“The Governmental Accounting Standards Board (GASB) has issued two Exposure Drafts documents outlining proposed amendments to the existing pension standards. The reforms are intended to
improve how costs and obligations associated with government pensions are calculated and reported.
In San Jose, the proposed changes are already being taken under advisement, and using the proposed new rules, the City Auditor’s office has re-examined their pension liabilities. Under the proposed
GASB guidelines, the city’s unfunded pension liabilities will nearly double, from $1.1 billion to $2.1 billion (as of June 30, 2010).
According to a memo released from the Auditor’s office, “The changes currently proposed by GASB
would reduce the city’s net financial position (assets minus liabilities) and increase the pension expense recognized by the City in its financial statements.”
This will throw many cities into immediate bankruptcy when the regulations are implemented. Actually the cities are bankrupt but refuse to tell the truth–not they will be forced to be honest.
Goonions buying politicians, who then give sweetheart union contracts is the main cause of local
bankruptcy. Watch this disaster in California over the next 24 months.
Stephen Frank’s California Political News and Views
July 31, 2011, 12:05 PM