CBS 60 Minutes State Budgets Day of Reckoning Pension Crisis City Municipal Whitney TheLawman49

Dec. 19, 2010, State Budgets: Day of Reckoning
60 Minutes, municipal government Meredith Whitney segment ... financial collapse ...CBS '60 Minutes' shines spotlight on the states' budget and pension crises
December 20th, 2010 Admin No comments
Steve Kroft reports on the precarious financial conditions many states are facing — including California — and what they're doing about it: Muni sixty crisis

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[CashOnTheNail1955]

Tacky 'sponsorship' deals [KFC Brooklyn Bridge, Wal-Mart White House...] worth-a-look.

UK-too in-denial of UK£4+TRILLION [MILLION-MILLION] unfunded pension-liability. Individual-pensions are-dead; chances-are, work-till you-drop. Napoleon created 'pensions' that clicked-in post estimated death-date.

[verysmartdude]

PERS has to project into the future so the unfunded liablity would be if every State employee worked 30 years and collected a pension, there may be a problem. It's like buying a new house and you put 10 percent down, you can still make the payments easily but your bank account would have to funded to be able to pay the house off in full. Only 10 percent retire, PERS still has to fund as all of them make a 30 year career, that's were the unfunded liability comes from, it's not really there.

[otet532]

The more shocking thing is the lack of viewership of this video and the comments that sum up some compelling facts, taken at face value.

[CheeezMaster]

Oh you pessimists.. Be positive, the world's changed, we have hope and change now.

[myHome109]

Please excuse me. I mixed the sum of all states pension debt numbers with the Washington State paragraph and blogged the unamended information. My error.

Washington State is suffering $5 Billion to $7 Billion shortfall in 2011 because of maintenance of effort issue related to salary and pension boosts to government workers in 2008 and 2009. This estimated $5 Billion / 4% or $125 billion no-asset phantom investment pension plan.

[myHome109]

2009 Federal Gov issue TARP and American Recovery and Reinvestment Act for Shovel Ready job. States took the grant money with interpretation using PL104-4 section 4 with no accountability or auditing requirements and boosted government union workers salaries, pensions and healthcare benefits under the disguise of Medicare and Medicaid payments.

[myHome109]

Salaries were boosted for 10,000 Washington State government workers under the disguise of layoff and rehired at a much higher pay rate in a similar job. National audits by CBO, GAO and Congress found only 6% of the funding went to shovel ready jobs and the remainder went for boosting pension, salaries, salary boosting job transfers (shown as layoffs) and some went to Medicare and Medicaid.

[myHome109]

The problem with boosting government union salaries, pensions, Medicare and Medicaid payments using one time fund contribution comes with a law requiring “maintenance of effort” requirement. This created the almost $1.9 trillion short fall one year after the American Recovery and Reinvestment Act funds (Stimulus Package) disappeared and created the $50 Trillion dollar no-asset phantom investment Ponsi Scam, we are in today.

[myHome109]

Washington State used 2010 passage of amendment 5228 to issue debt at will (by passing Article 8 Section 3, voter approval for debt issuance and Article 8 section 4 where debt issued on voter approve issues can only be appropriated for other use after 2 years) to cover the second year cost for the salary, pension, healthcare, Medicare and Medicaid increase maintenance cost.

[myHome109]

Today, the legislature are using Washington State Constitution Article 8 Section 4 and embezzling funds from children education, senior and poor people, construction funds, etc. etc. just to continue to fund the $10 billion annual maintenance of effort for the salary, pension, healthcare benefits and Medicare and Medicaid boost, funds diverted from shovel ready jobs using PL104-4 sec 4, Washington State Constitution Article 8 Section 4 and Washington State Constitution Amendment 5228.