The political relevance of Chicago is that of an insane asylum. Continue reading →
Tag / Pensions
Fort Wayne Facing Higher Pension Liabilities
The Governmental Accounting Standards Board (GASB) issued in 2012 new accounting standards for local and state governments to show better transparency in what they owe for pensions. Continue reading →
Top 5 Federal Government Expenditures
Are Indiana Schools Ready for This Major Rule Change?
Some Indiana school districts maybe springing a financial surprise on their taxpayers once this national rule
Obamacare Tax to Hit Retired Police & Teachers in 2018
Whoever wrote Obamacare as a law did a pretty good job in kicking some of the worst parts down the road
Continue reading →
Local & State Pensions About to Change
In 2012 an accounting rule was implemented by the Governmental Accounting Standards Board. The board told local and state municipalities
Indiana Ranked 16th on Fiscal Solvency
Via USA Today –
The Mercatus Center, a public policy research group, ranked the 50 states based on how well each state government planned spending in fiscal 2013 — the most recent year for which data was available — as well as their future financial prospects. from annual budgeting to cash to pay bills, to funding for pensions and long-term plans.
Chicago: Hey, Lets Tax Netflix
Courtesy http://www.frugal-cafe.com
The financial stress of the City of Chicago financial obligations is growing. This week Continue reading →
Pennsylvania Pension Plans Are In Trouble
With a so called “booming” stock market states pension systems are still getting worse. Decades of shady accounting practices and too many promises have made pensions almost broke.
In Pennsylvania there is talk of pension reform after one startling find recently. Here is more from IndianaGazette.com:
Pennsylvania Auditor General Eugene DePasquale warned Friday that the growing collective municipal pension debt in the commonwealth, if allowed to worsen, will become a problem for every Pennsylvanian.
“We found 46 percent of the municipal pension plans in Pennsylvania … are in some level of distress,” DePasquale said. “Certainly the bigger dollar amounts are in Philadelphia and Pittsburgh. … Scranton is very bad.”
City of Chicago Downgraded by Moody’s
Moody’s Investors Service has downgraded Chicago’s debt rating, citing its overwhelming pension burden. Moody’s dropped the city’s rating to Baa2.
A rating of Baa2 is eight notches below the highest debt rating of Aaa.
Moody’s said in its statement its outlook for the city remains negative. A drop of two more notches would make mean the city’s bonds would become“junk” bonds.
“We strongly disagree with Moody’s decision to reduce the city’s credit rating and would note that Moody’s has been consistently and substantially out of step with the other rating agencies, ignoring the progress that has been achieved,” a spokeswoman for Mayor Rahm Emanuel, Kelley Quinn, said in a statement.
Chicago has more than $8 billion in taxpayer-backed general obligation debt, as well as roughly $800 million in additional bonds backed by sales tax and motor fuel tax revenues.
Hoosier Econ 