David Walker, the United States Comptroller General from 1998 to 2008, has been urging sanity back in the national budget-making process through the organization he founded, the Comeback America Initiative. The Black Rock resident and national budget-reform voice has elevated his profile locally on Bridgeport-specific issues including involvement in the formation of a coalition of citizens calling itself “Citizens Working for a Better Bridgeport.” One front-burner issue is rallying support of a state legislative bill proposed by State Rep. Jack Hennessy that seeks to ban city employees from serving on the City Council.
State and federal law prohibit public employees from serving on legislative bodies. The Bridgeport City Charter bans city employees from serving on the legislative branch, but a loophole in state law allows it. Walker, for one, says it’s impossible for the legislative branch to serve as a check on the executive branch when legislative employees work at the pleasure of the mayor. He says it’s not about the personalities involved but an inherent institutional conflict of interest that derails the budget-making process. It’s human nature not to buck the person controlling the paycheck. Six of the 20-member City Council are on the public payroll.
Hennessy’s bill is a long shot for passage with strong opposition from municipal and state labor leaders maintaining mighty contacts among Democratic legislators who count on them for election support. The City Council approves labor contracts. State Rep. Auden Grogins has co-signed Hennessy’s bill, but so far the majority of the city’s eight-member legislative delegation is either silent or not supporting the bill out of fear of alienating unions and political friends on the council. Walker says the group will hold elected officials accountable, with repercussions at the ballot box for officials not embracing government reforms.
Citizens Working for a Better Bridgeport is also focusing on “Bridgeport’s governance practices, financial condition, education system, economic development and public services.”
In addition to Hennessy’s bill the group’s initial areas of interest include “input on the City of Bridgeport’s proposed budget and OPPOSE any increase in total property taxes … Encourage and support the development and adoption of a comprehensive City Charter revision that includes governance, education, financial, and other reforms that will help to create a better future in the City.”
Walker is also urging city and state officials to address the restructuring of unfunded pension liability and retiree healthcare costs that Walker says brings a nearly $1 billion price tag for Bridgeport. Walker says historically elected officials “give away the ranch in deferred benefits that come due when the person is not in office.”
Citizens Working for a Better Bridgeport conducts regular group meetings. For information about getting involved contact Walker at 202-679-0257 or Phil Blagys 203-218-1989, e-mail: Citizens4betterbridgeport@gmail.com.
David Walker is a special guest tonight on the Bridgeport Now TV live program at 8pm, to discuss the new coalition, on channel 88.
Since inception, local politicians have avoided this blog (a handful have posted here but none remain regulars). Last week, David Walker said I was embarrassing myself. That same day others said I was distinguishing myself. Here’s why I’m writing: Deficit spending-Walker’s wheelhouse-hurt Bridgeport more than any city in America. Bridgeport makes an easy target for Walker’s anti-debt rants. I think that’s why he moved here. He seems to have suspended his Comeback America Initiative (CAI) to join the Harborview Coalition. I sense a sea change and journalistic neutrality has never been required here. Count me in.
Why haven’t you invited Local Eyes to the Bridgeport Now TV live program?
Always happy to have a Trumbull resident weigh in on Bridgeport Now–open invitation to Local Eyes as our guest.
David Walker is also urging city and state officials to address the restructuring of unfunded pension liability and retiree healthcare costs that Walker says brings a nearly $1 billion price tag for Bridgeport. Walker says historically elected officials “give away the ranch in deferred benefits that come due when the person is not in office.” Mr. Walker, what those firefighters and police officers who negotiated in “good faith” with City officials for wages and benefits were told by the City it could not pay them higher wages but instead it would provide them with their pension. Bridgeport firefighters and police for the past 20, 30, 40 years have always put their lives on the line for the residents of Bridgeport but during those years they have taken less pay and have paid more for their health benefits. Now Mr. Walker wants to blame firefighters and police for the financial state of the City. I guess the words to negotiated in “good faith” have NO meaning to Mr. Walker.
Ron,
The emotional, high-charged wording “They put their life on the line” is too overworked. Many people in other professions also do.
Remember the fire and police people applied for that particular job, it wasn’t forced on them.
