Unions want $100M in federal money to aid Detroit pension deal
Union leaders in Detroit want $100 million in federal funding earmarked for homeowner assistance to help make up a $3.5 billion shortfall in the retirement system for city workers, The Wall Street Journal reported Wednesday.So, basically, unless I'm missing something, the unions are extorting money from the state that was obtained to help homeowners to funnel into pensions. Okay then. Now, I'm not entirely unsympathetic to the workers here. They were sold a bill of goods when they took their union city jobs, that they would have a fat pension at the end for sticking it out. Nowhere in the fine print did it state "Unless the state runs out of money."
Under the plan being discussed by federal and state officials, Michigan would give Detroit $100 million earmarked for the state from a U.S. Treasury Department fund established in 2010 to provide relief to struggling homeowners in the wake of the housing crisis, according to the report.
There's a number of factors at work here. First and foremost, why is there a $3.5 Billion shortfall? Did the number of pensioners grow unexpectedly? Were they all living exceedingly long lives? At some point someone had to have done the math to realize the money was going to run out - but then what? It's not like the city can just say, okay, anyone hired after such-and-such a date is not getting a pension.
But just taking federal money earmarked for another situation entirely? Isn't that, oh, stealing? I'm trying to figure out how on earth they think this is going to fly. Because if I were in charge of distributing federal money, I would make sure this state never got a single red cent ever again, because obviously they can't manage their money to save their lives, and anything that flows into the state will wind up in union coffers.
At some point, you run out of Peters to rob...
That is all.