Regardless of the cost to taxpayers, and even though their bloated benefit programs vastly exceed what the private sector gets, nothing will get in the union's way of protecting the overgenerous benefits they have, while still demanding more money from taxpayers, no matter what fiscal shape any of the cities are in because of those contracts.
Assembly Bill 155 Places Hurdles On Bankruptcies
Sadly, California's corrupt politicians, bought and paid for by the unions, are all too willing to go along with a Scheme to Bar City Bankruptcies.
A bill that clamps down on municipal bankruptcy filings is headed for Gov. Schwarzenegger's desk, which is bad news for Los Angeles and other cash-strapped California cities.Union Parasites and Corrupt Politicians Cause Devastation
It the governor signs Assembly Bill 155, it would place a hurdle in the path of filing for Chapter 9 municipal bankruptcy. The bill stipulates that a city may only file for bankruptcy with the approval of the California Debt Investment Advisory Commission, which provides information on debt to public agencies.
"California's taxpayers who rely on public safety, senior, park and library services, as well as those who own and operate businesses in our communities, deserve every effort that state and local government can make to avoid the long-term devastation of bankruptcy," the bill says.
In particular, the bill says it intends to protect retirement pensions and health benefits for public employees, which would be disrupted and renegotiated in the wake of bankruptcy.
This could have a direct impact on the state's largest city, Los Angeles, which is facing a huge budget shortfall. The city's former mayor, Richard Riordan, is calling for bankruptcy as the current mayor, Antonio Villaraigosa, is proposing deep cuts to city payrolls, according to news reports.
Bankruptcy does not cause long-term devastation. Forever increasing taxes to support union parasites does.
Given that one cannot negotiate with parasites, mosquitoes, termites or other pestilence, the only reasonable solution is to exterminate them. Public unions need to be made illegal, and every service imaginable immediately outsourced to non-union shops.
Public unions are the problem and bankruptcies are one solution. If Schwarzenegger has an ounce of common sense he will veto this bill.
Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com
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