WWL>Topics>>Think Tank 1210pm Dallas may go bankrupt

Think Tank 1210pm Dallas may go bankrupt

Nov 22, 2016|

Wow! Dallas may go bankrupt, New Jersey is right behind them and more and more cities and states are in trouble.  It’s all because of no money to pay pensions.  Is Louisiana also in trouble? This hours guest: Jay Dardenne - Commissioner of Administration Dr. Jim Richardson - Director of LSU Public Administration Institute and Professor of Economics at LSU

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Automatically Generated Transcript (may not be 100% accurate)

And via historical mine. Brooding about dollars. Says it's growing economies of the nation's third teeing mortgages cities. It's rates were all knew who they're not planning potholes. Skull Island. Little League bristling with ring. Got hundreds of multinational. Corporate actions that have chosen dollar. So that and called ma. Ballots. Is staring bankruptcy. In the guy. And its pension funds. Some pliers and islands that Jones owner of the money that goes from there. Just by this month and state oversight board. That it's it needed now walking into the engine blades of bankrupt. New Jersey. The studio and standard and forwards. Rated the negative. And in article Anglican and scissor in this school depths by a wrong. Pensions. Chicago. Virtually the same thing. And are remembered doing shows over the years about pension problems in this state so it's well. I'm. Looking all the rigs. That are having trouble. Thankfully we have Jerry Jordan government Truman administration your route in. Bill and some of the you know holds in my memory boards but in Judea projected to. Grow. I thought yeah. Good drunken you know I've I've granted and read and some days good news stories when in January when compared to worry. When John Edwards has more than 300 million is sitting in state employee and teacher pensions system. Is that in the born near wrecked it and if so does that mean we don't have the problems and others. Well there's the good news is we've got challenges our pension systems so we do not have problems. And in fact as recently as well late. Fall. Of our early well this year. Louisiana recognizes. An opt out stage in the country. In terms of bench people they're retirement and that's from the keys charitable trust that did get buried in debt still so. Although we have challenges like virtually any instate municipality has to present the procurement system to work and. Many respects in the same way. We've got action on to the skill we've addressed that flat and up. New York West Virginia Indiana shelf decode it literally popped up planes in the especially according to. That's the good news in response to your concerns about now from the album which read. And again though I'm probably breathing it dated shorter than its us. Louisiana pensions and some long term debt now stands at nineteen billion is that wrong. I don't I don't remember the nineteen or builder which is unity at a lot but but everybody is. Long term lab building in Louisiana has taken appropriate steps to deal with what's called the unfunded accrued liability we've. Increased book of the amount that goes to reduce UAL were on schedule to. While pay off our current UAE mail side I believe. I 20/20. And we're on schedule. On the and so yeah it's not as many years it is indeed many. And under and I'm bringing nordic crew here's Susan majority Oval Office or pulling the bill for retirement benefits. That are many instances for more generous and then conventional these secure than now charged in the private. And part of the column. Your thoughts there. I think that's probably accurate because Louisiana. Yet to go back recognized and constitutionally. There strong. Commitment to paying. And we pay our debt service first before we pretty unique thing. But the state employee retirement system is right up there. But after our debt is paid her daughter as a call war on the state treasury for. Retirees and that's an appropriate protection or carry out that it's correct potential effect surely secure protection. First and pull out all the benefit. Stay employment in its war thing all your work talk about it. Beat many respects. Your overall lower for state employees compared to similar positions are up Schechter. Went there as a generous retirement compiled. And there's been a lot of debate will be continued to you know for the type of plan we have in the in lasers in the state system where it's going to benefit plan where you get in the state understood. Yeah post defined contribution. Toward their flexibility in. Your. Benefits are based upon the contributions achieved many Lucy has it that have been caught and not a defined contribution plan and. There's been a lot of English about weather for new. B which this that you just legislature options do. Our Ed no record thinks is sapping codes in school cities. Of the presidential and shrub public agencies samba moves troubled pension plan now I have more retire re growing checked. Then active members contributing. Is that