"The Stockton Syndrome" Underfunded Pensions

California laws granting immense union monopoly power to union officials is creating cracks, fissures, and collapse across the state.  One manifestation of the growing problem is a pension crisis coming to a head as the city of Stockton faces pending bankruptcy. The Investor Business Daily notes: As one California city slogs toward bankruptcy, others may soon try to avoid the same fate by passing pension reforms — that is, if a pro-union state government will let them. The financial problems plaguing many of the nation's [Big Labor Boss-run] cities are taking a particularly heavy toll on Stockton, Calif., a blue-collar port city that struggles even in good times. Stockton is also a cautionary tale on how not to run a city. It seems to have committed just about every fiscal sin known to local government.In those infrequent years when things were good, it spent (and promised) like there was no tomorrow. Now tomorrow has come, and the city is broke. Its spiffy sports arena and its new $35 million high-rise city hall won't help it pay its debt. That debt includes, but is not limited to, a $400 million liability for its retirees' health care. It also has had to cut its police force by almost a third.

Union's Keep Pushing Taxes Higher in California

Who can forget the Chicago Teachers Union Activist above, but that attitude does not seem to be exclusive to Illinois.  California Gov. Jerry Brown is pushing a new scheme to force tax increases on the taxpayers in the Golden State and not surprisingly, it is the teacher's union pushing the plan behind the curtain?  From the OCRegister: Gov. Jerry Brown says the odds improved last week that voters will approve tax increases in November because he and the California Federation of Teachers merged their separate tax-raising schemes into one. This was not a compromise. Mr. Brown caved in to union pressure. Public employee unions were major financial backers of the governor's 2010 election campaign. In seeking huge tax increases to pay for government spending, he is doing unions' bidding. By merging initiatives, Mr. Brown agreed to reduce the increase he sought in the sales tax from a half cent to a quarter cent. But he agreed to seek a larger income-tax increase tax on more-affluent taxpayers. The new initiative would raise the top tax rate by 1 percent for those earning $250,000, 2 percent for incomes exceeding $300,000 and 3 percent on $500,000 and more. The state's top rate already is 10.3 percent, for those earning $1 million a year. The combined initiative is projected to raise $9 billion compared with the $7 billion the governor previously proposed. The tax increases would last seven years, rather than the previous five years.

Union's Keep Pushing Taxes Higher in California

Who can forget the Chicago Teachers Union Activist above, but that attitude does not seem to be exclusive to Illinois.  California Gov. Jerry Brown is pushing a new scheme to force tax increases on the taxpayers in the Golden State and not surprisingly, it is the teacher's union pushing the plan behind the curtain?  From the OCRegister: Gov. Jerry Brown says the odds improved last week that voters will approve tax increases in November because he and the California Federation of Teachers merged their separate tax-raising schemes into one. This was not a compromise. Mr. Brown caved in to union pressure. Public employee unions were major financial backers of the governor's 2010 election campaign. In seeking huge tax increases to pay for government spending, he is doing unions' bidding. By merging initiatives, Mr. Brown agreed to reduce the increase he sought in the sales tax from a half cent to a quarter cent. But he agreed to seek a larger income-tax increase tax on more-affluent taxpayers. The new initiative would raise the top tax rate by 1 percent for those earning $250,000, 2 percent for incomes exceeding $300,000 and 3 percent on $500,000 and more. The state's top rate already is 10.3 percent, for those earning $1 million a year. The combined initiative is projected to raise $9 billion compared with the $7 billion the governor previously proposed. The tax increases would last seven years, rather than the previous five years.
Wisconsin Reality vs. Illinois Gov. Pat Quinn's

Wisconsin Reality vs. Illinois Gov. Pat Quinn's "Reality Rendezvous"

Imagine what would happen in Wisconsin if they gave private sector employees the same freedoms. "Our rendezvous with reality has arrived."  That is what Illinois Governor Pat Quinn said this week as he unveiled his state budget.  Their economic slap in the face comes nearly one year after we took steps to get our fiscal house in order. As we were passing legislation requiring state employees and teachers to make modest contributions to their health insurance and pensions to help offset necessary cuts, Quinn and Democrats in Illinois passed massive tax increases. I told you then that our path, although a more difficult one, was the correct path to take.  Now, it couldn't be more clear that we were right.  We closed a massive $3.6 billion budget deficit without raising taxes and without massive layoffs. Illinois, meanwhile, is in even more economic peril because of  tax increases that clobbered their families and businesses.  To try to fix the mess he created, Governor Quinn is out with a budget that proposes the closing of numerous prisons, 60 state offices, laying off 1,100 state employees and cutting Medicaid by $2.7 billion. It's so bad that $8 billion in bills would still go unpaid and state worker pensions costs will rise by more than $1 billion.  Even faced with that, Quinn and Illinois democrats are refusing to tackle the issue, instead calling on "task forces" to be created to look into ways to reign in skyrocketing health care and pension costs.
Wisconsin Reality vs. Illinois Gov. Pat Quinn's "Reality Rendezvous"

