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Old 10-13-2011, 04:25 PM
 
Location: Near a river
16,042 posts, read 20,047,358 times
Reputation: 15719

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Today's Washington Post...not good news http://www.washingtonpost.com/busine...HgL_story.html

"....Harrisburg’s bankruptcy filing comes as a growing number of municipalities across the country are struggling with mounting debt and a decline in revenue in the recession’s aftermath.

Just last month, Alabama’s Jefferson County narrowly avoided being dragged into bankruptcy from a failed sewer financing deal, although a final resolution has yet to be reached. Earlier this year, the tiny city of Central Falls, R.I., went into bankruptcy, clearing the way for deep cuts in the pensions of retired city police officers and firefighters.

If Harrisburg’s bankruptcy filing stands, it would mark the largest municipal filing since Vallejo, Calif., did so in 2008. For years, Harrisburg has been struggling under a heavy debt burden, more than $300 million of which is connected to an incinerator project that turned into a financial debacle...."

Where is this headed? Is it a sign of things to come?

Where will the bailout come from? Will property taxes skyrocket?
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Old 10-13-2011, 04:51 PM
Status: "But in the aggregate..." (set 28 days ago)
 
Location: The Triad (NC)
31,333 posts, read 69,492,784 times
Reputation: 37344
Quote:
Originally Posted by newenglandgirl View Post
"...as a growing number of municipalities across the country are struggling..."
Where is this headed?
Reduction in municipal/county/state services...
and general refusal to take responsibility for unfunded mandates.

Quote:
Will property taxes skyrocket?
Unless (or until) income tax revenues are restored... you betcha.
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Old 10-13-2011, 05:05 PM
 
Location: Near a river
16,042 posts, read 20,047,358 times
Reputation: 15719
Quote:
Originally Posted by MrRational View Post
Reduction in municipal/county/state services...
and general refusal to take responsibility for unfunded mandates.

Unless (or until) income tax revenues are restored... you betcha.
How is Raleigh doing?
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Old 10-13-2011, 05:37 PM
Status: "But in the aggregate..." (set 28 days ago)
 
Location: The Triad (NC)
31,333 posts, read 69,492,784 times
Reputation: 37344
Quote:
Originally Posted by newenglandgirl View Post
How is Raleigh doing?
No idea; I don't live there.
Check their paper? News, Sports, Business, Politics - Raleigh, Durham, Chapel Hill | The News & Observer
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Old 10-13-2011, 06:34 PM
 
Location: NJ
18,668 posts, read 18,079,192 times
Reputation: 7284
All will need to take a haircut.
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Old 10-13-2011, 06:51 PM
 
Location: Near a river
16,042 posts, read 20,047,358 times
Reputation: 15719
Quote:
Originally Posted by bobtn View Post
All will need to take a haircut.
Looks like some municipalities will become bald.
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Old 10-13-2011, 08:34 PM
 
2,515 posts, read 1,818,779 times
Reputation: 362
Quote:
Originally Posted by newenglandgirl View Post
Where is this headed? Is it a sign of things to come?
What yo0u are looking at is the end game of moving our manufacturing base to china with it gone we done have the tax base that came with it. The federal government is borrowing 45% of the money it spends. Now if it looked like things were going to improve any time soon that wouldn't so bad, but... Housing is expected to be in a major slump for the next decade at least. This means no home equity loans to pump the economy up with.

Quote:
Originally Posted by newenglandgirl View Post
Where will the bailout come from? Will property taxes skyrocket?
If you want a bailout then look to the minimum wage. We can get a lot more taxes if we up them minimum wage to $30hr. Bailout main street. Print a bunch of money and give it to everyone.
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Old 10-13-2011, 08:47 PM
 
5,725 posts, read 9,109,064 times
Reputation: 7981
Quote:
Originally Posted by newonecoming2 View Post
What yo0u are looking at is the end game of moving our manufacturing base to china with it gone we done have the tax base that came with it. The federal government is borrowing 45% of the money it spends. Now if it looked like things were going to improve any time soon that wouldn't so bad, but... Housing is expected to be in a major slump for the next decade at least. This means no home equity loans to pump the economy up with.

If you want a bailout then look to the minimum wage. We can get a lot more taxes if we up them minimum wage to $30hr. Bailout main street. Print a bunch of money and give it to everyone.
ANd a Big mac will cost $100

Can't we (just ONCE) learn from history!
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Old 10-13-2011, 09:00 PM
 
48,508 posts, read 88,440,292 times
Reputation: 18187
The major probelm will be Bond rating to do project which can make huge differences in projects cost like infrastruture. Low rating'huge differences in final cost and higher taxes to pay for the difference.Things like mandated sewer improvements from health hazards can over rule doing projects to attract business and improve neighborhoods.You can actually lose equipment need to maintain abascia service breakdowns by departments.
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Old 10-14-2011, 05:25 PM
 
Location: San Diego California
6,797 posts, read 6,625,449 times
Reputation: 5180
The problem with municipality’s budgets is one that will grow considerably in the next decade due to pension obligations for workers due to retire.
Many municipalities have agreed to lavish pensions and benefits based on over optimistic portfolio projections for their retirement funds.
The shortfalls are going to be huge, and in many cases, the taxpayers are going to be on the hook for the difference.
Politicians are in a position of either facing the wrath of voters if they try to raise taxes, or filing bankruptcy and reneging on their obligations to retired workers.
Very ugly situation.
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