Desperate politicos often tell the public that "there's nowhere to cut" in the Kansas City budget and financial obligations are "locked in" with little option for debt relief other than constant tax increases. Now, as the specter of coronavirus devastates finances across the globe; city hall is finally coming to terms with the perilous task of pension reform in order to advert inevitable bankruptcy.
To wit . . .
TOP ECHELON INSIDERS REVEAL THAT PENSION REFORM IS NOW DEMANDED GIVEN CRUSHING DEBT THREATENING TO BANKRUPT KANSAS CITY!!!
Here's the word . . .
"It's now or never. And if not now, the bond holders are going to force it eventually with terms much crueler than what the mayor's office is willing to commit. Pensions are now a thing of the past and this week the city's financial network finally gave the ultimatum to mayor and council: Start cutting pension obligations or risk 2021 bankruptcy."
Here's just a peek at how much money is at stake . . .
KCMO pensions account for about 15% of budget obligations right now . . . Pensions were underfunded by more than $733 million when the last fiscal year ended in April 2018. In 2019 the liability number rose to $787,888,848.
And so, because it's worth repeating . . .
FINANCIAL REPS FOR KCMO DEMAND PENSION REFORM AND WARN THAT WITHOUT IT THERE'S SIMPLY NO WAY FOR CITY HALL TO AVOID BANKRUPTCY!!!
Just a bit more explanation . . .
And again, according to TOP ECHELON INSIDERS watching this same scenario play out across the nation . . .
Here's the word . . .
"There's a bright side here, we can start by grandfathering in these reforms in order to honor KC's commitment to public safety first responders. But going forward, KC simply can't afford to maintain our extravagant pension offers and any new hires are going to have to come in under a new benefit plan. It's either that or risk blowing up the entire system and plunging KC into the financial abyss."
As politicos get this news, they're attempting to hurry legislation before the urgency of the pandemic passes.
And of course there's a serious political downside here for everyone running for elected office or with hope of a political future . . . Therein lies the rub and a question that remains unanswered . . .
WILL FIREFIGHTERS AND CITY HALL WORKERS ALLOW PENSION REFORM WITHOUT A FIGHT OR SINK KCMO INTO ECONOMIC OBLIVION IN ORDER TO PROTECT FUTURE WORKERS?!?!
This is a contentious debate that's starting VERY SOON at 12th & Oak and whilst the public remains blissfully ignorant of the financial crisis already underway.
Meanwhile, we have more EXCLUSIVE INFO on the looming KCMO bankruptcy and the path to rescue this cowtown without sacrificing police protection first.
Developing . . .