What happens to public workers when a city defaults... (Sacramento: home, bankruptcy)

[yeahthatguy]

Mish's Global Economic Trend Analysis: Central Falls Bankruptcy Update "All Contracts with Municipal Workers and Retirees Including Police and Fire Workers Immediately Voided"
Central Falls Bankruptcy Update "All Contracts with Municipal Workers and Retirees Including Police and Fire Workers Immediately Voided"

Just so those public workers know what happens when you run a city in the ground... You most definitely wont come out on top.

California is no stranger to this as the City of Vallejo filed bankruptcy some time back ...

[TimC2462]

Originally Posted by yeahthatguy

Mish's Global Economic Trend Analysis: Central Falls Bankruptcy Update "All Contracts with Municipal Workers and Retirees Including Police and Fire Workers Immediately Voided"
Central Falls Bankruptcy Update "All Contracts with Municipal Workers and Retirees Including Police and Fire Workers Immediately Voided"

Just so those public workers know what happens when you run a city in the ground... You most definitely wont come out on top.

California is no stranger to this as the City of Vallejo filed bankruptcy some time back ...

The "blog" is talking about Central Falls in Rhode Island. Seeing that the link has nothing to do with our state, this should be posted in another forum.

[Gentoo]

Originally Posted by yeahthatguy

Mish's Global Economic Trend Analysis: Central Falls Bankruptcy Update "All Contracts with Municipal Workers and Retirees Including Police and Fire Workers Immediately Voided"
Central Falls Bankruptcy Update "All Contracts with Municipal Workers and Retirees Including Police and Fire Workers Immediately Voided"

Just so those public workers know what happens when you run a city in the ground... You most definitely wont come out on top.

California is no stranger to this as the City of Vallejo filed bankruptcy some time back ...

I remember when Orange County filed bankruptcy back in the 90's. I'm not seeing the connection here however.

[yeahthatguy]

Originally Posted by TimC2462

The "blog" is talking about Central Falls in Rhode Island. Seeing that the link has nothing to do with our state, this should be posted in another forum.

It called court precedence .. And establishes what happens to public workers when a city defaults...

Many places in California face Pension issues and this is a good preview of what will happen when those cities get pushed to default due to obligations like pensions.. especially in what the market is realizing is another upcoming wave of tough economic times .. and reduce gravy train money from washington...

Calpers bet big and doubled down to cover its behind.. got lucky.... I can't wait (as the market starts trending lower again) to see the epic losses they have in quarters to come.

California Takes Huge Leap Toward Default | CalWatchDog
To bring the point home and show the relation

[TimC2462]

Originally Posted by yeahthatguy

It called court precedence .. And establishes what happens to public workers when a city defaults...

Many places in California face Pension issues and this is a good preview of what will happen when those cities get pushed to default due to obligations like pensions.. especially in what the market is realizing is another upcoming wave of tough economic times .. and reduce gravy train money from washington...

Calpers bet big and doubled down to cover its behind.. got lucky.... I can't wait (as the market starts trending lower again) to see the epic losses they have in quarters to come.

California Takes Huge Leap Toward Default | CalWatchDog
To bring the point home and show the relation

I'd rather that doesn't happen. I agree with you to an extent that the pension issues are unsustainable. I wish there weren't extremes of fiscal policies that would have the public pay for the gov't's ineptness.

[Curmudgeon]

It's only a precedent if an appellate court sustains the ruling and publishes their decision. Even then, that would most likely only be applicable to the state in which filed although others could point to and cite it.

[Bulldogdad]

It is happening currently in Stockton. The council has declared a fiscal emergency which it states allows it to bypass all city employee collective bargaining agreements to make any cuts/reductions it deems necessary to keep the city from going into default.

Here is a good explanation on the Sacramento Police Officers Association web site of the four measures that cities in California are currently using to side step union contracts in dealing with their budget issues.

Without putting forth any personal anecdotes lets just say its getting ugly out there.

Betrayal: The Attack on public employee collective bargaining rights in California

[DMenscha]

Originally Posted by Curmudgeon

It's only a precedent if an appellate court sustains the ruling and publishes their decision. Even then, that would most likely only be applicable to the state in which filed although others could point to and cite it.

And in Federal Court district in which a Federal Appeals Court made the ruling. (Some districts overlap several states)

[steel7]

I havent heard anything lately on the pension crisis in ca so it must of tapered off.

[Curmudgeon]

It's a real issue but the flap is just so much more political kabuki and sword rattling.