correct. I don't know I think and we can't sit and knocking an artist I don't know these compare but ultimately it is correct that. We often he's what what we purchase legacy. On the entities particularly in higher education where. There's an obligation to pay for retirees. The main. From my Ambien be employed but there's. Big bank employees who worked on our count sinister reason you like. That people agent we can't extradition. Blow retirement age gone up so we can appreciate sixty to 62. On the boat laser and teacher for charmed. Within the past several years in a way to the fire. Whereas previously you didn't have to wait and actually get more people entering our retirement age. And it younger agent and going giving employment in the province sector to shop and what they're making from studies. And final question and in Dallas they just said we is cubic we don't have the money. Third finger bone bruising problem. Is thinking about borrowing money from the pension fund. Delaying a lot of long awaited public works even taken money back from retirees. In order to put I'll words in good health. Have we have to do any of that federal Brea do do things that cause pain in other areas we. We keep talking about we can reported on guard colleges we can board plunder our highways. A bridge to cut back in anything important to the citizens in order. To. Prove to him a problem with a penchant. I don't think cancer that after the yeah in that we're unable to do other things with dollar we have our commitment to higher but I don't think that is if we should do we we have an obligation. To pay retirees not think it's appropriate that we make certain amount out party but. Pleasure pending state dollar retirement than it does change you can be a problem but we haven't had taken dramatic steps picture for the Dallas is looking to not think on cars it where. We're a little bit of the curve in terms of how we responsibly tried to address our 100 accrued liability. Am and the problems come retirement system and I'm I'm the least. Cab files opened it's I am here Hampshire. Right now in lasers and they are currently at 40000. Members forty Shetland isles and retirees and beneficiaries. Speaker system we have 83000. Active members and sending out. And let me question what pitched well. Club moved more blood more requests from Portland ago. For the noon stayed high years is her new system put in place to make sure that. Other elements of our society. Doesn't get short changed in order to take care of pensions. That's what router or two in the debate as to what he had done benefit or defined contribution church so we still have fun net interest in the legislature has not. Changed any any of the rules for me except for some modifications were armed. I haven't changed little fundamental nature of the system. Area and Newark is big thank you for the time have a good day. Claimed Symbian or it can be brought back when you think to its eggs are one in its Google wouldn't seem to have the pension problems. Some of your articles I've read you and in particular one Jerry Jones said. World were born taking from other entities in this state. To make sure the pensions don't get in the probe. Why why wouldn't we paths in new law that says in the news state employees. Just don't get benefits we can't report what do you think two basic 0187. Confusing but. I think they're Hedlund. And caught by. Is very well. And talk about. United States entity that is the chances. Economic league growing city. In the nation's third gene largest cities. It's got hundreds of multinational. Corporation. They have chosen that Sunnis headquarters. In the mid air and says are going bankrupt. Lehman on talk about now. What the mayor says boards and it's important partners pension fund is near collapse. And it's gonna bring city down where that an owner of the month they report. Over recent weeks. Panic dale lynch retirees. Have pulled to 120 million dollars out of on settled for Roland. Was recommendation. In July and that the retirees no longer be allowed to take blocks of money. And I remember a dead apparently. And in particular interviewed via. Sig perjury Kennedy over the years. We certainly had little overwhelmed with pensions or I thought that it solo bootable problems and talked to Judy Gordon. Commissioner of administration. Just three minutes ago in the future does that actually. Louisiana has taken steps and not hand does happen to their pension phones. They are funded at this point. It. According to Bjorn Grohl I'm looking which I'm looking. One and two in Louisiana Indians is the counting on general running collecting the pump up public pension. The museum is formed pension plan for state employees. All good born again. Lacks adequate bones to cover the arrest them and obligation to retire please. Two did tune of 21. Billion. But apparently would put something together in Tuesday that is gonna solve that problem. Go to Byrd and terrorists. Boom went up bookstores as sign them around things like this. Livingston Perez who were. Multi million