Daily Archives: August 6, 2012

Aug 6 2012

Sen. Emmerson: Dems Need to Work on Pension Reform – Palm Desert, CA Patch

State Senator Bill Emmerson (R-Hemet) has called on state Democrats to make good on Governor Brown’s 10-point plan for public pension reform.

In a letter, published this weekend in the San Bernardino Sun, Emmerson calls for Democrats to either produce a proposal themselves, or to move to action on Republican backed State Constitutional Amendment 13.  Emmerson says SCA 13 is an amendment “that would control pension costs and end abusive practices.”

In January, Governor Brown said a the end of his State of the State address, “As for pensions, I have put forth my 12-point proposal. Examine it. Improve it. But please take up the issue and do something real.”

Republicans then put forward SB 1776, which is the framework for the Governor’s proposal.  According to Emmerson, Democrats have tabled the proposal indefinately.

via Sen. Emmerson: Dems Need to Work on Pension Reform – Palm Desert, CA Patch.

Aug 6 2012

Tubby Smith Contract Includes Plenty Of Performance Incentives – SB Nation Minnesota

It was a relief for the Minnesota Golden Gophers to finally finish up coach Tubby Smith’s new contract, which he signed back in July. Tubby had a few more years left to play on his then-current contract, but they had been spending the entire off season working to get the new one in place.

Looking at the new contract, there are two performance incentives that Smith looks like he will be able to attain as long as his Gophers can avoid the season collapse that they suffered last season without Trevor Mbakwe — a $50K bonus for finishing fourth in the Big Ten conference, and a $100K bonus if they can get into the NCAA tournament. TwinCities.com has more info on the contract:

The total value of Smith’s remaining contract, which runs through the 2016-17 season, is about $11.5 million. His incentives are generous compared to those of other Big Ten men’s basketball coaches.

Those incentives are likely in part to keep Smith hungry for the post-season after the disappointments that marred the 2011/2012 campaign for Minnesota. It certainly wouldn’t hurt his odds if their star player Mbakwe was back at full tilt by the time the season began.

For more on the Minnesota Golden Gophers, check out The Daily Gopher. You can also learn more about college basketball around the nation at SB Nation’s College Basketball hub.

via Tubby Smith Contract Includes Plenty Of Performance Incentives – SB Nation Minnesota.

Editor’s note:  Minnesota’s highest paid public employee.

Aug 6 2012

AT&T (T) Workers Union Contract Extends Five Days | News Today Digest

AT&T Inc. (NYSE:T) and the Communication Workers of America late on Saturday decided to a five-day extension of a deal for 22,000 workers and reported that meetings were going on.

The discussions involve wireline workers in Alabama, Florida, Georgia, Kentucky, Louisiana, Mississippi, North Carolina, South Carolina and Tennessee. Both sides reported that the present deal would run until Thursday 11:59 p.m. Eastern.

The extension would let discussions carry on between the firm and the union, as per stated by the report.

One of the most critical factors in measuring the performance of a company is its Return on Assets ratio, which is an indicator of how profitable a company is relative to its total assets. AT&T Inc. (NYSE:T) recently had ROA ratio of 1.74% while its market capitalization was 218.15 billion.

Previous month, AT&T Inc stock price volatility was 1.69%. In its share capital AT&T has 5.81 billion outstanding share,s among them 5.80 billion shares have been floated in market exchange. AT&T stock institutional ownership remained 56.61% while insider ownership was 0.05%.

The stock is ahead if its 52week low with +45.70% and lagging behind from its 52 week high price with -1.83%. Company’s beta coefficient included 0.56. Beta factor evaluates the amount of market risk associated with market trade.

AT&T stock traded with a starting price of $37.87 and throughout the trading session climbed at a high of $38.00 and later when day-trade ended the stock finally surged +0.11% to $37.58 with a relative volume of 24.29 million shares.

Its competitor Verizon Communications Inc. (NYSE:VZ) shares opened the session at $45.13 edged down -0.36% to settle at $44.46 with a relative trading volume of 13.00 million shares and Sprint Nextel Corporation (NYSE:S) shares opened the session at $4.34 dropped -0.47% to settle at $4.27 with a relative trading volume of 37.62 million shares.

via AT&T (T) Workers Union Contract Extends Five Days | News Today Digest.

Aug 6 2012

Daily Chronicle | Pressure rising for Ill. pension reform

CHICAGO – Gov. Pat Quinn up the pressure on lawmakers to overhaul Illinois’ pension systems and warned on Sunday of massive future budget cuts for school districts as a consequence.

The Chicago Democrat supports a plan to make suburban Chicago and downstate school districts pay their own retirement costs, which the state currently pays; Chicago pays its own pension costs.

