For decades, California courts have prevented any cuts to luxurious public employee pensions, but the California Supreme Court is now reviewing arguments in a case that could allow slashing benefits.
The Obama administration has picked seven people to serve on a financial control board overseeing the restructuring of the Commonwealth of Puerto Rico’s $70 billion debt burden and $43 billion unfunded pension liability. Under congressional legislation signed after the island
With a Congressionally appointed federal control board about to take over Puerto Rico’s finances, the U.S. territory just admitted that its massively spiked public pension plan owes another $43 billion.
Despite Congress being ready to pass special legislation to restructure its $70 billion in debt, the Governor of Puerto Rico announced that the U.S. Territory will default on July 1.
Although House Speaker Paul Ryan (R-WI) warned that Congress needs to “bring order to the chaos” in Puerto Rico, conservative House Republicans are giving the cold shoulder to a plan that would let Puerto Rico wipe out $33 billion of its $73 billion debt in bankruptcy.
The prices of California’s water and sewer bonds are beginning to take a nose-dive after Governor Jerry Brown issued the first-ever mandatory statewide cut-backs to water use.
