"Vallejo spends 74 percent of its $80 million general fund budget on public safety salaries, significantly higher than the state average. The generous contracts are the result of deals struck in the 1970s, following a police strike that left the city in turmoil."

Does Portland spend close to this share of the total City budget on P&F?

Sorry, I meant general fund budget...

The City of Portland police and fire pension and disability system currently has a $2.025 billion unfunded liability. That means that if you wanted to put aside enough money now to pay all the benefits in the future, you'd have to pay up that amount.

You wonder what happens to police and fire pensions when a city declares bankruptcy. Is it like the airline pilots, who thought they had a cushy retirement but learned otherwise when their airlines went banko?

If so, you would think the unions would be supporting fiscally responsible candidates for city offices. But it doesn't like that to me.

The City of Portland police and fire pension and disability system currently has a $2.025 billion unfunded liability.

Not to nipick the HUGE size of the FPDR costs, but isn't unfunded liability the cost over time, and the PV of that liability a smaller number?

I don't think so. Check out this article.

I'm gettin' a "You are not authorized to view this article" message."

Huh. That's too bad. Guess I'm "authorized"! But don't ask me why.

8c)

"You wonder what happens to police and fire pensions when a city declares bankruptcy."

That's top line debt that gets paid BEFORE schools, road repairs, etc. I assume that's why they segregate PFDR on your property tax bill to make sure there is NO chance the funds would get commmingled.

Is it just me, or does Sam Adams remind you of Mike Royko's comment about Bob Dole: "He has the unfortunate habit of smiling as if he just evicted a widow"?

Does Portland spend close to this share of the total City budget on P&F?

According to the budget in brief, the City spends 48.2% of its general fund budget on public safety, which includes Police, Fire, the 911 system, and emergency management.

Actually, I am able to see the first page (only) of the article, and you are correct about the PV reference to unfunded liability.

I'm also getting a message about refusing to accept their cookie ($%#* Vista operating system!). BTW, did you go for a PC or Apple? There's an interesting comparison here, with some Microsoft applications running better on the Apple:

http://www.popularmechanics.com/technology/reviews/4258725.html

At least Sam truly has first hand experience in this field. That has to count for something.

Man does that guy look creepy...

The FPD&R charge on your property tax bill goes into a segregated fund dedicated for pension payments only. The tax rate is capped, but I wonder whether or not the general fund is on the hook if the payouts exceed the amount collected under the cap? Anyone know the answer? I know Randy Leonard does - he's the one who dreamed up this scheme.

By the time Portland is ready to file Chapter 9, Tram Boy will be sitting at Earl's old desk in the Rayburn Building.

We'll see how many Federal Fairy Tax dollars are left when the CSO hits the fan. I'm guessing we'll be asked to take a number, and stand in line.

The unfunded retirees have as much skin in the game as the taxpayer: but wouldn't they have perfected rights over the active Fire and Police employees.

Translation: they might be able to force massive layoffs and benefit cuts to active city workers in order to fund the already vested/retired.

Portland: the City that Retired.

You may be able to access the article titled "A Contingent Claims Model for Pension Costs" if you have a Multnomah County library card. Go to http://ipac.multcolib.org/

Jstor is one of the searchable databases.

If you get the "An Error Occurred Setting Your User Cookie" message click on "http://www.jstor.org/?cookieSet=1" then click: "http://www.jstor.org/pss/2490923"

Ahhh...I see "tranparency" is once again running rampant at city hall. NOT!
One could work one's fingers to the bone typing all those internet addresses.
At least if 'Tram Boy goes to Washington' he won't be here!

I looked up then answer to my question above. If the FPD&R payouts exceed the tax revenues collected, the general fund has to pick up the rest of the tab. Portland - we are screwed!