Rising obligations to retirees will put its pension plan $600 million in the hole in 2004, so it will have to take a bite from earnings to catch up.
Rising obligations: The L.A. Unified School District could pay even more in settlements to students who were believed to have been abused by two teachers at Miramonte Elementary.
Given adverse demographics in the advanced world, slowing productivity, and rising pension obligations, it is very hard to know what the endgame of soaring debt would be.
But even the strongest education supporters said they believed any budget the school board tries to present will be defeated in referendum, and that would mean reverting to the current year's $28 million budget and no increase in spending, which administrators said would actually mean a decrease because of rising budget obligations.
Have the cities, counties and school districts that suffer from falling revenue and rising retirement obligations suddenly become healthy?
Without addressing the state's rising pension obligations, there is no real budget solution, despite what the governor hopes.
L.A. Unified faces budget challenges from declining enrollment, high fixed costs, rising pension obligations and costly retiree health benefits.
The city's rising pension obligations have been a driving factor behind the need to cut expenses or face crushing budget deficits.
The proposal comes as recession-ravaged cities, counties and states nationwide are grappling with the dilemma of sharply rising pension obligations and healthcare costs for public sector employees.
The Postal Service is somehow supposed to cope with rising pension obligations, increased private competition and a reduced customer base — the Internet has largely replaced the written letter and printed invoice — but is not allowed to bring in new revenue or cut services.
If the rules of recognition are, indeed, of such a coordination kind, it is relatively easy to explain how they may give rise to obligations.
