General28 Jul 2012 10:59 pm

Interesting article today in the SF Chronicle about Oakland’s PFRS pension obligation.

My opinion is that Oakland should essentially go bankrupt as soon as possible. At this point, only a couple cities in California have taken this step. That mean’s there is still an opportunity to get a fairly good deal out of a bankruptcy.

Later, that’s going to change. You can be sure that unions will do their level best to prevent cities from right-sizing their expenses for things like benefits and pensions.

One thing I really enjoyed about the article was that it quoted someone — Nita Balousek – who is 55 and whose husband retired as a cop something like 17 years ago, after working 27 years.

That’s preposterous! That means this lady was 38 years old when her husband retired. And I guess she was 11 when he started working as a cop?

So let’s say she lives to age 88. We have to pay her for 50 years of retirement for a guy who worked here for 27 years? How is that sustainable.

Time to declare bankruptcy and move on.

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One Response to “Oakland Moves Ever Closer To Bankruptcy”

  1. on 29 Jul 2012 at 5:23 pm mark ross

    Let the dominos fall. The same article said that to avoid a ca. $38 million payment for the pension, the geniuses who run Oakland used a bond instead that cost (with interest) ca. $115 million. The whole freakin’ state is circling the drain… while the rest of the US is recovering… step by step.

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