900 MILLION IN PUBLIC PENSION DOLLARS ON AT STAKE:
Yesterday a federal judge ruled that Stockton, CA can proceed with its
bankruptcy reorganization plan -- and that was no April fools decision
either...
"In late June, Stockton became the nation's largest
city to fail financially. At that time, all eyes were on the port city
of 300,000 as experts warned the action could set off a string of similar
filings among cash-strapped municipalities. Since then, a half-dozen
cities have filed for Chapter 9 protection under the U.S. Bankruptcy
Code, including the city of San Bernardino.
During the 90-day
mediation period, Stockton's creditors refused to negotiate unless the
city cut payments to the state pension plan, CalPERS."
Once
again, the public employees' union has leveraged a city into insolvancy
and refused to beudge on its demands to have its pension paid,
regardless of the financial condition of the city.
"At issue will be whether U.S. bankruptcy law trumps California law, which says the pension plan must be funded.
The $900 million Stockton owes to the California Public Employees
Retirement System to cover pensions is its biggest debt -– as is the
case with many cities in California."
This one is a precedent
setter and will most likely be taken to the Supreme Court before all is
said and done. More just like it coming to a town or city near you.
Welcome to the future of Obamaland.
900 MILLION IN PUBLIC PENSION DOLLARS ON AT STAKE:
Yesterday a federal judge ruled that Stockton, CA can proceed with its bankruptcy reorganization plan -- and that was no April fools decision either...
"In late June, Stockton became the nation's largest city to fail financially. At that time, all eyes were on the port city of 300,000 as experts warned the action could set off a string of similar filings among cash-strapped municipalities. Since then, a half-dozen cities have filed for Chapter 9 protection under the U.S. Bankruptcy Code, including the city of San Bernardino.
During the 90-day mediation period, Stockton's creditors refused to negotiate unless the city cut payments to the state pension plan, CalPERS."
Once again, the public employees' union has leveraged a city into insolvancy and refused to beudge on its demands to have its pension paid, regardless of the financial condition of the city.
"At issue will be whether U.S. bankruptcy law trumps California law, which says the pension plan must be funded.
The $900 million Stockton owes to the California Public Employees Retirement System to cover pensions is its biggest debt -– as is the case with many cities in California."
This one is a precedent setter and will most likely be taken to the Supreme Court before all is said and done. More just like it coming to a town or city near you. Welcome to the future of Obamaland.
Yesterday a federal judge ruled that Stockton, CA can proceed with its bankruptcy reorganization plan -- and that was no April fools decision either...
"In late June, Stockton became the nation's largest city to fail financially. At that time, all eyes were on the port city of 300,000 as experts warned the action could set off a string of similar filings among cash-strapped municipalities. Since then, a half-dozen cities have filed for Chapter 9 protection under the U.S. Bankruptcy Code, including the city of San Bernardino.
During the 90-day mediation period, Stockton's creditors refused to negotiate unless the city cut payments to the state pension plan, CalPERS."
Once again, the public employees' union has leveraged a city into insolvancy and refused to beudge on its demands to have its pension paid, regardless of the financial condition of the city.
"At issue will be whether U.S. bankruptcy law trumps California law, which says the pension plan must be funded.
The $900 million Stockton owes to the California Public Employees Retirement System to cover pensions is its biggest debt -– as is the case with many cities in California."
This one is a precedent setter and will most likely be taken to the Supreme Court before all is said and done. More just like it coming to a town or city near you. Welcome to the future of Obamaland.
No comments:
Post a Comment