Policy makers trying to come up with a way for states to declare BANKRUPTCY!

[clacy]

Quote from GTG:

The primary motivation for the proposed "state bankruptcy" laws is to give the states a way to change the terms of the contracts with their existing and retired public employees. The laws would allow them to renegotiate their current union contracts, and come to a settlement with regard to the existing pensioners.

Yes, this has to happen for many states to survive. It would be a good thing, IMO to get a clamp on these out of control government pensions.

 

[AKUMATOTENSHI]

It is a sad day in the US to see this come about. The other choice would be to pay the money back and grind it out instead of skirting reasponsibilities. It sets a cultural precedence when this occurs. What do you tell GENERATION X,Y,Z,i and Alpha when it is ok to run up the debt and claim insolvency/banruptcy? Hopefully somebody will put a stop to this and take ownership.

Akuma

 

[Good1]

Texas: Too big to fail?

What if we allowed solvent states to buy up insolvent states? Would fewer, more efficient states be better?

 

[denner]

Quote from AKUMATOTENSHI:

It is a sad day in the US to see this come about. The other choice would be to pay the money back and grind it out instead of skirting reasponsibilities. It sets a cultural precedence when this occurs. What do you tell GENERATION X,Y,Z,i and Alpha when it is ok to run up the debt and claim insolvency/banruptcy? Hopefully somebody will put a stop to this and take ownership.

Akuma

To hell with that. Generation X, Y and Z will/would be the ones asked to fund the legacy costs for the Baby Boomer retirees with their golden parachute pensions. In turn, they'd never have a prayer of receiving such a generous pension plan in 20-30 years, since it's a mathematical impossibility.

No, when the politicians who literally answer to no one except for their own beholden union thugs who colluded to create these unsustainable costs that are funded by non-union members, they deserve to have them stripped if the costs are so great that they disrupt the basic operational functions of a state government.

Bankruptcy is the only sensible option at this stage of the game.

 

[rcj]

In Tx the budget is for two yrs so i think the shortfall stated
in media is for the two yr period not one yr.

IMO, it may happen that a few counties combine into one entity
in attempt to save themselves if things get really bad. Same for some school districts.

 

[larrybf]

how else to solve a ponzi scheme?????????????

 

[dumb_mother]

amazing how the greediest generation in memorable history (the baby boomers) has managed to break the back of the american economy- and even as it fails they demand more, more, more!

 

[LeeD]

Quote from GTG:

The primary motivation for the proposed "state bankruptcy" laws is to give the states a way to change the terms of the contracts with their existing and retired public employees. The laws would allow them to renegotiate their current union contracts, and come to a settlement with regard to the existing pensioners.

What I am missing is why there is a need for a special law.

There is a history of states going bankrupt. It is quite common for financially sound companies to go into "restructuring" in order to unwind long-term contracts. Why is a new law needed so that states can do the same?

 

[wiesman02]

Quote from Scataphagos:

, plus government employee salaries/benefits and social obligations.

Easy for someone to say that hasn't worked for the gov't for 15+ years building up for a pension and planning around it. You can't just take something like that away.

 

[Scataphagos]

Quote from wiesman02:

Easy for someone to say that hasn't worked for the gov't for 15+ years building up for a pension and planning around it. You can't just take something like that away.

Well, it's a MUST. Government pensions are predicated upon the private sector paying for it. And if "too much has been promised than can be delivered", a cutback is the only option.

There NEVER should have been such a thing as "public employee defined benefit pension plan paid for by taxpayers"... that's entirely IMMORAL. Not only immoral, unsustainable.... cannot be paid for.... regardless of what has been promised.

So.... if you're a "unionized, public employee".... you better accept what you were promised is an ILLUSION... otherwise you will find yourself receiving NOTHING.