Richmond, CA struggling to keep up with pension payments

Generous retirement pensions are ruining towns all across the state.

Cities are cutting jobs, infrastructure repairs, and school costs in order to keep up with the massive payments.

The city of Richmond has cut about 200 jobs since 2008, which is roughly 20% of its work force.

City leaders were hoping to get a tax raised passed to throw more money at the deficit, but voters rejected that idea in November.

Payments for employee pensions, pension-related debt, and retiree healthcare have jumped from $25 million to $44 million in the last five years.

By 2021, the retirement costs could exceed $70 million, which is 40% of the city's general fund.

$70 million!

Richmond isn't alone.  Vallejo, Stockton, San Bernardino, and Mammoth Lakes have all filed for bankruptcy protection since 2008, and more cities are close to doing the same.

More and more, pension costs are taking up more than 15% or more of a big city's budget, spelling doom for basic services and local governments.

This state is literally crumbling apart because city and state leaders don't know to manage money properly.

It's a disaster!

Read more at the LA Times.

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