Monday, September 02, 2019
TKC LABOR DAY SPECIAL: TRUMP RECESSION AND PUBLIC SAFETY PENSIONS THREATEN TO BANKRUPT KANSAS CITY!!!
During one of the greatest bull markets and economic booms in American history, Kansas City's budget remains "structurally unbalanced" and unsustainable without dramatic increases in taxes and rate hikes on an electorate skeptical of 12th & Oak promises.
Don't worry, it gets worse . . .
On this Labor Day as Americans salute some of the most indefatigable members of our society. Hard fought pension obligations to valiant public safety workers also serve as an albatross around the neck of local government and the financial risk of disaster increases every day. Moreover, the prospect of recession could send this town into economic oblivion.
We don't need any insider to confirm this one, it's part of the public record that's ignored by most politicos, journalists and bureaucrats.
The basics of the budget show Kansas City spending outpacing revenue in the best of times.
Even Republicans are getting nervous about Prez Trump & the economy.
A recent pension task force offered dire warnings that circulated around City Hall and nowhere else.
The upshot . . .
ANY SIGNIFICANT DECLINE IN REVENUE FROM A RECESSION THREATENS TO PLUNGE KANSAS CITY INTO A VERY QUICK DEFICIT AND BANKRUPTCY!!!
Think that it can't happen here???
From Stockton, Cali to Harrisburg, PA . . . Tax & spend politicos were confident about their financial fortunes right up until the point they were forced to kneel before bankers and beg debt forgiveness. So far nearly a dozen American cities have filed very real and very horrific bankruptcies, as usual Kansas City wouldn't be doing anything special by joining the club.
Nevertheless, the political reality is that public safety employees aren't giving up their pensions any time soon and we don't blame them one bit for this fight.
Behind the scenes, the police "local control" debate isn't as much about social justice as it is a clandestine effort for KC to get its hands on cop cash -- This was confirmed by former Councilman Ed Ford in public during a library conversation not so long ago. His candid and confident remark about 12th & Oak moving to control po-po retirement money inspired gasps of terror and a chill over the audience of otherwise tough and battle-tested police.
Accordingly, make no mistake that our TKC blog community respects the contribution of organized labor to the local discourse, American freedoms and our standard of living. But there's no denying the rising costs of old school pensions prized by labor advocates which now threaten to plunge this town into financial ruin.
Anybody who pretends to have answers is lying as the only strategy on which KCMO relies upon is continued prosperity and taxpayers easily tricked by crafty marketing.
Check the links . . .
CBS: Labor Day celebrates workers — but not everyone's winning
Pitch: Kansas City’s mayoral candidates on funding municipal employee pensions
Forbes: No, Public Pension Reform Experiments Have Not Failed
Fox Biz: Public pensions returns lowest in three years
Seeking Alpha: Blame The Fed For The Coming Pension Fund Crisis
Newsweek: Labor Day 2019: Where Did 'No White After Labor Day' Come From?
CNN: America is facing a pension crisis. Retirees will pay the price if we don't act now
You decide . . .