Athena and I have been having the discussion about government accounting playing hide-the-salami when it comes to liabilities. Specifically, the coming deluge of pension system obligations. Again, we're no experts, but it doesn't take a rocket surgeon to see the craters in the road ahead. In an odd showing of competence the New York Times laid this out pretty well last Wednesday. As if to piggyback on the theme the city of Vallejo filed for bankruptcy yesterday. Why? "....the cost of ballooning public safety employee contracts"
This is not mystery math. A high school freshman with a calculator can look at X number of employees with X number of years of service retiring a X percentage of annual salary and compute accordingly. San Diego actually had a bit of a dust up about this a few years before their pension system led them into bankruptcy. A city councilwoman had the audacity to suggest the system was out of balance. Her reward was fellow councilmen recommending her for psychological evaluation. I think her new last name is Vindication. This type of flapping incompetence is one of the reasons I'm not a "lifer" at my current employer. We're just starting to climb this hill. More to follow.
This is not mystery math. A high school freshman with a calculator can look at X number of employees with X number of years of service retiring a X percentage of annual salary and compute accordingly. San Diego actually had a bit of a dust up about this a few years before their pension system led them into bankruptcy. A city councilwoman had the audacity to suggest the system was out of balance. Her reward was fellow councilmen recommending her for psychological evaluation. I think her new last name is Vindication. This type of flapping incompetence is one of the reasons I'm not a "lifer" at my current employer. We're just starting to climb this hill. More to follow.
Ares
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