Monday, April 20, 2020
KANSAS CITY PENSION BURN RATE WORSENS & CORONAVIRUS WON'T HELP!!!
Some of the smarter denizens of our blog community are thinking about how this pandemic will continue to impact municipal finances in the near and long term.
To be fair . . .
The "burn rate" is typically used to describe the rate at which a new company is spending its venture capital to finance overhead before generating positive cash flow from operations. But in this instance we appropriate the relatively new term to describe the increasingly negative cash flow and structurally imbalanced Kansas City budget where EPIC pensions threaten to bring the whole thing crashing down as this cowtown confronts dramatically reduced revenues.
Here's the word:
KCMO below average
TKC, take a look at the shrinking number of plan participants to support those receiving benefits.
Below average rate of return on investment portfolio for annualized 5-year and 10-years.
This type of information gets almost no coverage from local media. Probably because they don't understand it . . . And, there isn't any real investigative journalism anymore.
I'll bet you could ask every single media rep in town ..."Who was awarded the contract to manage KCMO public employee pensions, and how did they "garner favor" from the decision makers?"...and no one would have a clue.
You decide . . .