Taxpayers eye new plan to buy out public workers
An offer they can't refuse?
- Duration 8:19
- Date Oct 20, 2012
An offer they can't refuse?
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Taxpayers by making government workers an offer they can't refuse once say that looking to -- out public employees that they retire early just like the private market does.
With the majority of states drowning in pension debt is this how to cut costs and save taxpayer money.
Hi everyone I'm Tracy Byrnes in per -- up with Sony welcome to cast and in.
-- passing through this week weighing Rogers Jonathan -- late the other Melissa Francis joining us up so joining us -- Dorsey welcome everyone.
Right wing -- now is buying out public workers the best way to save some taxpayer cash.
I don't know that is the best way but it's certainly a great way to do that we know that from the private sector that that worked all of these public pension plans -- massively underfunded.
You know -- they based everything on an 8% return and not getting into getting a form of 5% return some even less than that.
-- Susan calpers two of the biggest ones in California massively underfunded it's good -- USA hello Greece if we're not -- -- -- -- Melissa what do you think -- states do this to save some money.
You know the concern is that we're gonna end up with fewer state workers -- now.
You know smaller government is better in my books okay we're gonna save my audience that seemed to shrink the size of government it sounds like a home -- me.
I hope they're doing enough but it.
-- though you're worried that we yeah we the government might lose out some valuable employees right.
-- absolutely I mean it's not just about having small government is about having Smart efficient government the size.
Is relative to the value they provide and if these buyout succeed.
In losing the talented employees were providing great value to taxpayers.
In the short term bottom line gains.
May be long term public sector -- in terms of what services we taxpayers are getting you know this is a tool it can be used I'm not saying.
You know you can't ever pursued buyouts but -- think that it's a magic bullet is wrong headed thinking.
Let's you -- scares me but -- you know more is not necessarily good I mean network of Washington particularly DC is increased they are there hiring in government jobs about 38.
Thousand people in the last three has.
And by the way and he can't overcome the good the deficit in in the hiring -- just by doing that.
Governor -- -- you certainly know that the federal employee roles are smaller than they were under President Reagan right now so.
You know we do we have smaller government that I thought yeah this president -- government.
But Blackwell and a score and you a great point in your notes and he basically said that you -- -- the money now while it's still they acts.
As did a -- pointed out private corporations do this all the time and oftentimes.
The workers are better off because those -- -- been counting on.
Are gone once do you know what.
Hits the fan and the company is -- -- insolvent we have insolvent public pensions the hundred largest public pensions have.
What a trillion dollars in unfunded liabilities so yes I think take big deal and let's work in Atlanta and eventually.
Action and corporate let's shrink the size and scope of government and get -- back to its actual constitutional role if -- follow that you'll never need to pay buyout.
It'll never had a municipality.
A go its -- time.
I feel about Alabama governor offering this -- basically offering some health care payments -- -- to take 151000 dollars in cash.
It's not a time money is it worth considering.
Of course is worth considering because of -- they've been the deal might not be there but as cities are spending.
Of their revenue comes from the state they're not balance -- their budget.
The government the federal government has 40% -- budget that they're borrowing from other countries so once you have any job of austerity measures you will be put in place.
You're gonna feel this most of the local level but -- have to start laying off people so you take the money help as it may not be there later into the State's point of view.
You're either gonna -- now -- put him through unemployment so it's it's win win for the states.
Kristin you know you can't deny that our pension funds are broke.
So we didn't know what you can maybe -- -- the -- them.
Yet it's one -- it may be useful and a lot of circumstances Tracy but you know but again like to remind everybody that government employees free -- provide valuable.
Public services not just simply a matter of items on a balance sheet but immediate -- short.
When it's -- and finished jobs have been that you're providing those services -- the most efficient way for taxpayers.
And if you and we all firing out Taliban imposed on us for providing that benefit and that's a problem.
-- -- Think officiate but there's nothing efficient about government spending especially all these aerial -- -- has no role lot.
00 come on renewable OIQ are you I'm much comes question -- the government has spent far -- today.
It where it essentially insolvent especially in those areas like healthcare like education like science in which it has no constitutional -- I -- talk about -- valuable government employees let's make him more valuable and actually put them in the private.
We heard like a way Hanover theatre if it was a they don't have and -- end -- -- that I think about it.
But but -- did get you -- they are that there are cases Vincent Vincent is a fat so you can't give up to argue with the fact where.
Have have privatized.
Their fire department.
Are they are security departments things like that and it's cheaper so don't tell me that they are doing a better job in -- doing -- the last month it's not true and the season impact that -- expansion of the -- -- -- well yeah I I was sent around from -- -- -- to another for about six hours -- trying to get -- -- -- about.
Another axe to grind for another time and in a perfect example is the post office they need to shed hundreds of thousands of employees -- -- -- burdened with these legacy costs a lot of them pension and health care related big hit this fifteen trillion dollar late and sorry -- feels like trillion billion dollar limit.
You know they if they can't borrow any more money they can't keep running at the -- isn't a perfect example the place where they should be spending last letting people retire trimming.
And this from a woman who actually supports the -- I -- I had a lot of yeah.
What do you need to -- look like all the government needs to be smaller in order to work spend less fewer employees tighter smaller like private industry let me say one thing Tracy -- -- worker I think I want this because I don't trust my -- now I could be it could be broke I would be in the streets like the bricks if I'm not give -- Give me the money now let me go home let me work with.
Think it's a great point that is sure we actually I attended these problems like this until we can fix them we let them go is it that let them -- for decades now and they blow up his way to point it out just like Greece Spain -- those other collective -- entitlement states.
Just like -- I take retirement package and I come -- down by you right.
-- -- -- Lou may end up her bid up.
What what does that about the pose problems that -- -- they'd -- -- about 200000 people 100000 through -- -- -- through attrition.
This is exactly what's going all the cities and state -- and nobody disagrees with that you don't wanna get rid of -- to workers.
Oh they simply don't have the money -- -- -- is laying off school waltzing guard right now.
They're cutting services dramatically because they simply don't have the money and a lot of it comes to these pensions and this ridiculous assumption that -- is talking about this they have present.
Nobody's making that because that cities and states are having to you don't like -- people -- cut services or vote.
Christian though yeah it could you argue Christian now that you know.
People taking a buyout could actually prevent a bailout down the road.
Well you know look -- I am not against buyouts and all circumstances I'm just suggesting and it's not the magic bullet to solving State's fiscal -- the reason that pensions are underfunded also because states have made.
-- fiscal decisions and do -- prefer buyouts to lay offs.
Absolutely but that -- that if we just pursue this path for all of a sudden gonna get.
Government that's providing great cost effective service is not necessarily true.
-- -- -- -- -- Well I've said it I idea I think the proof is in the putting we already know that he -- if you could privatize certain things that John makes a point you know they've been five in cities in the state of California -- gone -- -- the last four over yes.
So you've got to do something you can't just.
Keep making this up so this is a solution it's a good solution for the work it's a good solution for this and it's a good solution for the taxpayer.
You say we take -- yeah we go live in Bermuda.
I think they're glad.