public pension promises

[Martha]

The lead article in the week's Business Week is about how public pension promises are draining state and city budgets. The article discusses in detail under funding problems with pensions and even bigger problems with no funding for retiree health benefits. Any options besides raising taxes? Maybe not. The article says that most state constitutions guarantee pension promises. There is no history of default and even a municipal bankruptcy may not erase these debts. Not a pretty picture.

Some interesting comparisons between state/local government employees andprivate sector employees:

Government Private

34.72 23.76 Average compensation per hour
2.23 .85 Average retirement per hour
98% 60% Workers with some kind of retirement plan
86% 66% Workers with health insurance

 

[cute fuzzy bunny]

Its only a matter of time before there are no longer any retirement 'plans' or health care except for what you put together or obtain yourself.

Working until you drop is going to come back into fashion.

 

[Spanky]

Any options besides raising taxes? Maybe not.

How about reduce governmental expenditure or waste?
.. e.g., military, pension benefits, useless agencies/services, $100 nail, $200K toilet in a rural park, white house renovation, etc ..... you can add your own.

 

[cute fuzzy bunny]

I've seen senators grilling greenspan on options. They mention cutting spending and then brisk by that as though its a totally incomprehensible option.

 

[Michael]

In his hearing yesterday, Alan recommended "choices" between programs as government spending is unsustainable. A politician asked him how cutting spending could possibly be done. They seem to be clueless. Spending on outrageous programs will probably get worse, not better.

 

[Michael]

There is no history of default and even a municipal bankruptcy may not erase these debts.

Full health care may not be guaranteed in all instances. A local teacher told me that retiree health care payments were going up so fast that he was afraid to retire. COLA provisions may also be cut, allowing inflation to solve the government's problem

Of course, this will not solve the retirees' problems.

 

[tozz]

I was not able to access the article online, but I would quibble dearly with any contention that government employees make nearly 50% more than their private counterparts.

Government        Private

34.72                       23.76    Average compensation per hour

 

[cute fuzzy bunny]

Not a lot of burger flippers and walmart greeters in govt service. I wouldnt be surprised.

 

[Nords]

COLA provisions may also be cut, allowing inflation to solve the government's problem.

Nah, we'll just index COLAs to the CPI.

The hedonic improvements will make up the difference!

 

[cute fuzzy bunny]

I'm waiting for this one:

"We've uncovered today, that the hedonic adjustments we've been making to CPI have resulted in americans awakening to the reality that our world is full of so many products and services that are so much better than they were just 5 years ago, that the very idea of inflation is moot. Thank you for playing."

 

[BUM]

Ahhhhh Martha really knows how to start a thread! We've already got the govt. vs. private sector, pensioners vs. non-pensioners, pork barrel politics, Greenspan, COLA, CPI...this is gonna be great!

 

[Martha]

TH is right that service jobs pull down the private sector's earnings per hour figure. However.state and local managers and professional staff earned $42.87 an hour last year, while their private sector counterparts earned $41.52. So even the white collar workers do a bit better.

 

[Martha]

The article was about state and local workers only, not federal employees. On the federal level, the government can satisfy obligations by printing more money. The state and local governments have far less flexibility. One worry of the auther is that people will move from states like Illinois that will need to substantially increase taxes to meet its underfunded obligations.

 

[Mr._johngalt]

The article was about state and local workers only, not federal employees.  On the federal level, the government can satisfy obligations by printing more money.  The state and local governments have far less flexibility.  One worry of the auther is that   people will move from states like Illinois that will need to substantially increase taxes to meet its underfunded obligations.

If I didn't have family obligations, I couldn't get out of Illinois fast enough.
We live in a very pretty area, and since I must be here
where we are is fine. Otherwise, I don't like the politics or the weather.
Not sure which I dislike more.

JG

 

[Zipper]

John, when you lived in Wisconsin, did you know Harry Moosecock in Oshkosh?

 

[Mr._johngalt]

John, when you lived in Wisconsin, did you know Harry Moosecock in Oshkosh?

No, but I knew a urologist named Woody

JG

 

[Zipper]

I think Harry lived at 75 Chestnut St.?

Did you know a Dinky Withers at 80?

 

[cute fuzzy bunny]

lol

 

[Spanky]

However, state and local managers and professional staff earned $42.87 an hour last year...

I assume that they deserve every penny of it because of their dedication and hardwork to serve the public. They work harder than the managers and prodessionals in the private sector.

...the government can satisfy obligations by printing more money

Great. All we need is more national debt.

..The state and local governments have far less flexibility. One worry of the auther is that people will move from states like Illinois that will need to substantially increase taxes to meet its underfunded obligations...

Well, grass is not greener elsewhere. You cannot avoid tax. I am suprised that people would move because of increased tax. Don't they want to express their graditude or the valuable services provided by the public workers? Paying more tax to support their pension plans is one way to say that we thank you for all your dedication and hardwork.

Hmmm. I wonder if I should have my head examined for these statements.

 

[Mr._johngalt]

I think Harry lived at 75 Chestnut St.?

Did you know a Dinky Withers at 80?

No, but I knew the late "Tiny" Cox. I read in The Milwaukee Journal
that he was a stiff.

JG

 

[unclemick]

The local Firemen have been winning in court for over a decade now - the judges say the law is the law - pay them the money you owe them.

The City has said - you can't get blood out of a turnup - aka go pound sand - so what if we lied and screwed you on back pay and benefits. Life is hard - the tax money isn't there.

Negotiations continue.

 

[cute fuzzy bunny]

No, but I knew the late "Tiny" Cox. I read in The Milwaukee Journal
that he was a stiff.

JG

Wow Johnny...you sure "know" a lot of guys with names that are pseudonyms for penis...

Dang it, I meant to mis-spell something so you could apply your mensa caliber intellect to a pedantic reply...maybe next time...

 

[BUM]

I assume that they deserve every penny of it because of their dedication and hardwork to serve the public. They work harder than the managers and prodessionals in the private sector.
Great. All we need is more national debt.
Well, grass is not greener elsewhere. You cannot avoid tax. I am suprised that people would move because of increased tax. Don't they want to express their graditude or the valuable services provided by the public workers? Paying more tax to support their pension plans is one way to say that we thank you for all your dedication and hardwork.

Hmmm. I wonder if I should have my head examined for these statements.

Spanky,

Come in to my office. Recline here on the couch, tell me about your childhood. Did your mother beat you? UmHmm. How do you feel about that?

Our time is up for today... NEXT!

Good afternoon, Mr. Galt.

 

[Mr._johngalt]

Spanky,

Come in to my office. Recline here on the couch, tell me about your childhood. Did your mother beat you? UmHmm. How do you feel about that?

Our time is up for today...  NEXT!

Good afternoon, Mr. Galt.

I kind of admired Spanky for just "lettin' it flow". Personally, I find
this quite therapeutic. Anyway, it's cheap entertainment.

JG

 

[Mr._johngalt]

Wow Johnny...you sure "know" a lot of guys with names that are pseudonyms for penis...

Dang it, I meant to mis-spell something so you could apply your mensa caliber intellect to a pedantic reply...maybe next time...

I have decided if they ever adjust the rankings here to cover more
than posting volume, perhaps "quality of content" should be factored in somehow. BTW, misspell is not hyphenated

JG