Black Rockin, are you serious when you said, “The emotional, high-charged wording “They put their life on the line” is too over worked. Many people in other professions also do.”? There are 350 Bridgeport firefighters and 400 Bridgeport police officers, now you tell us what other professions put their life on the line like these 750 City workers.
fisherman–the most dangerous job in the country.
www .smartplanet.com/blog/bulletin/the-10-most-dangerous-jobs-in-america/11396
Police officer is #5 and firefighter #8
Most police injuries are car accidents. Only work-related because they were in the police car when they got in the accident, not directly related to any crime-stopping activity. For firefighters it is hurting themselves lifting something. Again, not directly related to fighting a fire. Firemen shouldn’t even be going into burning buildings unless they are reasonably sure someone is inside. They do not ‘save’ the house that is on fire. That house is ruined. What the fire does not destroy the water will. Let’s say your house is not on fire and someone cuts a one-foot hole in your roof and pumps 1000 gallons of water into your attic. Your house is ruined. Firemen only save the houses next door. Still a good thing but it costs the city a fortune every time a firefighter gets hurt on the job and most of the time no one was in the house and the firemen had no reason to suspect anyone was in the house. If you know someone is in the house or you are told someone might be in the house then sure, go in. Otherwise, you are only risking the life of the firefighter for nothing.
Bingo! They apply for these jobs because of the great benefits–not because they “put their life on the line” for Park City residents, stop trying to sell they do it for “honor.” I served in the USMC for 800 bucks a month.
And Bridgeport is still (for the last 12+ years) bankrupt. They spend more than they take in. Geez, that sounds like an awful lot of city, state, and federal governments within the borders of the United States of America …
Ron,
There is a likely financial crash coming sooner than later. You know I have been posting for several years. I talk mainly about fiscal matters or things connected with fiscal matters. I am disturbed by the failure of the CC to learn about or do anything about City fiscal matters AS THE ONLY WATCHDOG BARELY ALIVE like the continuing excessive overruns for the past two years in police and fire overtime accounts. $Five-six million of unexplained overruns of budgeted overtime takes money away from funding the long-term benefits, right? But you are not on that type of issue for the most part. All current and past City employees had better start paying attention today. Talk about rights runs directly into failed responsibilities by those same people you negotiated with years ago. They kicked the can down the road. Many retirees moved out of town. A frequent attitude seems to be who cares anyway as long as I get mine?
My sense of what Walker is saying is there is no capacity to fund the benefits that have been promised in many areas, so it is better to look at the coming crash, get ahead of it and do some serious head work on how to deal today. Messes that attempt to get resolved in a crisis state do not necessarily allow for hearing all sides. We need more people who will get serious about these matters and talk about solutions. How about it? You know history and you care. Will you join in getting potential solutions serious consideration? Will you work to stop the waste of funds currently that could otherwise be used to fund the future promises? Please call me at 203-259-9642. Time for voices to speak up and then to listen well. Time will tell.
Despite our staggering debt, our destiny is in our hands. Nothing’s fixed or determined; everything is fluid and within our grasp. Fiscal matters are a specialty of mine. Stop scaring the blogosphere.
*** Welcome to Mr. Walker and the new Citizens Working For a Better Bpt Coalition. Okay now, did I miss reading the part where Mr. Walker blames the city’s financial woes on the P/D and F/D’s pensions? Or was he merely stating those who attempt to negotiate city contracts today and are gone tomorrow have typically given away the farm by offering outrageous contracts for the future, to only try to save smaller amounts today but down the line, may end up shortchanging those who bargained in good faith because the money may not be there! It does make some sense, no? ***
And Mojo, the farm is not their own to give away is it? It’s a stream of future payments from future taxpayers (especially if we are talking about OPEB healthcare with its pay as you go funding) the terms of which are not necessarily understood by whatever Council approved administration negotiations in the past.
Fairness to all concerned should be an understood element of City contracts. If you intend to live in Bridgeport for the rest of your life, who is the last Mayor who shared the expense of a union negotiation with the public? And when City Council members on the B&A Committee approved the $110 Million Tax Anticipation Note authorization to go on the consent calendar (which means there is no debate on the matter in the Council unless someone moves to separate it from the consent calendar and is supported), it had received no answers to its questions at the meeting from Finance office regarding interest rate, legal expense, marketing costs, etc. Did that info get to the City Council before they voted on consent calendar? It won’t be present in any public set of minutes. Did Council members read, understand and agree? Is this the way decisions have been made by elected representatives, thought to be watchdogs in the past? Is it a model for the future? Time will tell.