dollar deficits. Under clear financial bankruptcy parole burglars. In his pension. Is that route parents. Spend a whopping 91 million dollars and soon retirement related expenses for its employees. That's 41 million dollars more than it spends on public works. Seven more than the praise upon the police department. And and Poland in the war on its inferences bill. Started hiring part time enforcement officers for the please part in the recent. And important to him because of the rising pension benefits. And when I just a while. Or we'd taking now from other things that are very important whether it be schools. Whether would be pleased for the B highways water remain being. Are all we brought being Peter to pay pol. When it comes to pensions. And his answer was. And that's the weird setup in the legislature. Apparently and patent thing to change that. And again appealing is the the problem is under control. But but I go back to Indy and juries said all so this has not occurred. Give we've got a 21 billion dollar death or somewhere thereabouts. Even if we god. Financial planning to earth set ups to make sure that doesn't become a balloon that Burr urged. How motive we take break news state employees and say sorry. You can't have the benefits. That a putters in the bond in the first fully and we have not. About junior drive through Dallas Hugh Hugh. Didn't trains in the sky line. You redo the impact house's economic growth of the nation's thirteen large cities hundreds of multinational. Corporations. Macon there headlines in the headquartered deserves the headline you don't think you'll ever see that policy is going bankrupt. The mayor says it can't be reported its because of pensions. And remember over the years doing the numbers showed with the treasured John Kennedy talking about the problem with a pension province. And source are dual breeding and I hit New Jersey and there indeed death of fiscal death spiral. Because of penchant poem Chicago. Gore along the same lines in a number of all of the majors and it's. And mono rail bed live to Italy deuces is ever worry you. Old there's the lists is dated apologized but. There was news article that says it's. Our. Estimate due due. Pension debt at this point somewhere on 21 billion dollar budget. Isn't there a bid to shorten its interview and history could have just got through talking to jade garden can be sure the administration. The Ted then not so we're kind of gutter under control so what that. I introduce doctor Jim Richardson director old shoe public administration in sued proposed Shura economics. Alicia and I think the government and gentlemen the legislature called on more than modes when they're talking about the economy. Doctor I've appreciated the call and maybe your short one but I've appreciated the call. Well thank you very little actually. Don't yeah. Well it. And we say. The the and he the in the lead. There isn't that we have a pretty large unfunded. Accrued liability. Quote truly billion dollars. I can invoke the teacher and the stately turn the system we have there's a scheduled to pay all part of that is it that you could get it amounts to a their respective monopolies that the only sure that the real. Welcome back or about it don't make you eat you know don't quite bickered. Repeat duration that type of I think Gatwick and accurately Albert emanate out in the marketplace if we have of the stock market very very well. Then. Call the asset that they pension systems do well and that will take care about it that much or this tactic that we would have would have a problem. But if we go make it bigger among them women talked to Julian says. With the problems we've had in the past they've guard drew put in place. And and is generally thought of news state employees saying that happens sorry. You can't have those same benefits that are going to be reduced and ordered them we don't get in tool bond again. Is that is that opera that. Were hiring or state employees with the slaying pension plans in the so. Does doesn't that dev as a growth. Well I think they did it right now there are no other. And Marie shame we carried out for our education our marker that I didn't go to Q a essentially that defined contribution plan and essentially they are taking their own. At stake and convicted but it's not that it lead it's not part of the rich and bored by the system. Did you get a part in those court for. The state agency right now and go to the state retirement system that return to move the country. And make sure they look in the opening of the what that retard. Point five or forty years they didn't think the idea that state is. And that kind take that spot but are are diminished it that's like this statement to make sure they. They're from. From there they. They. You hope the market State's top. The market is at the go back you're back you're just an ankle but it averaging out it will it will continue to. All right. Forgive me will keep you people more minutes to go take a quick break. When when I come back take one lands Q if you were protecting