Sunny San Diego Finds Itself Being Viewed as a Kind of Enron-by-the-Sea

[yardwork]

SAN DIEGO, Sept. 1 - In the summer of 2003, Diann Shipione, an investment adviser at UBS Financial Services in San Diego and a trustee of the city's employee retirement system, was scanning a prospectus on a proposed San Diego sewer bond issue when alarm bells began to ring in her head.

Important financial information was missing. The prospectus did not mention that the city had for years been shortchanging its public pension fund, leading to an unfunded liability of more than $1.15 billion, or that the city owed nearly $1 billion more in health care benefits to retirees and did not have the money. And it implied that the pension fund's actuary had approved the underfunding when Ms. Shipione knew that he had not.

snip....

Ms. Shipione's warning began a cascade of events that have led to a legal, financial and political crisis in San Diego, the nation's seventh-largest city, which has long enjoyed a reputation for clean and conservative governance.

snip....

He acknowledged that the city had made a "mistake" in underfunding its pension programs, but said the practice began in 1996, under a former city administration. That year the city essentially borrowed millions from its pension plans to cover the cost of holding the Republican National Convention and has continued the practice to cover operating costs and underwrite numerous city projects.

http://www.nytimes.com/2004/09/07/national/07diego.html?pagewanted=1&th

[yardwork]

1. This is a very important article - if San Diego is doing it

probably other cities are doing it as well. And I find it fascinating that San Diego "learned" to do it in order to make it look like they could afford to host the RNC in 1996.

[Doctor Smith]

4. The whole country is doing it actually.

Congress has spent all the Social Security surplus, and most public and private pensions are funded with overvalued assets, such as stocks and mortgage bonds.

I believe the US retirement system will collapse under the weight of the baby boomer retirements, and will likely suck the US economy under with it.

[Trailrider1951]

2. Hmmm, you know, Houston is in the same boat

Millions in underfunded pensions for city workers. And, by the way, we hosted the year 2000 Republican National Convention. Hmmmmm....

[yardwork]

3. NYC employees might want to check into their pension funds...

Just a thought.

[lovuian]

5. Well not to worry they can always tax the citizens more

:bounce: They just may never be elected ever again

this guys should go to prison

[hatrack]

6. Opun da books!! Opun da books!! Ve fix all problems vith buchets!!

This should be fun to watch.

Maybe Orange County South can contract Industrial Light & Magic to make their budget shortfalls just disappear.

[acmavm]

7. Why is it that anymore when you read about a huge financial ripoff you

always find the word 'republican' somewhere in the explanation?

[stevedeshazer]

8. "Made a mistake"

San Diego "has long enjoyed a reputation for clean and conservative governance."

There's no such thing anymore, baby.

[Sandpiper]

10. Since when?

San Diego "has long enjoyed a reputation for clean and conservative governance."

San Diego local government has been rife with graft and corruption for years.

[loudsue]

9. Where there's Money and Repukes, there are SCANDALS!

:shrug: When are the freepers going to wake the F*** up?????

:kick::kick::kick: