Note: Len Raphael is running for Oakland City Auditor.
Risk of Oakland union leadership and Oakland politicians continuing to bath in denial about our 2.4 billion of unfunded retirement obligations just took a body blow.
Up till now there have not been any Federal rulings as to whether the California constitutional protection of public employee pensions can be overridden by a Chapter 9 municipal bankruptcy filing.
After an Oct 6 2014 Federal Bankruptcy Court ruling, It is now clear that at least one Federal bankruptcy judge believes that the California protection is trumped by Federal Chapter 9 so that pensions can be reduced.
It has always been clear that medical retirement benefits could be cut in Chapter 9. In fact they were wiped out in Stockton by the Federal court.
You’d think this Federal Bankruptcy Court ruling should make Oakland municipal union leadership reconsider their strategy of kicking the retirement can down the broken Oakland roads. But it won’t.
Union leadership doesn’t think the politicians would do anything anyway and is understandably concerned Oakland voters could go postal if they found out what politicians have promised city workers. No telling what could happen with angry voters.
Len Raphael for Oakland City Auditor 2014
www.LensForChange.com
http://www.lensforchange.com/291836/videos