the pension plan. Both were cutting you know verge of these we've got to be multi billion dollar highway back applaud. In the number of other agencies being cut back corps or not funded totally. Is part of it because were in all of the pensions. To make sure of that program. Is hole. Coming right back Wednesday questions comments. To his eggs are 170. WTO. Vigilance on the pole run every decade of BO program did you more. Punters that. If your word for the Slater you're concerned about troopers sentient Brooke you pensions. And 63%. Of you say you or don't big we just saw two of the U commissioner of administration. It sure does. They've gotten quite a bit dead but they've got a plan in place to pay for a bit and they expect the pension should be pundit. Altar of doctor Joan Richardson director illusion of public administration in sued to Princeton professor of economics at Allah issue. A professor. Of give and we're so short on money and so would him major thing from highways so higher education. Or oriented the monies that are not giving to bones. Industry's own facilities. Being taken beat columns of the pension problem. It'll go out and the cut the unfunded liability is essentially dead and you have paid out over time. Net. Net new university. A cook to make a contribution to that point system. And I think right now it's about this suspect William and reliability. It's about pulling them pursue the pyro so that made it very large. Amount of money goes directly. To from university to. Do the pension system true essentially. I liability and that outlook for the eight ANG as well and in that situation we meet the necessary. Percent of breakage can be paid toward the. I'm kind of liabilities associated with the state police. Retirement system it could be almost decide to lead eight to 30% cut the number and then shortly until we get paid for. That all of that your ball he can do. I think of them vote yes there's been a good strike. We're murdered when we're talking about what twenty billion dollars how long pale and we'd talk about 2030 years. Elect kept it 11 will go out and weekly Internet there. There is about seven billion dollar the only going to our problem. The rest will go in at thirty. In Kuwait 37. To thirty days although net anchored to take you out. About clean air. Dollar and the gold plated compromise bill. Like its maiden and you can make sure we don't created out of this very important. And and again we hope many. And end as to why the legislature. Has not or why would be a bad idea. Symbol is saved to news they'd employees we've we can important while we're doing we're drawn to pay at all now we can read more debt. We're gonna have to reduce your benefits. Blow to help me there. Well I think that are there issues is if you're turned our new people. Partner in the attraction for the job but what are they other you know besides mr. Pettit are they over the benefits. Well at the bet if it is no recount but you made me at Harvard people try it. It would be and apply it struck me the real problem chip equipment that our people on the and we could change opinion and consistent revenue people he's going to be that the system our current system. It's at about it. But we need to be a part poorly state and the employee tight for all. Thought that the partners as future you can't decide that they used to exit airport but the regular their pensions system. Ball he may be advocate employed employees who need go to the perfect thing. Could could they be more in tandem with the wounded pride and tensions. Good companies they are good thing I've reunion. Says in most instances these state pensions more generous. Financially secure them. Oh. It will be. The only state workers illusion of obscurity where all our report due to that there is the net sensors built in security for the private workers. It may be are here at much issue when they want but it had built in security blanket and then they're doing well. Mo made cracker company that Condit defined contribution. So let me say they contribute to your retirements as client you contribute in an interview putting into the marketplace. I'm on could be and dark could be there and go on whatever and you put it there and you were on the market. My contribution plan. And leader get into that market order. Of the the person with the plan is there Rick Decker. Red under our system where the state really. It's a risk taker because it is the market stalls bulk or we have a contract with the state employees we will play. That. At least are on public option for the provision that we won't predict that that puts estate and domestic or. Or attribute most part property now. And this is Deborah what you do in the fifty to sixty mowed our company. Part because of a contribution and defined contribution plan and the rest it more on the urgent guitar and I tripled to the company that actually at the plant. Doctor couldn't even begin to hold comes from you know you're busy. Thank you all the time have a great day and happy thing. You. Right back of an obvious now.