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Here in the VI the news has been overwhelmed with the 8% pay cut. Well, in one community in the states, pay cuts happened last year, a state appointed receiver took over to prevent bankruptcy, the receiver made the mayor and city council members part time --(cutting their pay by 75%), and now after all the cuts ------the only one area to cut to avoid bankruptcy is CUT , current retired police and firefighters pay and benefits; retirees are being asked to take almost a 50% cut----or more if the community ends up in bankruptcy court and a court will decide.
Its happening everywhere, and if the VI government doesn't start cutting NOW and make other changes------next, I believe, retired VI government employees might be the next target.
The article below on Central fall, RI could be a court case that could test the government rights to cut retirees pensions.
Providence Journal
Central Falls retirees seek more time to review receiver's plan
5:01 PM Thu, Jul 28, 2011 | Permalink
W. Zachary Malinowski Email
CENTRAL FALLS, R.I. -- The retired city firefighters and police officers have, so far, overwhelmingly turned down the state-appointed receiver's proposal to slash their pensions and medical benefits, but they are not yet ready to try their luck in bankruptcy court. Instead, they are asking the receiver, Robert G. Flanders Jr., a retired Supreme Court justice, to give them more time to study the ramifications of the cuts.
On Thursday, lawyer Michael W. Long, a retired police sergeant, released a two-page letter that he hand-delivered to Flanders' law office in Providence. Flanders gave the retirees at deadline of 5 p.m. to say whether they accepted or rejected a proposal to cut many of the 141 pensioners' retirement income by as much as 50 percent.
Flanders' proposal is designed to save the city $2.5 million annually.
Long delivered 54 votes and 51 of the retirees asked for additional time to meet with lawyers and accounting experts before they make a final decision on their pensions. The other three votes were cast and stuffed in sealed envelopes, so their outcomes are uncertain.
The rest of the retirees did not turn in their ballots at the meeting. They had the option of sending them directly to Flanders.
"We respectfully submit that it is entirely unfair, unreasonable and unrealistic for the Office of Receiver to have expected the retirees to return a decisive ballot on a matter of such great importance," Long wrote on behalf of the retirees. He said the final decision "will have a dramatic impact on their lives and the welfare of their families,'' and they were forced to make a decision with "only five days notice.''
Long and Donald Cardin, a retired battalion chief in the Fire Department, are representing the retirees.
Speaking by telephone late Thursday, Flanders said that he's willing to work with Long and the retirees, but that time is running short.
"We really don't have more time to review this,'' he said. "I don't think that's a realistic option.''
Flanders said the votes will not be tallied until sometime tomorrow. Afterward, he said that he will decide how to proceed.
Posted : July 29, 2011 11:01 am
The 8% deal is a poor idea. The good and essential employees should be getting raises and the bottom tier should go home. The legislature would have shown real leadership if they rescinded their extraordinary pay raise of a couple of years ago. Part-time would be even better for them. Everyone should go back and read "Atlas Shrugged."
Posted : July 29, 2011 12:36 pm
gold is going whacko again today...
http://www.kitco.com/charts/popup/au24hr3day.html
Lot of uncertainty in the future of the economy...
Posted : July 29, 2011 2:56 pm
everyone is taking cuts. You had better get used to this. Our president and all oif congress has put us so far debt we may never get out of this.
Try this on.
China calls all of the the money we owe.
The US can't pay. We are spending more then we take in. There is no one to get money from.NO ONE! Youyr gravey train, just like everyone elses is gone.
They take over.
You loose.EVERYTHING!
Sounds wild but things are going to get much much worse before things get better.
billd
Posted : July 29, 2011 9:57 pm
No, billd, everyone is NOT taking cuts.
China cannot 'call in a note' like some bad tv crime boss.
China cannot and will not invade or foreclose on your stuff.
Please, take the time to learn at least the rudiments of economics before you spout that sort of fox-generated BS.
Posted : July 29, 2011 11:34 pm
SunnyCarib.
If we default on our debt, China might not buy some treasury bills in the future, big T Bill investor. (that is how we have been raising money to pay the interest on our current debt and prosecute 2 wars at the same time and pay for entitlements. If the US sells off Gold we could collapse the Gold market. We are the only country with a debt ceiling. This ride should be interesting.
Posted : July 30, 2011 12:15 am
Topic starter
Today, Monday August 1, 2011, City of Central Falls filed for bankruptcy.
Posted : August 1, 2011 8:34 pm
Does the 8% pay cut also apply to the Govenor and all the members of the executive branch whose salaries are a percentage of the Gov's salary?