But Republicans have largely objected to the shifting plan, claiming that it will burden cash-strapped local schools and increase property taxes.

Quinn has called an Aug. 17 special session for lawmakers to deal with pensions, saying the job can be accomplished in one day from existing legislation that’s pending.

On Sunday, his budget office released figures claiming that Illinois’ unfunded pension liability is increasing so fast – $12.6 million a day – that it’ll cost school districts more in the long run because lawmakers will have to slash education funding to pay increasing retirement costs.

According to the study, suburban and downstate schools districts would pay $49 million in new pension costs for the 2014 fiscal year with shifting costs over time. Without a pension overhaul, those same districts would see their budgets slashed by $152 million.

“Illinois cannot continue down this path at the expense of our children,” Quinn said in a statement.

“We must enact comprehensive pension reform that eliminates the unfunded liability to repair our pension system and give the next generation the education they deserve.”

Legislators failed to come up with a plan to address pensions during their spring session earlier in the year. Top lawmakers had been meeting over the summer to find a compromise, but negotiations weren’t successful and delved into talks about the equity of school funding.

Quinn announced the special session to the surprise of top legislative leaders who had asked for more time to study the issue. Republican leaders did not immediately have a response to the study on Sunday.

Illinois faces at least $83 billion in unfunded liability between its five pension systems. Credit rating agencies have threatened to lower the state’s rating unless lawmakers ease the strain on the budget. Also, a national study earlier in the year ranked Illinois as the worst at funding its pension systems.

via Daily Chronicle | Pressure rising for Ill. pension reform.

Aug 6 2012

Subcommittee on Employee Relations to review state employee contracts | MAPE.org

MAPE’s and AFSCME Council 5’s contracts, which were ratified by members last week, will be scrutinized by the Republican majority in the Legislature when ther Subcommittee on Employee Relations meets at 8:30 a.m. Thursday at the Capitol. the subcommittee’s agenda is below:

Thursday, August 9, 2012

Subcommittee on Employee Relations

Chair: Senator Mike Parry

8:30 a.m.

Room 107 State Capitol

Agenda:

I. Review/approve minutes of the April 24, 2012 meeting

II. Review/approve/reject proposed state collective bargaining agreements American Federation of State, County and Municipal Employees, Council 5 Minnesota Association of Professional Employees

III. Other items as approved by the chair

via Subcommittee on Employee Relations to review state employee contracts | MAPE.org.

Aug 6 2012

Bankrupt Cities in USA a Stark Warning of a New Crisis | Live Trading News

Going bankrupt is the last resort for some local governments in the United States to protect themselves from being shut down.

San Bernardino, near Los Angeles, filed for bankruptcy protection last Wednesday. It is the 3rd city in California to seek relief from its creditors in less than 5 weeks.

In late June, Stockton, an agricultural community east of San Francisco, became the largest city in the US to file for bankruptcy protection as it grappled with the aftermath of the housing bubble and high public-pension costs.

In early July, Mammoth Lakes, a ski destination, filed for bankruptcy protection after it lost a lawsuit in a soured real-estate deal.

Nationwide, Central Falls in Rhode Island, Jefferson County in Alabama both filed for bankruptcy in Y 2011. Harrisburg in Pennsylvania and Boise County in Idaho also filed for bankruptcy, but their claims were rejected.

The majority of Chapter 9 bankruptcy filings have been submitted by utility authorities, special districts and other taxing entities. In Omaha, Nebraska eight sanitary and improvement districts have filed for bankruptcy since Y 2010.

According to http://www.govering.com, a website that tracks bankruptcy filings in the US, there have been 27 municipal bankruptcy filings and seven city and locality bankruptcy filings since Y 2010.

Bankruptcy has become a way for local governments that have been in financial crisis to tide over. Take San Bernardino for example, the city with a population of 210,000, is facing financial difficulties with an expected deficit of US$45-M this fiscal year.

The city announced that the bankruptcy filing would not affect services in the city. The filing follows a city council vote to declare a state of fiscal emergency 2 wks ago.

California’s pension-related costs rose 20-fold since Y 1999. Many US cities have been dragged into financial crisis because of the issue.

A recent Pew research survey found that the gap between state assets and their obligations for public sector retirement benefits is US$1.38-T. It rose by 9% in Y 2010 alone, and it will likely keep rising until these obligations are renegotiated.

Once the restructure of the finances is over, the city can get out of bankruptcy and operate in normally.

In Y 1994 Orange County in California filed for bankruptcy protection. It was the largest municipal bankruptcy in US history at that time.

After filing for Chapter 9 protection, Orange County successfully sued its financial advisers, collecting US$600-M in settlements and jury verdicts and finally completed its financial restructure.

via Bankrupt Cities in USA a Stark Warning of a New Crisis | Live Trading News.