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It's showdown time in California.
The Oakland City Council votes to -- eighty police officer positions in an effort to trim the city study million dollar deficit the main issue here though.
Its pension -- -- Joining us is Joseph -- -- -- -- Chief Executive Officer Joseph welcome the program -- having me about his the stories on the stand -- Oakland says that eighty cops you fire it.
Unless you accept concessions.
On your pensions.
That's the standoff on C this is again ancient what's -- -- I think that the dangers -- But it also to remind you things that happened in the private sector awhile ago as well in terms of -- restructuring and having that.
But the public sector has deferred that issue because publishers don't really wanna deal with the fact.
But -- it.
It's not a simple solution.
I mean that is negotiating stance.
-- going to have to be a combination of both.
Benefit cuts and taxes and the notion that you need more comprehensive reform.
But what we don't even understand right now is looking at these Oakland or or California.
That's just sort of the tip of the iceberg it's.
No one can it really agree on the how big the numbers are because of the the math and the government accounting is different than the math in corporate.
Understood -- you're the expert in the field but everybody agrees I I think there is broad based agreement that we cannot.
Keep the promises that we've made to current municipal -- in terms of that -- we can't do.
No matter what number you come up with we can't pay that amount of money.
So the rubber hits the road at this point and I think that this spoken situation will be repeated elsewhere in the country well I think -- -- -- open besides just the whole state.
California is doing dealing with -- that.
But there is this -- -- is the first time those that they've really gone after existing pension benefits.
And stop the cut them all pull them back.
Well Illinois tried to do something I think there have been other states that Colorado has been trying to claw back and doing changing.
Part of your problem is that.
Pension benefits are often protected by state constitution and which -- in terms of making the promise and plus the American -- have a central.
That's the fairness that that deal was cut.
The pinch river crew who relied on -- in in in that in the past work twenty years that was one of the reasons you run may have except here she may have except for the lower salary as a result.
But by the world -- changed in that that is true.
-- the the issue here is that you're not going to be able to cut your way out you're not going to be able to -- mean in terms of putting -- budget.
Because you'll have a multiplier effect of problems -- you still need growth.
You still need to be able to try to be able to cut all understood do you think that the end point is a federal viola.
I think it's going to be pushing towards that because it can't come unfortunately -- is saying yes on -- it because there's no way around I think the problem will be.
That's -- people go I don't think it'll happen because of there it is both a huge moral hazard and there are the fact that there are states who have kept their house in order who will say.
I'd I'm not going to let that happen.
But to bail out California for -- and house after I'd -- I'm okay.
You paid if they don't get a federal bailout you have mass -- -- education police fire fighters told -- is Jan.
You have massive cuts there's no way around and you have who have budget restructuring and cuts and that's not Hansack was all right restructure and have a cup to the bottom flood as sort -- -- company right -- Enough sense to me that we're following rules that were created back when -- horse and buggy -- you mentioned these state constitutions.
Think about them why are we still adhering to these rules.
Because that's part of our that our national traditional -- and an -- that we don't rules after weight on her way to create.
I'm not a -- a -- -- a threat object to a trained as a -- are you telling -- that we can you.
Are you telling me that we can't set a policy of lawyers on back.
And get a lawyer -- legal fix for this situation I think -- Colorado is trying to do some things in there is the -- IBM try to do and I think -- did some things we've been supported by the law but.
But again you're going down a path of thinking -- that.
Would follow 50607080%.
Of the problem you know now it's -- a plan fund now that may help in the future the last question and I guess that's what I wanna say.
You keep suggesting that that we need to grow right now and say -- -- -- can't we just take a hit.
Should the American public be -- to take a hit in a slower economy so that we heal ourselves for the future.
Yes the realism.
Knowing for certain agreeing on the numbers which we can never do but also understand that sacrifice is ahead for every one.
And we don't see the political will in Washington from the top.
Down in terms and terms of that notion.
A comprehensive solution that -- both cuts and taxes I can sum it up by saying that you agree with us -- that Oakland is again ancient.
It could be could be a cut so it just if Michelle -- thank you for joining us it -- -- appreciate it to discuss.
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