Monday, April 07, 2014

Righeimer's Pension Solution


Almost NOBODY has watched the Time Warner Cable Local Edition presentation from February, 2014 (Published on 2/25/14) in which Leslie Leyton interviews Costa Mesa Mayor Jim Righeimer about the current condition of our pension problem.


This short tape - 4:30 long - is well worth the time it takes to watch it.  As you go through the tape you'll find that the mayor has new information for us.  Like, for example, the unfunded pension liability that he and his sycophants have been yapping about as being "$238 million" is, according to Righeimer, actually $600 million!

And, his solution for our city is to have all the current employees abandon their present pension plans and return to the old formula going forward.

He also mentions municipal bankruptcy during his little presentation. 

I've provided some snippets for you to listen for as you watch the tape.  Enjoy...

Referring to the pension problem, "... what you can really do to fix it, which isn't really a lot.  The state has to fix this problem, clearly."

"Our city had a liability for pensions ten years ago of 200 million.  We now have a liability of 600 million."

"...service insolvency - which is you just don't do things.  All of a sudden you're not fixing the streets, you're not fixing the curbs, you're not taking care of the flood control, the parks, whatever other issues you have.  It just doesn't get done."

"Our city, and most cities in Orange County, we have a lot of money, we just do.  We may spend it improperly, but we still got money.  So, there will be other cities in the state that will file BK before we do, and in that process we'll finally get the state to solve the problem."

In response to a question about how long? "Probably five, six years at the most you're gonna have, maybe, another half dozen cities file BK."

"What we need to have happen is existing employees to go back to the old pension plan going forward."

"It's not gonna happen until there's the political will..."

Take four and half minutes and watch the tape...


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Anonymous Arthur Nern said...

Bankruptcy has been his plan all along. He just needs to be re-elected first. His contributor Jones Day handles Detroit's BK.

Why does Righeimer hate Costa Mesa so much?

4/07/2014 06:15:00 AM  
Blogger Gericault said...

Our pension liabilities are now $600,000 million? I can just hear the groans of anger rising up fom the Newport Mesa Tea Partiers. Righeimer said it on the TV so it has to be true.

4/07/2014 07:31:00 AM  
Anonymous Where's My Coffee? said...

Well, I guess this bozo had better get busy and bring some serious industry back into this town. Property tax isn't going to cut it.

On the other hand, he's cried wolf so many times its hard to believe what he says. Maybe we should throw another party as a fundraiser for this city for a change.

4/07/2014 07:59:00 AM  
Anonymous Mary Ann O'Connell said...

1) Well the interviewer sucks. Sorry, but she should have made him explain his numbers and his though processes and the way the money escalated. She shows her extreme prejudice.
2) He backs off the $600MM pretty quickly and garbles that part.
3) Really Jim, the State should fix it? The big bad state we have to divorce ourselves from via a charter? That same state has the answer and salvation?
4) He had a lot of "really smart" people put together a report that had a solution he ignored.
5) He NEVER mentions increasing revenue. Hell of a business genius who doesn't want to raise revenue.
6) Never mentions that all the employees have renegotiated their pensions.

4/07/2014 09:39:00 AM  
Blogger kwahlf said...

So Righeimer says our pension liabilities are now $600,000 million and yet he never intends to pay one cent toward paying it down?
Yes, this financial genius is setting us up for a BK, bankruptcy.

The last time Righeimer gave financial doomsday predictions we ended up with a budget surplus two months later.

I don't trust anything he or Steve Mensinger say.
Both of them have lied to us too many times.

4/07/2014 01:10:00 PM  
Anonymous Terry Koken said...

I notice that he didn't have his shoes off, and never consulted any of the numbers bigger than ten, therefore. At least, he never looked down at them, unless he did so while he wasn't on camera...

Hey, that's what we get for electing an arithmetically-challenged mayor.

4/07/2014 01:53:00 PM  
Anonymous Casual Viewer said...

This is Jim's big issue - he hopes to ride it into re-election. The question is, what has he done in the years he's already been on council except make a lot of people mad.

4/07/2014 04:03:00 PM  
Blogger Marquis said...

Righeimer always talks down to his audience, because he really thinks he's the smartest guy in the room, even though it's abundantly clear that he is not a smart man. I always wonder if he consciously makes up stuff, knowing that it's BS, or if he really believes the nonsense he spews. Seeing how dogmatically the same lines are used by Riggy and his cadre of followers, I'm pretty sure that none of them have the critical thinking skills to even consider that they might not be right. Normally, it would be kind of amusing to watch a delusional buffoon act like he's the smartest guy in the room - like Homer Simpson! But in this case, he's wrecking my city, so it's not really very funny. The only upside is that his ego won't allow him to stop doing what will ultimately be his undoing.

4/07/2014 04:29:00 PM  

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