January 13, 2012

Worried about Jahn

Please please be sititng when you read this article in the Telegram


Anonymous said...

In case JAHN couldn't open the link:

Report: Worcester, Fitchburg have unfunded liabilities for retired workers

BOSTON — Ten of the state’s cities have a total of $4.5 billion in unfunded liabilities for retired city workers’ health care, according to a report today from the Massachusetts Taxpayers Foundation.

The group is reporting that the liabilities average $13,685 per household in the 10 cities. In Worcester, the liabilities average out to $11,597 per household. In Fitchburg, they average out to $13,390 per household, the foundation said.

The report states that Worcester cut nearly $400 million from its unfunded retiree health care liability in the 2010 fiscal year but still has a $765 million unfunded liability that is unaffordable.

The Massachusetts Taxpayers Foundation is a nonprofit research organization that has advocated for changes in health care benefits for municipal workers.

Anonymous said...

Gee, imagine if the city had put that $400 Million into Allegiant stock when it IPO'd back in January 2007 at $18/share? It closed at $53.18 today ...damn charlaitans !!!!!

Woo's financial mess could have been solved by investing in the lone airline that flew in and out of Worcester at the time! You all can do the math...

Sorry, I had to get that dig in there...

Harry T

Anonymous said...

Speaking of Worcester airport, did you hear Howie Carr's latest dig at Worcester? ... and I quote...

“But somehow things never really work out for the Worcester hacks. They’re just not quite ready for prime time … they do OK for a while, but once they get inside the red zone, they stall out and have to settle for a field goal, or Massport”

Harry T

Anonymous said...

...and during the WORST recession/recovery since the Great Depression no less... losing Allegiant was a fiasco of epic proportions...

Harry T

Jahn said...

Anonymous, TY for posting the article.

Randell, you know how to raise guys blood pressure & ruin a weekend all with a simple thread.

I have raised this issue here before and knew it was somthing like $600M, but $765M or $600M, whats few mill between friends.

Dare I ask how Worc cut $400M from the obligation in 2010? I mean Worc's budget is something like $500M per year and we cut $400M from this liabilty in 2010. Thats a new one on me. Where did the money come from for that? I am getting sense of some fanciful bookkeeping. Yes the stock market was up in 2010, but was it enough to slash $400M from this unfunded liabilty.

Interesting, no mention of unfunded pension liabilities, just unfunded retired workers health ins. costs? This piece is confusing as it starts off talking about unfunded LIABILITIES (does this include pensions too?). Then it immediately starts talking about unfunded retiree health ins liabilties?

The city has been technically bankrupt for years now, yet the beancounters still give the city a clean bill of health annually????????

Notice how they state Worc's liabilty at $12K per household. I wonder what that works out to per house? Real estate taxes are assessed per house, not per household. More subtle subterfuge and fancy footwork to downplay the reality of the figures. They almost want us to believe that Pajama Peope Households actually count toward trying to reduce the per house liability. SO, I guess a 3 decker has a liablity of $35K

Apparently, they also fail to take account of the fact that Houses arent the only taxpaying real estate. Last I knew we still have businesses that also pay RE taxes? To divide the Health care liability only by the number of households just leads to a meaning less figure, when Business RE taxes arent factored in as well as other city revenues.

Not to worry though if Obumacare survives the health ins liabilty will eventually be shifted to the federal gov't when all insuarnce co's are eventually driven out of business. This will happen b/c the cost to employers will become so great, employers will be forced to opt out of private health ins plans into some form of nat'l health insurance. Same will happen with current city employee health ins. So Worc taxpayers will eventually see the health ins cost for Worc go to zero, which will result a huge reduction in property taxes. Right? Wrong! The CC will spend the savings elsewhere.

UNless Mitt gets in :). He will undo Obamacare. Here's to hoping he's right, but I have a suspicion he will find it's not that EZ or even possible.