Thursday, June 17, 2010

Welcome to San Diego

With the blatant incompetence that has been exhibited by current Mayor Suttle and former Mayor Fahey, Omaha's financial future may be that of bankruptcy.

Increasingly, it becomes evident that former Mayor Fahey gave away the financial future of Omaha to a bunch of union thugs on the fire and police departments who care more about enriching themselves than the future viability of their city.

Mayor Suttle's refusal to deal with these folks should be no surprise as he sat on the council and didn't say a word about the problem until after he was elected mayor and all of a sudden had a "Eureka" moment.

Well, the greed and mismanagement may come to an end that ultimately punishes those who selfishly enriched themselves.

Right now it seems San Diego is experiencing the end stages of where Omaha is headed. Yes, that wonderful community, saddled by greedy union contracts, is now openly looking at Chapter 9 Bankruptcy. Given the greed of the unions and the incompetence of this and the prior administrations Omaha can't be far behind....

Here's what Bloomberg had to say about San Diego's situation:

San Diego May Use Bankruptcy to Roll Back Benefits

By Joe Mysak
The city of San Diego should consider Chapter 9 municipal bankruptcy to help it reduce fringe benefits, pension and health obligations.

That's one of the
suggestions made by the San Diego County Grand Jury, which does the normal duties of recommending indictments as well as reporting on local governments and special districts.

San Diego is the fifth major city in the U.S. this year, and the second in California, where people are talking about bankruptcy as a means to "restructure and reorganize their assets and debts while providing relief from current and future obligations," in the words of the grand jury's 22-page report, published on June 8.

San Diego has unfunded liabilities of $2.2 billion in its pension plan and $1.3 billion for health care, which the report calls "unsustainable."

More than two years of cutting budgets and the mounting public pension crisis have made the unthinkable an option, maybe even an attractive one.

"Municipalities are not required to raise taxes or cut costs to the bone before filing for reorganization under Chapter 9," the grand jury report says, quoting from a presentation at an October 2009, San Diego County Taxpayers Association seminar.

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