Yet on close examination, the city's decades-long journey from prosperous, middle-class community to bankrupt, crime-ridden, foreclosure-blighted basket case is straightforward — and alarmingly similar to the path traveled by many municipalities around America's largest state. San Bernardino succumbed to a vicious circle of self-interests among city workers, local politicians and state pension overseers. Little by little, over many years, the salaries and retirement benefits of San Bernardino's city workers — and especially its police and firemen — grew richer and richer, even as the city lost its major employers and gradually got poorer and poorer. Unions poured money into city council elections, and the city council poured money into union pay and pensions. The California Public Employees' Retirement System (Calpers), which manages pension plans for San Bernardino and many other cities, encouraged ever-sweeter benefits. Investment bankers sold clever bond deals to pay for them. Meanwhile, state law made it impossible to raise local property taxes and difficult to boost any other kind. No single deal or decision involving benefits and wages over the years killed the city. But cumulatively, they built a pension-fueled financial time-bomb that finally exploded. http://www.reuters.com/article/2012/11/13/us-bernardino-bankrupt-idUSBRE8AC0HP20121113
And it won't be just the police and fire pensions that kill Portland it will be the $600 million spent on bike paths. It will be the $1.5 billion mystery train to Milwaukie. And the $150 million eastside streetcar extension that is now averaging 5.5 riders per trip! Cars are evil and the city of Portland is willing to go bankrupt to prove it!
[SIZE=-1]Long[SIZE=-1] ter[SIZE=-1]m debt for the c[SIZE=-1]ity of Portland. [/SIZE][/SIZE][/SIZE] Unfunded pension and retiree healthcare:[/SIZE] $3,266,215,948 [SIZE=-1]Long-term bonds and interim financing:[/SIZE] $3,332,846,725
