Pensions. Unions. Full-time jobs with benefits. Dinosaurs. What do these four things have in common?
They are all extinct, or soon to be! 🙂
How about the first three? They’re all part of the municipal jobs scene.
We’re confident the City of Oakland employment party is about to end, not with $1,000 bottles of Cristal but in further job slashing, pay cuts, furlough weeks and fee raising. There is a limit though. Homeowners will not be able to pay double what they are paying in property tax. States will not be able to give more money to cities. The Feds, same story in the end.
Politicians are all parents to success, but failures are orphans. Who will our mayor-elect, city council and city residents point fingers at?
The Congressional Budget Office helpfully released a report last week titled “Fiscal Stress Faced by Local Governments.”
ZeroHedge has a nice writeup on it.
The two solutions to fiscal stress CBO lays out are, drumroll please… Default and Bankruptcy!
Until then, expect to see fewer cops on Oakland’s streets, more potholes, less street repaving, and more citizen anti-crime involvement.