Black Rockin,
I’m a little put off by your statement that police and fire personnel “putting their life on the line” is, as you say, “a little overworked.” What a short memory you have. Need I remind you just a little over two years ago Lt. Steven Velasquez and FF Mitch Baik were killed in the line of duty. I will also remind you they were members of Ladder Co. 11 in Black Rock.
Would love for you to explain exactly how “overworked” it is to the widows and children left behind. Shame on you.
I do not recall Mr. Walker even mentioning police and fire fighters–they are not the only people who are paid retirement and medical benefits by the city.
*** There are many who contribute blood, sweat and tears in their own way who work in the city of Bpt; EMS workers, nurses, doctors, corrections officers, emergency room techs, public facilities workers, teachers, school security, etc. just to name a few of many. All contribute to the daily grind and struggle of life with or without pensions in their future! *** RETIREMENT IS JUST A WORD WITHOUT FUNDING FOR SOME! ***
New Legislative Proposal:
If your promised pension has not been funded,</strong) it becomes void and your are forced to accept whatever substitute the legislature provides.
LE,
Will you float that proposal by the Trumbull town government and see what traction it has? Please let us know what sense it makes when a voter like you shares this action, and even recommends it.
In your previous comment you indicated, “everything is fluid and within our grasp” and I thought that may have been descriptive of you standing in a puddle after making your recommendation, perhaps with your hands in your pockets. You have asked me to stop scaring the blogosphere. What do you expect your words to produce? Time will tell.
I didn’t say anything about police and fire plans. The truth is that Our unfunded retirement challenges primarily relate to retiree health care obligations. The police and fire pension plans are funded much better than other plans. All of the City’s retiree health plans are unfunded. They are way too generous, unaffordable, and unsustainable. They must be restructured and the sooner the better if you want Bridgeport’s future to improve. By the way, just ask Bridgeport’s taxpayers how many of them have any employer retiree health plan. An overwhelming majority don’t, and I don’t have one either.
Yours is the only voice of sanity on a national level, and now here on a local level too. It’s a shame fiscally conservative people like yourself and Ron Paul are routinely ignored. The writing is on the wall nationally and locally. We are witnessing the decline of the west, and we did it to ourselves.
Accounting is the language of business. There’s only one thing worse than a liability and that’s an unfunded liability. Unfunded liabilities exist on a Federal, state and municipal level. In that regard, there is nothing special about Bridgeport, making me wonder if David Walker’s motivations are altruistic or political.
You are correct that unfunded obligations exist at every level of government. They need to be addressed along with pursuing pro-growth policies and transforming government to make it more future-focused, results-oriented, affordable and sustainable. With regard to politics, I have no plans to run for political office at this time. I have been recruited many times, but to date, have always declined. Make no mistake, every Bridgeport taxpayer, including my wife and I, has a stake in this fight to create a better Bridgeport. You can’t change things unless you become informed and get involved. I hope you and others do so.
Even my critics think I can’t get more informed or involved than this:
http://www.Exit27A.com
http://www.BridgeportCTUSA.com
http://www.BlackRockCTUSA.com
Mr. Walker, the article stated, “David Walker is also urging city and state officials to address the restructuring of unfunded pension liability and retiree healthcare costs that Walker says brings a nearly $1 billion price tag for Bridgeport. Walker says historically elected officials ‘give away the ranch in deferred benefits that come due when the person is not in office.'” My comments were to that statement.
Here is what you have not addressed, the City has two pension plans for fire and police, Plan “A” and Plan “B,” Plan “B” is a funded pension where the employee pays 2% of their weekly pay towards their pension. The bigger problem is Plan “A” that is unfunded. Plan “A” employees have been paying two and half percent of their pay every week of every year they work. That money goes directly into the City of Bridgeport’s General Fund, it’s not invested, not even in a passbook banking account. The City and every mayor has been taking money firefighters and police officers have paid towards their pension and they have done whatever they wanted. Mr. Walker, the City did not invest or fund for those employees health benefits although that have been taking their money.
So now Mr. Walker, you want to restructured these firefighters and police officers’ pensions?
Ron, Pension Plan A people paid 8%, not 2%.
Here we go again, let’s make the police and firefighters the scapegoats for our financial problems. It happens all the time. The same people blaming firefighters and police are the same people when they see firefighters putting it on the line say I wouldn’t do that job for any amount of money or a police officer who is forced to shoot and kill a felon, same thing.
Let’s clear up a few statements made here. Firefighters enter a burning building to do search and rescue, they also go in to put out the fire and save the property from total destruction. They go in to put out the fire so it does not build and catch other structures.
