Yes, Dallas is facing bankruptcy. So are three other Texas cities.

[SirLinksALot]

SOURCE: THE AMERICAN SPECTATOR

URL: https://spectator.org/houston-and-dallas-we-have-a-problem/

by  Jon Cassidy


The mayor of Dallas uses the word “bankruptcy,” and the New York Times and Wall Street Journal swoop in to report on the city’s imminent doom.

The mayor of Houston holds a press conference to declare the pension problem solved, and folks just go along with it.

The truth is that the two cities are in equally dreadful trouble, headed for bankruptcy, as are Fort Worth and El Paso, thanks to delusional forecasting, ludicrous system design, and meddlesome union-funded lawmakers from across the state who’ve stripped big-city voters of their right to govern their own finances.

How mismanaged are these city’s pensions?

Take Portland, Oregon, for comparison. Portland has put no money aside for its retired police and firefighters. Zero, ever.

Yet all four Texas cities have bigger pension debt compared to tax revenue than Portland.

Much of Dallas’ recent bad press mentions that the city is now second to Chicago in pension debt-to-tax revenue ratio (Houston was fourth), but this isn’t really new. Crain’s Chicago Business reported that fact a year ago, and Watchdog.org reported on a similar study that put Dallas third in the nation, El Paso fourth, and Houston fifth.

Of the 25 biggest cities in the country, Fort Worth and El Paso tell themselves the biggest official lies about how much money they should be setting aside for pensions, according to a 2016 study by Joshua Rauh, a professor of finance at Stanford University. Then come Los Angeles, Houston, and Dallas on the list of the delusional.

The Times story gets into just how unrealistic Dallas’ plan was: 9 percent investment returns forever and a yearly bill set by state law that didn’t begin to cover expenses.

For the last 10 years, the city’s contributions to the Dallas Police and Fire System haven’t even covered the benefits paid out that year, much less added to the savings for future years, according to the fund’s annual report.

The liability for public safety pensions has reached a staggering $9.5 billion.

But in 2015, the city paid just $115 million into the fund, while the fund paid $283 million in benefits. That sort of imbalance drained the fund’s assets from $3.9 billion in 2013 to $2.7 billion in 2015. Well, that and a half-billion-dollar write-down on bad real estate assets.

The Dallas fund is designed to leak. That’s what’s brought in the national press recently.

CLICK ABOVE LINK FOR THE REST....

[Cripplecreek]

At TOS I warned them when they laughed at Detroit.

They laughed even harder when I said that if anyone bails out Detroit it should be Michigan. And now comes the reason I said it should be Michigan. I knew other bankruptcies were coming and many would be much larger and I don't want the feds bailing out cities and states.

Standing by Rick Snyder saying "Hell No" to a federal bailout was the right thing to do and now I can legitimately say "Hell no" to other cities begging for money.

[SirLinksALot]

. I knew other bankruptcies were coming and many would be much larger and I don't want the feds bailing out cities and states.

So, which other big city do you expect to see bankruptcy occurring?

[Sanguine]

So, which other big city do you expect to see bankruptcy occurring?

Are ANY of them fully-funded?

[Cripplecreek]

So, which other big city do you expect to see bankruptcy occurring?

Short of creative accounting nearly every large city in the country is headed for bankruptcy. Some will survive longer due to better local economies but in the end they will all succumb to the same disease. City governments are especially bad about promising municipal unions the world when they know full well it isn't sustainable. Chicago is in especially bad shape but has had the benefit of Obama dumping billions into the city by various means.

When Rick Snyder asked for $250 million to build highway connections and customs for the new bridge over the Detroit river, Obama would only release the money if $150 million went to union pension funds. Rick Snyder said "No thank you" and now Canada is paying that $250 million on top of the full cost of the bridge.

[IsailedawayfromFR]

Similar article already posted under State of Texas chapter

http://www.gopbriefingroom.com/index.php/topic,236078.0.html

[truth_seeker]

In California Vallejo, Stockton, San Bernardino have already reached points of crisis.

Many others will. the promised pension payouts cannot be funded without tax increases, and voters will likely balk when they see the amounts needed.

California has a system which allows government employees to retire as early as age 50 with 90% of highest pay. PLUS health care for retired worker and then spouse for life.

In effect with techniques of increasing the final years with overtime etc., a retiree draws staggering amounts.

My city has a current police chief, plus two or three previous retired chiefs. Each makes over $200,000 in retirement.

Many police and firefighters make over $100,000 in retirement.

[geronl]

Stop electing spendaholics!!

Bonds are not free money!!