Rising Pension Costs Putting Pinch on Cities

Wednesday, 30 Oct 2013 02:25 PM

By Sandy Fitzgerald

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink
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:

© 2014 Newsmax. All rights reserved.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
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:
Retype Email:
Country
Zip Code:
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
You May Also Like

Two-hour Arizona Execution Sparks Calls for Rethink on Death Penalty

Thursday, 24 Jul 2014 11:22 AM

Lawyers for a double-murderer whose lethal injection in Arizona dragged on for two hours called for an outside review of . . .

Fans Protest Tony Dungy's Clarification on Sam Comments

Thursday, 24 Jul 2014 11:06 AM

NBC sports analyst Tony Dungy has clarified his comments on drafting Michael Sam, the first openly gay NFL player, but D . . .

Facebook Taking Piece of Mobile Ad Revenue Pie From Google

Thursday, 24 Jul 2014 10:28 AM

For the ninth straight quarter, Facebook Inc. has blown away Wall Street projections, more than doubling its $333 millio . . .

Most Commented

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

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