During my 23 years on the job eight, yes that’s right eight firefighters died in the line of duty. Today as I write this my original shift that had 21 firefighters and officers, there are only three of us still alive.
The billion dollar figure is the unfunded liability which means if the city was forced to pay out everyone at once it would be A BILLION DOLLARS. What amazes me is there is hardly a day that goes by when one of the pension plan A firefighters is not on the obituary page. How many of us are still around?
Andrew C Fardy, thank you for the correction, Plan “A” pays 8% and Plan “B” pays 6% of their pay towards their pension. The two and half percent and the 2% is the percentage for each year they work they would get paid for their pension.
It is not easy to understand the pensions and Plan A. Maybe it could help to look at some of the text from the most recent mention in the Budget and Appropriation Committee meeting from Jan 14. Can someone clarify what this means?
Someone “informed the Committee that the amortization schedule for Pension A had not been settled when the 2011 CAFR report was done. She indicated how this change was handled through the audit process. No one could control this because it was a State decision after the budget was finalized.”
Do you think the amortization schedule and any other part of the agreement negotiated with the State should be public info available at the City Clerk’s office? Do you believe the Mayor and City Council should hold a meeting once a year within one month of the CAFR release, to tell the public about the TEN most important issues revealed citing pages in the report, and then listen to questions from the public AND THEN RESPOND? What any and all of this means is the B&A has been too much in the pocket of the administration rather than acting as a curious watchdog.
By the way, since it has not been mentioned, there is $30 Million annually spent from Police and Fire budgets to fund the Pension Plan A Pension Obligation Bond. This is in addition to whatever actual funds are contributed to the Pension A trust account from which some $32 Million has been withdrawn by pensioners in recent years. When investments lose value, or fixed assets produce no real return because of low interest rates, and $32 Million goes to pensioners, the fund decreases in amount and sustainability. Do you want B&A to look at that? Do you expect the Mayor to share the genius of his deferral process?
Members of the City Council: You have to bark on occasion to be fed with timely info necessary to support your decisions, don’t you? Time will tell.
Mr. Walker, would you please clear up your position on fire and police pensions?
Dave Walker // Mar 6, 2013 at 7:19 am
I didn’t say anything about police and fire plans.
Mr. Walker, the article stated, “David Walker is also urging city and state officials to address the restructuring of unfunded pension liability and retiree healthcare costs that Walker says brings a nearly $1 billion price tag for Bridgeport. Walker says historically elected officials ‘give away the ranch in deferred benefits that come due when the person is not in office.'”
David Walker does talk a lot, never seen him do much.
I agree with James … and frankly I find his arrogance simply amazing. I am not sure what his agenda is but I doubt it is good government for Bridgeport as he was supporting Paul Vallas who we all know works hand-in-hand with Mayor Finch.
James,
Don’t embarrass yourself. You don’t have any experience in my fields and haven’t seen me in action in any of my professional roles. I know that you read a lot. You need to do your homework on me. All the best, Dave.
Dave Walker certainly likes to talk down to people, doesn’t he?
BlackRockGuy,
Sometimes you need to defend yourself when you are unfairly attacked. On occasion, my words will reflect the fact people says things that are factually wrong or grossly misleading. If you knew me, you would know I have a broad cross section of friends and I try to treat all people with respect. That’s how I was elected by the UN General Assembly to be on the first UN Independent Audit Advisory Committee and then by my global peers as Chair. It’s also how I was elected as Chairman of strategic planning for the Global Auditors General Group, as well as many other policy and professional commissions and task forces.
Retiree health plans need to be revised to be comparable to other major employer plans and the related obligations need to be capped like most employer plans. People should not be able to draw two pensions from the same employer. In addition, pensions should not consider overtime, sick time and accumulated leave. These are all standard practice in the real world.
Mr. Walker, let me try this again. You are urging city and state officials to address the restructuring of unfunded pension liability and you are suggesting the answer is pensions should not consider overtime, sick time and accumulated leave? So what about this comment from you, Dave Walker // Mar 6, 2013 at 7:19 am
I didn’t say anything about police and fire plans.
My initial posting did not mention pension and fire plans by name. I stand by all of my comments. My latest comment relates to all pension plans. Does that help?
Dave Walker, you said, “Retiree health plans need to be revised to be comparable to other major employer plans and the related obligations need to be capped like most employer plans.” How does the City do this?
