Tags: pension | cities | budgets | services

Rising Pension Costs Putting Pinch on Cities

Wednesday, 30 Oct 2013 02:25 PM

By Sandy Fitzgerald

Growing pension costs are consuming general funds in cities across the country, leaving them with less money to spend on basic services such as garbage pickup and waterline maintenance.

Median pension spending among the nation's 250 largest cities went up to 10 percent of their general budgets in 2012 and continues to climb, reports The Wall Street Journal.

Cities are finding themselves with nowhere to turn as their populations age.

For example, in Springfield, Ill., the Journal notes, the city's annual payments to the state Public Employee Retire System has tripled to $19.8 million, which accounts for 25 percent of its operations budget.

The state capital is feeling the pinch, but so is the entire state of Illinois, which is holding a $100 billion unfunded pension debt, according to ABC Chicago affiliate WLS-TV.

The state's fiscal crisis has been described as the worst in the nation, and lawmakers are heading to Springfield next week to address the pension issue.

"Next week is an opportunity for the legislature to get a bill, pass a bill so I can sign it into law," said Gov. Pat Quinn.

The pension pinch also is being felt elsewhere, including bankrupt San Bernardino, Calif., which is being sued by the California Public Employees Retirement System over its $17 million in pension arrears, reports Reuters.

Related Stories:

© 2015 Newsmax. All rights reserved.

Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

Man Held Over Suitcase Stuffed With Human Remains

Saturday, 31 Jan 2015 08:06 AM

A man was detained Friday night in connection with a suitcase found on a downtown San Francisco street stuffed with huma . . .

Texas Gov. Abbott Declaring 'Chris Kyle Day' in Sniper's Honor

Saturday, 31 Jan 2015 08:02 AM

Texas Governor Greg Abbott said on Friday he would officially declare Feb. 2 Chris Kyle Day in the state, in honor of  . . .

Ohio Delays Seven Executions to Secure New Drugs

Saturday, 31 Jan 2015 07:45 AM

Ohio is postponing the execution of seven death row inmates, officials said Friday, following several botched lethal inj . . .

Most Commented

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved