New Haven Citizens Action Network » Debt Obligations

Unfunded Pension Obligations

jeffrey.kerekes — Tue, 15 Jun 2010 12:13:56 +0000

Check out this article in CT News Junkie on Unfunded Pension Obligations

An important piece this article does not mention is the “discount rate” or “Return on Investment” assumptions. When you assume, as New Haven does, a high and unrealistic 8-9% return every year, year after year, you only need to put in a small amount of money AND you can claim that we are “funding the pensions at 100% actuarial required amount”. The problem, is that if you assume 5% then the amount we need to put away in our CERF and P&F funds would skyrocket each year. Our funded ratio is very low AND we assume a high rate of return. I would recommend you request from our actuaries SEVERAL scenarios with the rate of return, pessimistic/ best guess/ optimistic ROI. Our current ROI is hopelessly optimistic and concealing the true problem in our city’s pension funds.

An Inconvenient Budget

jeffrey.kerekes — Mon, 12 Apr 2010 01:44:10 +0000

NPR Covers Pension Shortfalls

jeffrey.kerekes — Sun, 21 Mar 2010 13:37:46 +0000

Pension Woes May Deepen Financial Crisis For States

There’s a looming U.S. financial problem that’s big, is getting larger and could threaten the solvency of some states. From Connecticut to California, pension funds for teachers, firefighters and other public employees are severely underfunded. Read More Or Listen to Coverage

Blue Ribbon Budget Panel Reports to BOA

jeffrey.kerekes — Tue, 30 Jun 2009 20:58:48 +0000

The final recommendations to the New Haven Board of Aldermen from the Blue Ribbon Citizen’s Panel on the Budget is ready. Its a worthwhile read. Thanks to all the panelists and city staff that contributed to its construction.

Freedom of Information Commission Hearing – Part 1

jeffrey.kerekes — Fri, 01 May 2009 19:48:53 +0000

There was a hearing at the State Freedom of Information Commission today. You can read the background in the New Haven Independent and The New Haven Advocate. Here is the sanitized version of the city’s projections. The attached version is different then the one Jeffrey saw in July 2008 and the one he requested under the FOIA. Notice that the City’s projections keeps taxes completely unchanged for five years. I don’t think anyone believes that taxes will remain completely flat for five years. Things inherently cost more each year. More updates forthcoming.

Why the City Can’t Hope For Its Own Bailout…

jeffrey.kerekes — Wed, 12 Nov 2008 12:26:29 +0000

Check out this Government Accountability Office (GAO) video summary of the economy. This is before the latest meltdown and bailouts. Did you know you owe the US Govt $350,000?

http://www.gao.gov/media/video/fiscal/windows/amfiscal.wmv

Mayor On Financial Problems

jeffrey.kerekes — Thu, 23 Oct 2008 01:23:05 +0000

Although this letter from the Mayor focuses on the national financial mess, New Haven’s financial problems have been years in the making. This was coming to a head without the latest national pressures. What is happening, is now, these issues can no longer be managed with one time revenue infusions from selling City assets, or other financial engineering. We have written elsewhere, and provided testimony, that the budget is mostly personnel related. That is why the Mayor’s letter focuses on union renegotiations. Tweed, Shubert, the trolley to nowhere, and other major ticket items still pale in comparison to the major driver – personnel cost. This is simply a fact of the city budget. The fact that the city employees and the citizens still do not understand this is a failure of leadership on this issue. We need transparent government, multi-year financial projections to make sound decisions, and accountability at all levels of city government and city spending if we want to start digging our way slowly out of this hole. I am hopeful that the current administration will take the necessary steps to greater transparency, community involvement, and encourage honest and rigorous discourse on the financial state of this City so we can begin coming together to right this ship. Have some ideas? Send them our way.

Is New Haven Insolvent?

jeffrey.kerekes — Mon, 23 Jun 2008 11:16:25 +0000

According to Andy Ross, the City of New Haven is insolvent (unable to pay its debts). We have resorted to “financial engineering” to make our budget work (like borrowing from one credit card to pay another one’s monthly minimum payment). Read his informative article from the Grand News.

Contact your alderperson
to ask them about this article. We sent them all a copy of the article.

Bankruptcy In Our Future?

jeffrey.kerekes — Thu, 08 May 2008 23:44:58 +0000

See below for a NYTimes article and Harry David’s contextualization.

Note the size of Vallejo — 115,000 compared to New Haven/s 120,000. Vallejo’s payroll costs were 80% of the General Fund compared to New Haven’s 65%. New Haven’s Mayor will be proposing some modest payroll trimming that may not be sufficient. We have the experience of Waterbury to look to and to try to avoid going down the path of profligate spending in a constrained tax climate. Harry

US | May 8, 2008
City Council in Bay Area Declares Bankruptcy
By JESSE McKINLEY
The unanimous vote was cast after efforts to squeeze concessions out of Vallejo City employees failed and with the city facing a $16 million shortfall for the fiscal year.

2008-9 Budget Recommendations

jeffrey.kerekes — Wed, 20 Feb 2008 20:39:22 +0000

(NHCAN) is pleased to announce the budget recommendations for the 2008-2009 Fiscal Year. We have prepared a list of recommendations including the ending of unsustainable subsidies, to the reorganization of departments, to the transformation of the budget document itself. Below you will find the link to the full document (2.3 MB), as well as, shorter versions of the document. We recognize that some of these recommendations may be impractical or even naïve. We invite you to consider these in the spirit in which it is offered and to offer superior alternatives for the general good. We look forward to continuing this discussion.

2008-2009 Budget Public Comments(2.3 MB)

Executive Summary Only (414 KB)
Full Document Without the Appendices (1.4 MB)
Appendices Only (2.0 MB)