You need to compare the plan design features of these plans with other major employers and then take steps to restructure them accordingly. The City Council is supposed to be representing the taxpayers and this area is a prime example of where they have failed to do so. There is no way the City of Bridgeport can be financially viable over time without restructuring these obligations.
Mr. Walker, these benefits have been agreed upon by the City and the union through collective bargaining, so how do you change these contracts?
In other words because it has become common in the private sector to screw over workers … Mr. Walker thinks we should do this to the cops and firemen who put their lives on the line to keep us safe. Walker’s idea of austerity is only the poor and the middle class should make sacrifices …
In the last NAGE contract or two, retiree health insurance changes when the workers’ health insurance changes. So retirees get the same insurance the workers do. You used to keep the insurance you retired with.
Once you reach a certain age I believe you are shifted to Medicare/Medicaid and that is the only health insurance you have. I am not sure about that.
Dave Walker is dealing in the harsh reality. Ron Mackey and others are citing union contracts that were entered into even though the retiree health insurance component was not sustainable. Who do we blame? Mayors, city council members, unions? Ironically, only one mayor attempted to bring about change.
As a small-business owner and a long-term Bridgeport resident, this argument over City pensions and benefits is overwhelmingly obvious.
Bridgeport politicians have always “bought” Mayoral elections by promising unbelievable packages to police, fire and municipal workers. This was very true when police and fire had to live in the City. That way they got their vote as well as all their family and friends.
(Didn’t police have a something like 30-hour workweek a long time ago?)
The benefits package for City workers (State also) is unbelievable and unsustainable. I do not blame the workers or their leaders. The blame goes to the Mayor and the City Council who signed off on the contracts.
I understand Mackey’s concern but unless we want to see Bridgeport end up in exactly the same position as Detroit, changes have to be made. The same is true for the State.
Let me address a few things. Bridgeport firefighters have a 42-hour work week. State arbitration laws were changed some years ago that gave municipalities the right to refuse contracts unions have won in arbitration. All the City had to do was to have the City Council vote against the union contract. Next, last year Mayor Finch allowed the fire chief and police chief to retire and to collect their pensions and then the mayor renewed their contracts for five more years with a pay raise. This has NEVER EVER happen in Bridgeport before. That means now that EACH chief is being paid $250,000 a year, over five years, that means the taxpayers are paying an EXTRA $1,250,000 of taxpayers’ money they should not have to pay. Now I never heard Tom White or David Walker ever speak against this giveaway of City money.
BRG,
Jim L. is currently a Fairfield resident who is taking some interest in Bridgeport activities these days, though he does not vote here, does not pay taxes here and is not part of any civic action to confront the problems facing the community. He has an active, experienced and bi-partisan Board of Finance to fight the original budget battles and protect his asset values. And a legislature group that is not co-opted because of municipal employment and failure to understand what a conflict of interest appearance is.
And now we have BRG. Rumor has it he was a Fairfield resident but currently resides in Black Rock. Perhaps he has had some professional financial experience. But what does he know about Bridgeport’s governance practices or institutions? Does he care or does he project negative attitude onto people who may know more about a subject than he does? Do you feel Walker talks down to you? Perhaps you have put yourself in a hole and then are blaming Walker for your position. He still talked to you. Can you imagine what happens when City officials won’t talk to you or answer your questions? Or do so only if you pitch them ‘softballs?’ Get active, get informed, seek change in City process and representatives if they are not going for your goals or their own municipal tasks. Time will tell.
City officials haven’t talked to me or anyone else in this city without a large bank account without a large amount of BS for decades. We have a mayor who has a staff bloated with people who are mostly political appointees and have no role in providing city services. I find it offensive regular city employees are blamed for the city’s financial state by people who recently moved here. And I certainly do not pitch softballs to the Mayor.
BRG,
The political hacks you speak of are the ones who are negotiating all the union contracts, including the group you term “regular city employees.” The point of much of this repartee is those contracts entered into in past years were unrealistic (originally or in effect) and will ultimately need adjustments that will allow their original intent to be met, though perhaps with some alteration. Those who feel each i that was dotted, or t crossed when the contract was signed must be honored to the full degree may see that day come, but if they have to depend on current negotiations to sustain the significantly higher compensation effect of SECURE job, QUALITY healthcare/dental/vision for working years and BEYOND with LOW contribution levels and GUARANTEED retirement benefits with low mortality or investment risks to the employee, something has to give, and it will give in CURRENT NEGOTIATIONS if leaders look at things squarely. Do they do that? Not in this City! Do they share the implications of assumptions and costs with the taxpayer, or even with the City Council, before they have to vote on it? Not in Bridgeport. Save your outrage and feeling of being offended for those leaders rather than people who are paying taxes at the same rate you are who came into the City more recently. Let’s see some of the stuff you pitch at the Mayor, frankly. Come to a City Hall meeting at the public speaking session. No cost to talk for five minutes. No guarantee anyone will listen. But some are starting to. You don’t have to have a large bank account. And there is no guarantee anyone will listen. But I will. Maybe I can learn something new, and then use it. Time will tell.
