City Pension Funds Sitting On $11.5 Billion In Red Ink, City Hall Oblivious -- Report
The city of Los Angeles might be facing a $400 million deficit, but a tide of red ink much larger than that confronts its pension funds, according to CityWatch LA. Combined deficits at the city's two major pension funds amount to a near state-of-California-sized budget hole: $11.5 billion.
What's more, CityWatch argues that the city is doing some self-delusional accounting to mask the size of this whopper. The city, it states, measures the pension funds in terms of the "actuarial value" of their investments instead of using the actual (and $7 billion lower) market values, putting the deficits at $4.6 billion on city books.
"It is like the homeowner in denial with his house now worth only 60% of its value of several years ago, but insists that the house is worth 85% of its previous value," writes Jack Humphreville.
CityWatch argues that early retirements among city employees will only make the deficit worse as more people will end up pulling from the funds instead of contributing to them. As it stands, the pension deficits amount to $40,000 for every person who voted in the last citywide election, according to Humphreville's calculations.
Los Angeles Angels vs. Los Angeles Dodgers
TicketsThu., Mar. 30, 7:07pm
Los Angeles Clippers v Los Angeles Lakers - Verified Resale Tickets
TicketsSat., Apr. 1, 12:30pm
Los Angeles D-Fenders
TicketsSat., Apr. 1, 6:30pm
Los Angeles Lakers v Memphis Grizzlies - Verified Resale Tickets
TicketsSun., Apr. 2, 12:30pm
[Spotted at LAObserved].
Got news? Email us
Get the ICYMI: Today's Top Stories Newsletter Our daily newsletter delivers quick clicks to keep you in the know
Catch up on the day's news and stay informed with our daily digest of the most popular news, music, food and arts stories in Los Angeles, delivered to your inbox Monday through Friday.