu, and even if they were, I doubt it would raise revenue as the economy continues to circle the drain.

[all]

[quote=andymajumder]I keep hearing this – even on KPBS radio I heard this a couple of times, that the pension commitments cannot be gotten rid off and even if the city declares bankruptcy – it still has to pay these ridiculous pensions. Is that true?[/quote]

No bankrupt municipality has overturned guaranteed pensions before. To do so in San Diego, a federal bankruptcy judge would have to overrule the city charter, the state constitution and in effect create new law. If it happened, the case would almost certainly go to the U.S. Supreme Court. Goldsmith believes justices would think the ruling impinged on state’s rights and overturn it.

There is more:

http://www.voiceofsandiego.org/government/article_0418be36-1aa3-11df-840f-001cc4c03286.html

[all]

[quote=andymajumder]I keep hearing this – even on KPBS radio I heard this a couple of times, that the pension commitments cannot be gotten rid off and even if the city declares bankruptcy – it still has to pay these ridiculous pensions. Is that true?[/quote]

No bankrupt municipality has overturned guaranteed pensions before. To do so in San Diego, a federal bankruptcy judge would have to overrule the city charter, the state constitution and in effect create new law. If it happened, the case would almost certainly go to the U.S. Supreme Court. Goldsmith believes justices would think the ruling impinged on state’s rights and overturn it.

There is more:

http://www.voiceofsandiego.org/government/article_0418be36-1aa3-11df-840f-001cc4c03286.html

[all]

[quote=andymajumder]I keep hearing this – even on KPBS radio I heard this a couple of times, that the pension commitments cannot be gotten rid off and even if the city declares bankruptcy – it still has to pay these ridiculous pensions. Is that true?[/quote]

No bankrupt municipality has overturned guaranteed pensions before. To do so in San Diego, a federal bankruptcy judge would have to overrule the city charter, the state constitution and in effect create new law. If it happened, the case would almost certainly go to the U.S. Supreme Court. Goldsmith believes justices would think the ruling impinged on state’s rights and overturn it.

There is more:

http://www.voiceofsandiego.org/government/article_0418be36-1aa3-11df-840f-001cc4c03286.html

[all]

[quote=andymajumder]I keep hearing this – even on KPBS radio I heard this a couple of times, that the pension commitments cannot be gotten rid off and even if the city declares bankruptcy – it still has to pay these ridiculous pensions. Is that true?[/quote]

No bankrupt municipality has overturned guaranteed pensions before. To do so in San Diego, a federal bankruptcy judge would have to overrule the city charter, the state constitution and in effect create new law. If it happened, the case would almost certainly go to the U.S. Supreme Court. Goldsmith believes justices would think the ruling impinged on state’s rights and overturn it.

There is more:

http://www.voiceofsandiego.org/government/article_0418be36-1aa3-11df-840f-001cc4c03286.html

[all]

[quote=andymajumder]I keep hearing this – even on KPBS radio I heard this a couple of times, that the pension commitments cannot be gotten rid off and even if the city declares bankruptcy – it still has to pay these ridiculous pensions. Is that true?[/quote]

No bankrupt municipality has overturned guaranteed pensions before. To do so in San Diego, a federal bankruptcy judge would have to overrule the city charter, the state constitution and in effect create new law. If it happened, the case would almost certainly go to the U.S. Supreme Court. Goldsmith believes justices would think the ruling impinged on state’s rights and overturn it.

There is more:

http://www.voiceofsandiego.org/government/article_0418be36-1aa3-11df-840f-001cc4c03286.html

[desmond]

“There is nothing that we can do” say the public officials. The only way to change is for everybody to say “there was nothing I could do” when they don’t send in their property taxes.

[desmond]

“There is nothing that we can do” say the public officials. The only way to change is for everybody to say “there was nothing I could do” when they don’t send in their property taxes.

[desmond]

“There is nothing that we can do” say the public officials. The only way to change is for everybody to say “there was nothing I could do” when they don’t send in their property taxes.

[desmond]

“There is nothing that we can do” say the public officials. The only way to change is for everybody to say “there was nothing I could do” when they don’t send in their property taxes.

[desmond]

“There is nothing that we can do” say the public officials. The only way to change is for everybody to say “there was nothing I could do” when they don’t send in their property taxes.

[pjwal]

It’s an uncertainty that might force unions and retirement systems to take a deal without forcing a judge to rule on the issue.
…
In short, bankruptcy levels the playing field. Everyone owed money must jockey for position. It’s more likely in bankruptcy, Shea said, for a party to settle than to bet on victory particularly when so much money is at stake.
…
A bankruptcy might not wipe pension obligations away, but it could make the debt smaller.

Everyone always takes things out of context. No one is talking about completely wiping pension obligations off the books. But somehow, through bankruptcy or otherwise, the obligation needs to be reduced. I vote for bankruptcy.

[pjwal]

It’s an uncertainty that might force unions and retirement systems to take a deal without forcing a judge to rule on the issue.
…
In short, bankruptcy levels the playing field. Everyone owed money must jockey for position. It’s more likely in bankruptcy, Shea said, for a party to settle than to bet on victory particularly when so much money is at stake.
…
A bankruptcy might not wipe pension obligations away, but it could make the debt smaller.

Everyone always takes things out of context. No one is talking about completely wiping pension obligations off the books. But somehow, through bankruptcy or otherwise, the obligation needs to be reduced. I vote for bankruptcy.

[pjwal]

It’s an uncertainty that might force unions and retirement systems to take a deal without forcing a judge to rule on the issue.
…
In short, bankruptcy levels the playing field. Everyone owed money must jockey for position. It’s more likely in bankruptcy, Shea said, for a party to settle than to bet on victory particularly when so much money is at stake.
…
A bankruptcy might not wipe pension obligations away, but it could make the debt smaller.

Everyone always takes things out of context. No one is talking about completely wiping pension obligations off the books. But somehow, through bankruptcy or otherwise, the obligation needs to be reduced. I vote for bankruptcy.

[pjwal]

It’s an uncertainty that might force unions and retirement systems to take a deal without forcing a judge to rule on the issue.
…
In short, bankruptcy levels the playing field. Everyone owed money must jockey for position. It’s more likely in bankruptcy, Shea said, for a party to settle than to bet on victory particularly when so much money is at stake.
…
A bankruptcy might not wipe pension obligations away, but it could make the debt smaller.

Everyone always takes things out of context. No one is talking about completely wiping pension obligations off the books. But somehow, through bankruptcy or otherwise, the obligation needs to be reduced. I vote for bankruptcy.

[Author]

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