I really don’t understand why the ‘retirees returning to work’ thing bothers people so much. The chief retired. He would get his retirement no matter what. The city would have to hire a new chief and pay him no matter what. If you re-hire the old chief you (hopefully) get a competent employee who knows the job and you do not have to supply him with health insurance or a pension. He already has health insurance and you cannot get two city pensions. It is cheaper to get the retiree back.
BOE SPY, then why stop at rehiring the chief, let’s rehire those at the lower level, right?
Here we go again, there could and probably will be a budget shortfall this year so let’s lay the blame on the retired city employees. Let’s reduce their retirement benefits and the deficit will go away. I have a news flash for some, you can’t negotiate away retirement benefits. You can tell me the city could declare bankruptcy and that will do it. It won’t. The first to be paid after bankruptcy are retirees.
For many years now city employees have been paying a good percentage of their salary for health care benefits and that carries over into retirement.
Many people are on this reduce the retirees benefits bandwagon but where are they at budget time when the city spends approx $5 million on ghost positions, where are they when the city makes cuts to none of the presented budgets? Where are they when the city borrows $110 million in tax anticipation notes and no one on the council knows what the interest rate is? The list goes on and on.
Where was everyone in the ’70s and ’80s when I and many others were being shot at while responding to fires? Where was everyone when we were fighting fires and found holes cut in floors to trap us? Where were people when they hung balloons filled with gasoline rigged to explode as we fought the fire? How many times were your wives called to tell them you were in the hospital badly injured? Where were you when the chaplain showed up at the firefighter’s home to tell his wife her husband was killed?
Enough already, we earned our pensions with blood, sweat and tears and you all can kiss my ass.
I do not blame the workers or retirees. I was trying to make present and past workers aware of this and the need to act in a way to protect themselves. They need to call their unions and demand the city address this Or you can sit back in your confidence the city ‘can’t touch this.’ The mayor is going to try ro cast blame for the city’s financial problems whereever he can. They will spread the idea among the people you are all or partly responsible for an upcoming raise in the mil rate or a city collapse because you will not help the city out. They will only ask for a little something something. They won’t get it because a lot of retirees don’t live in the city. The people’s rage and fear will put you in the same boat as the 1%.
You are incorrect regarding how retiree health benefits are handled in bankruptcy. They do not receive a priority and can be wiped out entirely. That is one reason they should be restructured.
The unions are not allowed to bargain for retirees thus they can’t negotiate away benefits. Many if not most of us under Pension plan A are on Medicare. I maybe wrong in my general thinking on bankruptcy and health care but I am not wrong on pensions and bankruptcy.
Andrew C Fardy, if you notice Dave Walker ONLY talks about givebacks from retirees, he never mentions anything about the profits of the health insurance industry.
Andy, you are correct, pensions are handled differently than retiree health care in bankruptcy. In part because they are funded and have a separate trust fund. You are also correct, unions cannot negotiate for current retirees. The bottom line is retiree health care could be wiped out in a bankruptcy. I am suggesting we restructure now to try to avoid a worse fate later.
Andy, retiree health benefits are unfunded and are not guaranteed. They do not receive a priority in bankruptcy and would not be the first paid. In fact, they could potentially be terminated in bankruptcy.
Dave Walker, the only answer you have is always for the retiree to give up something and nothing else. Why don’t you tell three or four things the Mayor and the City can do besides taking someone’s retirement benefits away from them they worked hard to get?
Ron, here is one that will drive you crazy. Mr. Walker worked for the federal government for 10 years and thus qualifies for a pension. I wonder if he also gets the same health care package other top federal executives get. Just wondering.
Andrew C Fardy, Dave Walker is a man of honor and I’m sure he has told the government to restructure the health benefits for him and his wife. I mean, that’s what real leaders do, they come forward and make the sacrifice first to show us the way.
