Bankruptcy would be the best thing for the city (San Diego: lawyers, taxes)

[jimhcom]

. The budget blunders including the pension fiasco threaten San Diego's future and insure higher taxes, less services, and infrastructure decay for decades to come.
The best solution for the City at this point is to accept the fact they have screwed the pooch and declare bankruptcy.
Bankruptcy would allow Judges and Lawyers trained in bankruptcy and budget matters, to examine the city contracts and to set aside the one's that are financially irresponsible. This is something the pandering politicians have either the courage or ethics to do.
It is also important that the citizens refuse any new taxes and fees aimed at kicking the can down the road. The situation needs to be dealt with here and now.

[cruitr]

Bankruptcy won't relieve the city of its pension obligations.

[jimhcom]

Originally Posted by cruitr

Bankruptcy won't relieve the city of its pension obligations.

Those contracts can be set aside or re negotiated the same as any other. It is up to the Judge.

[BacktoBlue]

and you are?

Never seen you around here before.

[cruitr]

Originally Posted by jimhcom

Those contracts can be set aside or re negotiated the same as any other. It is up to the Judge.

Do you have any examples where a gov't entity filed bk and the judge tossed out pension obligations?

[1AngryTaxPayer]

Originally Posted by cruitr

Do you have any examples where a gov't entity filed bk and the judge tossed out pension obligations?

Austerity, more and more common.

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[Anak]

Bankruptcy is the right answer.

You can bet the unions will never let it happen the right way though.

[Traal]

Just offer to cash out pensions for 50 cents on the dollar. If that still isn't enough, then declare bankruptcy. The people who didn't cash out would then lose their entire pensions, so if I were a city employee and were offered 50 cents to the dollar on my pension, I would take it and put it into an IRA.

[jimhcom]

Originally Posted by cruitr

Do you have any examples where a gov't entity filed bk and the judge tossed out pension obligations?

A city is a corporation, and has the same right to pension relief as any other corporation.
Up until now it has not been necessary to go that far, but up until now debt obligations have been manageable. Now it is different.
It is government’s duty to do what is best for the majority of the people. That is why they can condemn your property and use it for public use.
When librarians are receiving larger retirements than 4 star generals, there is clearly abuse in the system.
We can clearly not expect the Mayor, City Counsel, or the City Attorney to act on this, as they have a vested interest and their pensions are affected. The only way to have fair resolution in this matter is to have a Federal Judge who has impartiality, decide what is equitable for the workers and the citizens. But for some reason that scares the City workers to death. Go figure.

[skeke]

There was a city in Northern CA that declared bankruptcy, Vallejo I think, not sure. Read later that it did not help the city, but made things worse. Anyone know more about that outcome?