Wisconsin Reality vs. Illinois Gov. Pat Quinn's "Reality Rendezvous"

Imagine what would happen in Wisconsin if they gave private sector employees the same freedoms. "Our rendezvous with reality has arrived."  That is what Illinois Governor Pat Quinn said this week as he unveiled his state budget.  Their economic slap in the face comes nearly one year after we took steps to get our fiscal house in order. As we were passing legislation requiring state employees and teachers to make modest contributions to their health insurance and pensions to help offset necessary cuts, Quinn and Democrats in Illinois passed massive tax increases. I told you then that our path, although a more difficult one, was the correct path to take.  Now, it couldn't be more clear that we were right.  We closed a massive $3.6 billion budget deficit without raising taxes and without massive layoffs. Illinois, meanwhile, is in even more economic peril because of  tax increases that clobbered their families and businesses.  To try to fix the mess he created, Governor Quinn is out with a budget that proposes the closing of numerous prisons, 60 state offices, laying off 1,100 state employees and cutting Medicaid by $2.7 billion. It's so bad that $8 billion in bills would still go unpaid and state worker pensions costs will rise by more than $1 billion.  Even faced with that, Quinn and Illinois democrats are refusing to tackle the issue, instead calling on "task forces" to be created to look into ways to reign in skyrocketing health care and pension costs.
Big Labor 'Medicine' Making Illinois Sicker

Big Labor 'Medicine' Making Illinois Sicker

Union-label Illinois Gov. Pat Quinn has run up his state's public spending and debt to Greece-like levels. Credit: www.chicagonow.com Compulsory-Unionism Stronghold State Drowning in Taxes and Debt (source: National Right To Work Committee February 2012 Newsletter) In early 2012, as the national economy continues struggling to recover from the severe 2008-2009 national recession, many states are in financial dire straits. But Big Labor-dominated Illinois is very arguably the worst fiscal basket case of all. Early last month, Moody's Investors Service downgraded Illinois debt to A2, finding its creditworthiness to be the worst of any of the 50 states, including even government union-controlled California. In its report, Moody's specifically berated Illinois's "weak management practices." On January 22, a Chicago Tribune editorial observed: "Deadbeat Illinois owes some $8.5 billion in old bills, tax refunds, employee health insurance and interfund borrowing debts. That's roughly one-fourth the state's spending this year from its general funds." Over and above that, Illinois has "nearly $200 billion in debts and unfunded obligations." Burdened by labor policies authorizing union monopoly bargaining and forced union dues and fees in both the private and public sectors and a tax and regulatory climate that are hostile to private-sector job and income growth, the Prairie State has been in trouble for a long time. Big Labor 'Cure-All' For Rapidly Rising Government Debt: Massive Tax Hikes But Illinois's outlook grew even bleaker after union-label Democratic Gov. Pat Quinn and like-minded legislators acted in January 2011 to put the state, in the governor's words, "back on sound fiscal footing."
Big Labor 'Medicine' Making Illinois Sicker

Big Labor 'Medicine' Making Illinois Sicker

Union-label Illinois Gov. Pat Quinn has run up his state's public spending and debt to Greece-like levels. Credit: www.chicagonow.com Compulsory-Unionism Stronghold State Drowning in Taxes and Debt (source: National Right To Work Committee February 2012 Newsletter) In early 2012, as the national economy continues struggling to recover from the severe 2008-2009 national recession, many states are in financial dire straits. But Big Labor-dominated Illinois is very arguably the worst fiscal basket case of all. Early last month, Moody's Investors Service downgraded Illinois debt to A2, finding its creditworthiness to be the worst of any of the 50 states, including even government union-controlled California. In its report, Moody's specifically berated Illinois's "weak management practices." On January 22, a Chicago Tribune editorial observed: "Deadbeat Illinois owes some $8.5 billion in old bills, tax refunds, employee health insurance and interfund borrowing debts. That's roughly one-fourth the state's spending this year from its general funds." Over and above that, Illinois has "nearly $200 billion in debts and unfunded obligations." Burdened by labor policies authorizing union monopoly bargaining and forced union dues and fees in both the private and public sectors and a tax and regulatory climate that are hostile to private-sector job and income growth, the Prairie State has been in trouble for a long time. Big Labor 'Cure-All' For Rapidly Rising Government Debt: Massive Tax Hikes But Illinois's outlook grew even bleaker after union-label Democratic Gov. Pat Quinn and like-minded legislators acted in January 2011 to put the state, in the governor's words, "back on sound fiscal footing."