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-- -- He's joining handset welcome you're the Texas comptroller so you're in charge all the money.
Right -- -- Texas front currently live in Austin at -- positions for six and a half years so thank you for coming on.
To show the -- thank you we've been talking about Detroit for several days now since that chapter nine bankruptcy filing last week.
And talking about Detroit and talking about state of Texas.
Seems like they don't parallel each other so much Detroit's -- collapse of the auto industry content -- too much about it.
On -- Texas is doing a lot to increase jobs.
One of -- break points in the economy these days but -- your thoughts on what happened to.
I think he missed opportunities and the ethic really your policies matter Texas lost 4% to go -- and all that post and a half a million jobs.
If you have a little -- up a -- And I texas' unemployment now six and a half percent and Detroit sixteen plus percent -- attacked -- And I guess it.
The point is is -- feel welcome mat out and you have good policies but if you're risk averse you can take a look you see this impending storm clouds.
Why they're now only 700000 people in Detroit got -- one point and they -- it it's been gone for sixty years like OK so.
When the crisis happened what what did Texas do differently where they said OK health care let's bring -- medical jobs.
Let's try to get.
You know Silicon Valley to come here what what did taxes due to create jobs that -- other states should.
Texas in the late eighties lost pitcher in this who -- diversified we are now more diverse economy than either Canada -- Mexico and so they did attract IT.
They did attract financial services they did expand beyond their base of oil and gas -- the award a one trick pony in Motown was sort of a one trick pony and when -- put.
All of your eggs in one basket if you break the injured you toast did not handgun texas' pension liabilities.
Yes in effect if you look at the employees' retirement system which is statewide and teachers' retirement system.
We just both chains both of -- -- that increased his contribution.
As of this legislative session of the employees will increase their contributions they've raised the retirement age but two years.
They do that the legislature does this every few used by contrast which is where.
So the parallel is with Detroit we -- we had cities.
They do not have the discipline necessary -- Detroit didn't.
We did a study on local pension cities and and we found -- wanna tell us anything.
They don't want to put it on -- I'm certain Texas cities and trouble.
Houston Rick Houston has a problem and Houston has unfunded liabilities in the billions.
And will commend the mayor of Houston and these Parker she's tried to get information.
She found an open records request but how they're being funded and they went to court.
And they said no we're not gonna give it to you and the judge ruled in her favor -- it's that -- yes it's public but we're.
Not gonna make -- you for a number of years until all legislative all legal remedies were exhausted.
Statewide pensions have a combined liabilities 250 billion dollars.
It wasn't all pensions now does that -- may be true kind of the locals.
But as -- say that the ERS -- -- arrests have now made it with a significant shift this cycle to go ahead and reduce that.
And you are saying.
It's all about.
Transparency right getting the information out to the people who need it.
And it also exposing their expectations if you think you could have an eight and a half percent return on -- -- Richard not.
And so I got a bill passed.
House bill thirteen which says you -- it's -- legislative bill about pension -- parents who they'll have to tell you.
What they expected return to be with the actual -- is and you're going to see a large delta in some cases I had a gentleman.
From the firefighters in -- which is a suburb of Dallas called me up irate that even wanted to know is that why you need an -- because I -- to know whether or not the folks who live in Denton county are going to have a problem.
He's able trust and I say -- we can't trust you because your numbers don't look right.
And -- -- the upshot of that.
That the bill passed.
Are you did they had very good and other cities -- -- send that are trying to.
Have a red flag I'm innocent killings and a great job by contrast.
Since -- is done a great job how does it -- typically take to amend.
-- local systems it's very strange.
Lobbyists somehow got a bill passed that all of the legislature can fix it.
Which means the mayor is really.
In trouble trying to get all this fixed it and it could take years she's been trying for very long time to improve the pension.
System in Houston in she's been struggling.
Senna Tony has been very proactive and it depends.
But when you have folks not willing to talk about what the real trouble is hadn't had exit.
Right right especially when you see something in Detroit there's not keep referencing Detroit because there are dozens of cities across the nation that could be the next trend here -- are clear so -- -- In terms of pensions as -- retiree health care.
Didn't -- -- in state -- state of Illinois you look at -- -- you look at Stockton.
-- double commended be treasurer Rhode Island funeral Mundo.
She did a fantastic job about laying bare the pension problems in Rhode Island she was looking -- bus service limiting.
And Detroit needs to have the same kind of intestinal fortitude.
There's talk now that perhaps you're -- sell some of their land -- physically sell the land.
To cut down on the debt -- then you're gonna see what it's physically beat.
City become perhaps small city.
The problem is that they had like seventy or 80000 homes that are just Darrel -- public who so who's wonder why.
I mean how do you -- is that what -- intervention plan.
Well I don't now we had several chats coming in now so let me get to them.
Fox News US and seen that is that saying he's very -- about where he lifts California.
Looking to relocate because -- democratic leadership has put us in a huge deficit hole.
And their increasing taxes sounds a lot like what's not in the White House pretty scary speaking of taxes that's interesting.
In reading -- property taxes were pretty hot.
-- up they increase taxes.
And it -- what they have this doesn't this doesn't that we don't do that.
But we have to do -- Detroit has doubled the number of retirees as folks actively working.
And so you keep squeezing -- little turn up and the terps getting kind of out of breath and people are working if they keep fleeing that city.
-- -- -- problem Susan thank you so much for coming on Texas comptroller.
A public accounts thank you thank you and good luck with -- task in New York which he told me about break and you bring.
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