The city of San Jose has fired over 100 cops, needs to fire another hundred. The pension system is causing the city to consider bankruptcy, though the unions and Democrats prefer default and non paid vendors—as long as those who pay bribes to work continue getting paid.
The bond rating agencies have noted the fiscal problems—and that is costing the city extra money.
“A bond downgrade by Moody’s Investment Services is likely to cost San Jose an additional $350,000 this year”
But that is just between April and the end of June. At that rate for the full 2012-13 fiscal year the city will lose another $1.4 million .—money that could go to pay for cops, if the unions had allowed it.
Silicon Valley / San Jose Business Journal, 3/28/12
Moody’s Investment Services
A bond downgrade by Moody’s Investment Services is likely to cost San Jose an additional $350,000 this year.
That is what city officials are projecting after Moody’s dropped San Jose’s credit rating Monday from Aaa to Aa1 for general obligation bonds and from Aa2 to Aa3 for lease revenue bonds.
The bonds are still considered low risk but anything below the highest Aaa brings additional borrowing fees and costs.
Moody’s cited the city’s shrinking general-fund reserves and mushrooming employee pension and retiree health care costs as the reasons for the downgrade.