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Uncle Bill
03-03-2012, 07:37 PM
...of pure lunacy? Try this! It has to rank right up there. UB

How Liberals Do Accounting – Why Scott Walker was Right!









http://sayanythingblog.com/files/2012/03/SEIU-Strike.jpg (http://sayanythingblog.com/files/2012/03/SEIU-Strike.jpg)

With a straight face, the NY Times (http://www.nytimes.com/2012/02/28/nyregion/to-pay-new-york-pension-fund-cities-borrow-from-it-first.html?_r=1&scp=1&sq=pension%20borrowing&st=cse) describes how the state of New York and local and county governments have solved the problem of making payments they cannot afford to the pension fund for state and municipal retirees. They borrow the money from the pension fund to make their payments to the pension fund!

When New York State officials agreed to allow local governments to use an unusual borrowing plan to put off a portion of their pension obligations, fiscal watchdogs scoffed at the arrangement, calling it irresponsible and unwise.
Doh!

And now, their fears are being realized: cities throughout the state, wealthy towns such as Southampton and East Hampton, counties like Nassau and Suffolk, and other public employers like the Westchester Medical Center and the New York Public Library are all managing their rising pension bills by borrowing from the very same $140 billion pension fund to which they owe money.
This is like me taking a cash advance from American Express to pay my monthly American Express bill. And people who do that invariably wind up in bankruptcy court.

Across New York, state and local governments are borrowing $750 million this year to finance their contributions to the state pension system, and are likely to borrow at least $1 billion more over the next year. The number of municipalities and public institutions using this new borrowing mechanism to pay off their annual pension bills has tripled in a year.

The eagerness to borrow demonstrates that many major municipalities are struggling to meet their pension obligations, which have risen partly because of generous retirement packages for public employees, and partly because turbulence in the stock market has slowed the pension fund’s growth.

The state’s borrowing plan allows public employers to reduce their pension contributions in the short term in exchange for higher payments over the long term. Public pension funds around the country assume a certain rate of return every year and, despite the market gains over the last few years, are still straining to make up for steep investment losses incurred in the 2008 financial crisis, requiring governments to contribute more to keep pension systems afloat.
While the sheer lunacy of all this sinks in, bear in mind that the same staunch liberal defenders of public employee unions and their exorbitant retirement packages are also the ones telling us that the rise in the stock market these past few years is indicative of just how successful the Obama economic recovery has been. Talk about witless hypocrisy!

Right now, the three most financially derelict states are California, Illinois, and New York. Not surprisingly, all three controlled by liberals. At this rate, it shouldn’t take New York very long at all to move to the top of the list.

mngundog
03-03-2012, 08:06 PM
Remind me again why he didn't include the police and fireman unions in his deal. How's Walkers recall going?