Vallejo Independent Bulletin - Hot Links--12/22/08

For those of you who were at the last SDCCF meeting on December 1st and heard Jon Riley's talk on Vallejo Firefighters Local 1186's struggle with their city attempting to throw out all their contracts by declaring
bankruptcy, you know how bad it is for them. If you weren't there you might not appreciate that if the City of Vallejo gets away with this YOUR city

3) What If New York Goes Bust?

by John Avlon

12/22/08

Forget the car companies and Lehman Brothers. Two of the biggest states in the country are teetering on the edge of bankruptcy, thanks to ridiculous union agreements that can’t be changed.

If California and New York State were businesses, they'd be going bankrupt. If you're among the nearly 20 percent of Americans who live or work in these two states, the fiscal crisis is coming home for the holidays. And the worst is still on its way.

4) Editorial: We get to cover CalPERS risky bets

Giant state worker pension fund, knowing taxpayers had its back, lost its shirt in real estate

The front page of Wednesday's Wall Street Journal featured a shocking news story about severe financial problems in the public employees union-dominated California Public Employees' Retirement System,

The more I read about Madoff, the angrier I get. This con artist not only screwed over his fellow Jews, he also screwed over many innocent victims who benefited from the charities his clients set up. Ripples from the Madoff scandal have spread everywhere, including pension funds.

But as bad as the Madoff scandal is, it pales in comparison to the greatest Ponzi scheme that is still going on today - the pension Ponzi.

6) County employee pension funds hurting

Cost-of-living increases look out of reach; payouts remain safe barring multiyear stock market descent

Published: Sunday, December 21, 2008 at 4:21 a.m.
Last Modified: Sunday, December 21, 2008 at 8:15 a.m.

The value of the fund paying pension benefits to about 3,400 Sonoma County government retirees has sunk 32 percent from its high of $1.7 billion at the end of 2007, reflecting the yearlong downturn in financial markets.

LINK

7) California Implodes In Multiple Ways

Inquiring minds are investigating the rapidly deteriorating economic conditions in California. Let's take a look at the lowlights starting with Schwarzenegger May Order Unpaid Leave for Employees

California Governor Arnold Schwarzenegger today ordered all state workers to take two days of unpaid leave each month to conserve money amid a record budget deficit and a legislative impasse over how to fix it.

8) Cities, taxpayers face growing pension tab

Local cities — and their taxpayers — are potentially on the hook for hundreds of thousands of dollars in coming years to make up investment shortfalls from the largest pension fund in the country.

9) Bailing out California, Again

If many of the nation’s governors have their way, the next agenda item for the spendthrift federal government could be a bailout of state budgets. According to a report issued on December 10 by the Center on Budget and Policy Priorities, 37 states face mid-year 2009 budget deficits, totaling $31.7 billion. As would be expected from its size, California leads the pack at $8.4 billion. However, California’s shortage is well above its share, at more than one-quarter of the total which is double its share of the population.

10) Redding proposes cuts to programs, police and fire fighters

In a bid to lop $3.1 million, or 4 percent from the city's general fund budget, Redding officials Wednesday proposed laying off 14 employees - including three firefighters.

Redding would leave nine other positions open, including those of five police officers who recently retired or are about to retire. Those additional public safety cuts would come mainly from the neighborhood policing unit, which would be eliminated, should the City Council approve the plan Monday.

The proposed cuts would not hurt the department's call for service, 911 and emergency response times, Police Chief Peter Hansen said.