Richmond, California mayor "one of these days it's all going to come crashing down"

[2sleepy]

Originally Posted by lovecrowds

California local governments, schools feel big pension squeeze | The Sacramento Bee

Richmond, California due to union bribes spending 50 million a year now for pension obligations and "anticipates another 50% increase in the next half decade"
California local governments, schools feel big pension squeeze | The Sacramento Bee
Looks like it could go into bankruptcy soon, this while certain crimes are spiraling out of control in that city.
Doesn't look like the police are pay based on performance as they average more then $137,000 a year.
Love, how these cities just ignore all these unfunded pension obligations, while projecting insane 7%+ returns year after year as if it there isn't a huge equity bubble already.
I honestly can't wait until it all comes crashing down on these cities for promises that were based on false, optimistic numbers and unions bribes. They should have just had a 401k plan all-along then they could have 50 million more per year to spend on the city services like those $137,000 a year police officers.

The City isn't "ignoring" pension funding obligations, they are paying them, that is why they are having problems. This mess is due to the pension changes in 1999 which gave public safety employees 3% per year with retirement @ 50. At the time it was implemented CalPERS was flush with cash and sold cities and counties on the idea that they would never have to pay for it, that CalPERS would cover it, of course that didn't work out very well so pension funding is eating up large portions of City and County budgets. There was legislation passed in 2013 (PEPRA) that reduced the pension formulas and increased employee contributions but it will be some time before the impact of that law will be felt.

The City might go bankrupt, but they can't discharge their pension obligation and they will probably end up coming out of bankruptcy not much better than when they went into it after all of the attorney and court fees. You can look at Vallejo or Stockton for examples of that.

And I have no idea what you are talking about when you claim that "crime is spiraling out of control" in Richmond, I can't find any evidence of that so a source would be appreciated.