GASB 45 - Big threat to Cities and Towns

[rocky]

The talk on pension liabilities elsewhere here, makes me want to start a new thread on GASB 45.

Many of you will recall a few years ago Corporations taking HUGE billion dollar hits for pension liabilities.

Now its the turn of Cities and Towns across this country. Even small towns of say 5000 people will face liabilities of $25 plus MILLION dollars, far in excess of their annual tax revenues. Now multiply that up for a city with millions of people and the number grows into the HUNDREDS of million dollars

And all to "improve" bookeeping.

Its going to ruin cities and towns

[dgipalo]

Originally posted by rocky
The talk on pension liabilities elsewhere here, makes me want to start a new thread on GASB 45.

Many of you will recall a few years ago Corporations taking HUGE billion dollar hits for pension liabilities.

Now its the turn of Cities and Towns across this country. Even small towns of say 5000 people will face liabilities of $25 plus MILLION dollars, far in excess of their annual tax revenues. Now multiply that up for a city with millions of people and the number grows into the HUNDREDS of million dollars

And all to "improve" bookkeeping.

Its going to ruin cities and towns

Actually, it's nothing new - simply a recognition and accounting for the promised pension benefits. So, unless there is a vision on the part of some polititians to kill off the the old folks and re-process them to Soylent Green, these are liabilities that existed all along. Doesn't make it less daunting when you see the size.