Ron,
Thanks for the setup. I saved the taxpayers over $3 million plus because I left the CGOTUS position after about 10 years rather than staying the entire 15-years. My pension had a terminal vesting provision which is illegal in the private sector but not for the CGOTUS pension. In addition, I don’t have any employer-provided retiree health care assistance. Therefore, I do lead by example.
Dave’s pants must be getting heavy. He has BRG and you two living in his wallet. I think you have it all wrong. Dave is not recommending these changes because he wants to. He is saying the city will have no choice. This is like a guy who makes $1000/wk and spends $1000/wk. There is no reason to believe he will make more next year but we know it will cost him $1200/wk to live. This problem may fix itself. Bill Gates may kick down the door to city hall, buy up 10 blocks and build a 100-story skyscraper. All the retirees may plan a trip to Mohegan and their Fung Wah bus may drive off a bridge. The city does not have the money to pay these benefits and we have no reason to believe they will have the money any time in the near future. You can bicker about whose fault it is, pontificate about how hard you worked and what you did, demand random people from other government agencies also have their benefits altered but none of this will matter. If the money is not there you are not getting paid. It will be like getting blood from a turnip. It just doesn’t work out. Even if Dave relinquished all his benefits BPT’s situation will not change. What really concerned retirees do is come forward and make the guy who has the best plan to fix this mayor. Show us the way.
BOE SPY, why not bankruptcy?
Yeah, that is where we are headed. That is what this entire exchange is about. Once the city goes bankrupt all union contracts go away. Then a judge looks at what the city owes and what it can pay. Then they decide who gets paid and how much.
This is a list of who needs to get paid.
Police, fire, teachers, retirees.
Which one in that group offers the most expendable city service?
BOE SPY, so why not go into bankruptcy? You list what would happen so what not go there?
Because bankruptcy is bad. Very, very bad. If you do not understand that you should google it. That would give you a more detailed explanation than I could. The retiree pay and health care is just one part.
BOE SPY, I understand what bankruptcy is but why should retirees bail out the City for the past ills of past mayors and city council members, their pain should shared by all. Let’s see what happens to Bridgeport the largest city in the state and the State of Connecticut when it goes into bankruptcy.
Because it may be in your best interest. If you depend on bankruptcy court you may get all, less or nothing. Therein is the catch. In bankruptcy you do not know. It is like sending your contract to arbitration. At least if you make the deal, you (as a group) decide what you give up and what you don’t and how much. I am sure the city will ask for concessions from all. Many city unions have already given furlough days, given up raises and accepted higher insurance premium cost sharing. Incoming employees are getting a significantly cut benefit program. Remember, the mayor will cast retirees in the same light as they cast the 1%. Greedy, selfish, not willing to help out. Rich retirees living off the pension teat and forcing a poor, stressed population to pay higher property taxes to save themselves. True or not each side will spin it to their advantage. The city has an organized spin machine and you guys have nothing.
I think CT will be OK. BPT may be the largest city but it does not represent a large part of the state’s income since the state makes its income from income and sales taxes. People in BPT have a low average income and low spending power. If anything, BPT is a drag on the state because it needs so much more from the state than other towns and cities. BPT may need more than it provides, I do not know. Other than some minor embarrassment the state will be unaffected. Depending on how other towns react the state may choose to leave BPT to solve its own problems.
BOE SPY, how do you know the city does not have the funds to pay the retirees? Nice comment abut taking a bus to the casino and the bus goes over a cliff. You are a real smart ass.
What do you know about the city’s finances other than what you read here? Nothing!!! So I say this with all humility: Screw you!!!
BOE SPY, so what’s the problem, bring on the bankruptcy.
Bankruptcy will render void inequitable union contracts many of which could affect current pensioners. Mandanici’s famous 20 and out for the cops ensured his reelection but strapped the city with a huge pension bill that is likely to last beyond 2040. The entire country will be watching Michigan. The Governor wants to take over Detroit. First step will be to void union contracts as the only way to restore financial stability. I hope he succeeds. Unions stink.
yahooy, you stated “Mandanici’s famous 20 and out for the cops ensured his reelection but strapped the city with a huge pension bill that is likely to last beyond 2040,” but you left out one important fact, those firefighters and cops were paying 8% of their weekly pay towards their pension BUT Mandanici and every mayor afterwards NEVER invested that money or even put it in a passbook bank account. Instead that money headed straight into the City’s General Fund.
