Pensions eat 70% of Decatur, Illinois’ budget; New York City’s $76 billion shortfall; Houston Mayor wants pension benefit cuts
The coming battles in 2011 over public pensions will be brass-knuckled death matches. Liberals, progressive, and unions howl that conservatives want states and cities to file bankruptcy so their public pensions can be re-negotiated. This is unquestionably true. But the pensions are unsustainable, with most pension plans being deeply in the red. Those who want to save the pensions better figure out where the money will come from, because it simply isn’t there now.
Me, I think it’s inevitable there will be many such bankruptcies and the entire public pension system will be re-done.