Posted : August 2, 2011 1:28 am
i quite agree bill, although i do think most of the monetary damage began and came from prior presidencies further back than this one...granted, i feel president obama is focusing too much on foreign policy than creating jobs (i do not understand the hesitancy to reverse nafta and bring the jobs back home), but the china recalling the loans vibe is alive and highly possible as we probably borrow billions from them daily...the US becoming a third world country has begun...the sick, the mentally ill, the elderly and the poor are always the first focus when this happens...may JAH help us all...
everyone is taking cuts. You had better get used to this. Our president and all oif congress has put us so far debt we may never get out of this.
Try this on.
China calls all of the the money we owe.
The US can't pay. We are spending more then we take in. There is no one to get money from.NO ONE! Youyr gravey train, just like everyone elses is gone.
They take over.
You loose.EVERYTHING!
Sounds wild but things are going to get much much worse before things get better.
billd
Posted : August 2, 2011 2:29 am
The problem is THIS president has spent more in 2 years than ALL OTHER PRESIDENTS in the history of the United States COMBINED. That figure is verified by this white house. I agree previous presidents "both parties" screwed us with entitlement programs because they just can't say no to anyone to get votes. Put when one single president spends more in 2 years than others that is the nail in the coffin. By the way those figures DO NOT INCLUDE the big ominous stimulus package everyone blames it on. These figures put the whole stimulus numbers to BUSH according to the white house so you can't blame that.
The other figure that startled me was I was one of the people who just said well have the rich pay a little more in taxes. However the congressional budget office said that even if you taxed everyone making over just $75,000 per year at 80% that would still not even pay for the "INTEREST ALONE" on the debt for 2 months. That's it. That's how big the numbers are!
The fact is no matter how much we all want from our government it is not financially possible for for 10% of the population to pay for the other 90%. Even all their money is not enough.
Here is the funny but sad part though. The White House budget office and the Congressional budget office both said that if we had a flat tax of just 15%, meaning EVERYONE pays 15% of what they make regardless of the amount, with NO deductions then we would actually have a surplus every year. Now you say some people should not pay the 15% but keep this in mind, by everyone paying the 15% that ELIMINATES ALL OTHER TAXES....... ALL. No sales tax, no PAYROLL TAX, no property taxes, no school taxes, nothing. So really even the poorest of poor would really not pay much if anything more. You all know we pay so much in our paychecks. Remember just think of your paycheck with ZERO deductions!!!!!!!!! Yipee!!!!!
What all we citizens need to do is spread the word about what this flat tax program would mean for all of us, rich and poor. The rich would actually pay more because no deductions. So the sad part is this can all really be fixed almost overnight but nobody knows enough about it. I encourage all to do their own research on this subject and contact your representatives and tell them to just do it.
Then nobody would have to risk losing their jobs or pensions and the economy would start to turn around knowing the economy is stable then big company's will start hiring again.
Also we just need a president any president any party that knows what 3 nobel prize economists said this month. You can not spend your way out of a bad economy. You must cut back on spending. It works for your household, it works for business, and guess what it works for government. Who would have thought you have to spend less than you take in. Wow who knew!!!!
Posted : August 2, 2011 3:30 am
Back to VI debt: the USVI is now more in debt (per-capita) than were Boston, New York, Philadelphia and Washington, D.C., when each of those cities was placed in financial receivership and "ruled" by financial managers in order to put their finances back on track. Unless (or until) we have representative Senators (rather than elected at large on each island), we will never be able to contain spending on these islands. NO ONE is responsible; and they all know they'll be re-elected.
Posted : August 2, 2011 1:51 pm
PLEASE NOTE THE DATE OF THIS QUOTE!!!!
>
>
>
> The Quote of the Decade
>
> "The fact that we are here today to debate raising America's
> debt
> limit is a sign of leadership failure. It is a sign that the US
> Government
> can not pay its own bills. It is a sign that we now depend on ongoing
> financial assistance from foreign countries to finance our Government's
> reckless fiscal policies. Increasing America's debt weakens us
> domestically
> and internationally. Leadership means that, 'the buck stops here.'
> Instead, Washington is shifting the burden of bad choices today onto the
> backs of our children and grandchildren. America has a debt problem and
> a
> failure of leadership. Americans deserve better."
>
> -- Senator Barack H. Obama, March 2006
Posted : August 2, 2011 1:52 pm
I'm a big proponent of a flat tax for all individuals AND corporations. There are several U.S. conglomerates that made billions in profit last year and didn't pay a single red penny in taxes! A flat value-added tax for all solves this problem, takes care of illegal immigrants overwhelming schools and hospitals since they would pay their part through consumption, etc. Further it would reduce BILLIONS per year in IRS/tax red tape and simplify everyone's life.
I've always thought the number should be about 17%, not 15% but I'd be happy to start at 15%.
Posted : August 5, 2011 10:37 pm