So let’s blame the unions for the downfall of Bridgeport. Okay let’s go into bankruptcy that will render void inequitable union contracts many of which could affect current pensioners. Now what, let’s do away with all City unions, now how do you decide how much to pay employees, what benefits do they get if any and who makes that decision and after that leave who makes the decisions, I could add more but let’s deal with what is out there now.
Let’s at least get our information right. The 20 and out for both police and fire came under the Panuzzio administration, not the Mandanici terms.
Absolutely right, I get them mixed up. Sorry. Unions still stink.
The city can declare bankruptcy and it would put all current contracts in limbo. Bankruptcy would really not affect retirees as they would be the first ones paid from existing funds.
Where are the screamers about social security and other federal benefits? The US is in a lot more trouble than Bridgeport so let’s blame all the retirees on social security.
Are you sure Andy, or do you just think that?
Central Falls Rhode Island exited bankruptcy earlier this year after cutting pensions and health-care benefits for retirees. The state sided with bondholders in that case, passing a law that allowed them to put a lien on city tax revenue. The city’s bondholders were paid in full, according to court documents.
www .bloomberg.com/news/2012-12-12/calpers-bankruptcy-strategy-pits-retirees-vs-all-others.html
All of the cities in the article either did or are trying to stop paying retirees. Even in CA where retiree pensions are protected by the state constitution. CT retirees do not have that level of protection.
BOE SPY, you really know how to play things down. This will be national news, no big city on the east coast has gone through this before. This would affect businesses, real estate, jobs, schools, the tax base and more.
No city in the US had gone through this before. Now there have been 31. Yes, bankruptcy would affect all those things and not in a good way. It may be mentioned in the national news maybe a little more on Channel 12 and in the Post. Get a little serious. BPT’s bankruptcy would hardly be earth shattering. Half a dozen cities in CA have done it already. Most people in CT would shrug it off as ‘that figures.’ The rest of the country could care less about the financial troubles of a washed-up factory town in a backwater state. Did you hear anything about Detroit declaring bankruptcy? Detroit’s bankruptcy was little more than a footnote. You think Bridgeport’s would be a big story?
BOE SPY, yes it would be big, once again it is a big city in the northeast section of the country where the media is plus California is like another country on the west coast.
Bridgeport received some attention when a former Mayor tried to take the city through Bankruptcy but many cities have done it since and it’s not as big a deal now. Federal law allows cities to file for bankruptcy but not states. It is my understanding state law requires a city/town to subject itself to an independent financial control board before it can pursue a bankruptcy filing. We need an independent financial control board in Bridgeport ASAP!
Dave Walker, on this one I’m in total agreement with you. I have posted that statement a number of times with a few others, we need the state or independent financial review board to in here. This mayor and City council can’t bail the City out with their leadership.
Ron,
Let’s work to make happen. There is no question a Financial Control Board is needed.
Local Eyes Rumor Mill:
Without explicitly saying so, David Walker seems to be a fan of stop-on-a-dime fiscal austerity. This is the opposite of what The Federal Government did during his time as Comptroller General of The United States, when debt continued to skyrocket. Televised pundits still use September 2008 as a pivotal time in fiscal, economic, social and housing history–that’s when “the lines crossed.”
Back pages like this are a good place to say it: I think David Walker is trying to clear the deck for a yet-to-named Mayoral candidate from the Harborview Market Coalition and then seeks the Republican nomination to become President of the United States of America. Details to follow.
(wink)
Local Eyes,
If you do your research you will find out I spoke out long and loudly starting in the early 2000s regarding Bush (43)’s fiscal irresponsibility. That irresponsibility has continued in recent years under President Obama. You will also find out I am a political independent who declined efforts to get me to run for the U.S. Senate and for President in 2012. I have already provided over 15 years of service to the federal government and over 20 years of public service. As I have said many times before, I have no plans to run for elected office. I am, however, committed to continuing to make a difference.
We pontificate here. It’s a habit. We’ve been given cultural permission to cajole, conspire, predict, prognosticate, ponder and reply.
David Walker doesn’t have to answer to me (shrug).
I will speak to the Board of Directors of the CBIA tomorrow morning about the true state of Connecticut’s finances and competitive posture. We need major transformational changes at the state level soon or else you will hear the giant sucking sound of even more wealthy people and businesses leaving the state. If that happens, it will make things much worse. It’s time to tell the truth, get to work and create a better future.