LA Must Face True Pension Liabilities
Los Angeles, we have a problem. And, as with any deficit, fixing the problem — reporting the LA’s full pension and healthcare liability — begins by acknowledging it. We must admit it. We must quantify it. We must deal with it.
U.S. Governmental Accounting Standards Board, which sets the standards for U.S. state and local governments' financial statements, changed the rules. Governments must now report how much they owe in pension promises on their financial statements as a liability. This would be calculated starting with the total dollar amount that the actuaries have determined would be needed to fund the pension promises minus the total dollars that have been put aside.
You might say, "Of course, this is a no-brainer." But governments are slow to change. We all think governments will be here forever. They don't go out of business. They don't go bankrupt. They don't need the same rules. For these reasons, governments have had special rules when it comes to financial reporting.
Up until now, a government reported a liability on its financial statement as the amount that the actuary says should be paid into the pension for the current year to cover the current year's costs minus the cash that was set aside for the current year. This is based on the government's funding approach and not the real liability. The current method does not take into account certain changes in expectations, changes in benefits and shortfalls in expected returns on investments.
If we look at LA's audited financial statements from June 30, 2016, we see that the net pension promises after subtracting the cash that has been set aside (unfunded actuarial accrued liability) is over $20 billion. This is only reported as a footnote to the financial statements. It is not reported on the balance sheet as a liability.
If we look at what is actually reported on the balance sheet, we see a liability of $1 billion. We are only reporting $2 billion of our actual $18 billion pension shortfall on our balance sheet. We are not reporting $18 billion plus of our pension liabilities. The new accounting rules would correct this and cause us to report the real and larger liability on our balance sheet.
We, the people of Los Angeles, are concerned about the financial health of the city and our leaders' long-term plans for addressing and correcting it. We are concerned that our leaders will look to regulations exempting the city from the new standard. Although this might make the leaders look better for today, it hurts us, the citizens. Ignoring the costs does not exempt us from paying the bill for the promises we have already made.
We are especially concerned because the last time the Governmental Accounting Standards Board came out with a pronouncement that would cause a large liability to be shown on the financial statements, for Other Post Employment Benefits, LA's leaders tried to do just that. Approximately five years ago, the city was required to start reporting the costs of health insurance promises that we had already made to our retirees on the financial statements. Our leaders looked to create city regulations exempting the city from these standards. Fortunately, they were unsuccessful.
We can't let our leaders repeat that maneuver by trying to avoid the new requirement that the amount the city owes in pension promises be reported as a liability on their financial statements. Ignoring the problem doesn't make it go away.
We cannot pretend this problem does not exist. We cannot have leaders making short-term political decisions with long-term consequences for the citizens. We cannot pass these problems on to our children and grandchildren. We must fix our future. We must start today with honest accounting of our liabilities.
We cannot have Los Angeles city government tax its people with no limits and increase fees and bureaucracy. This will only chase the people and businesses away from Los Angeles, which will reduce the city’s revenues even further.
YJ Draiman
Enough of hijacked democracy - it is time to serve the people - YJ Draiman
Democracy has been hijacked by the special interest groups/lobbies’. Our elected officials are beholden to the 'money vote' people only.... Not their Constituents who are YOU.
Special interest money from unions, businesses and various racial groups buy the direction of Congressmen and other elected officials, which corrupts the lawful intent of fairness for all. The common citizens do not have a 'real' voice in the selection of their own representatives because you don't have the money to waste. BUT YOU DO HAVE A VOTE. Our elections, local, state or national, are all a 'show election'; not unlike those in Socialist, Nationalist, and Communist nations. Those winning an election are simply beholden puppets of their special interest, and lobbyists’ Money Masters. When ''elected officials'' are knocked out of office they become Lobbyists and never come back home to their constituents whom they pretended to represent. And around and around it goes with government. Until now!
The "Vote Organization" developed and sponsored by YJ Draiman intends to gather the vast majority of the people who have been used and ignored by our current 'elected officials'.
The people who feel that their VOTE does not count, nor matter. Those who have become apathetic, fostered by the 'one sided' actions of the 'majority of politicians' who currently occupy their elected offices.
All elected officials, by law, have a duty under oath to represent ALL of the citizens; not the special interests of a minimal few whose demographics 'are not the image of your majority will'.
You are all too familiar with these officials who disregard their sworn allegiance ''oath of office''...regarding laws for the betterment 'of ALL the people (YOU) and by ALL the people (YOU).
This has gone on for far too long. That is why 40% of those citizens registered to Vote "Don't Vote in ANY election"! And those who are not registered to vote 'do vote' leaving you out by a 2 to 1 ratio or better.
Since you did not vote and exercise your constitutional right. You, the citizen, the people of the USA, in every county, every city and every State outnumber the Special interest Groups and their minions of "attitudes of Minority Rules". These people do not accept the coercing 'special interest' monetary-vote. In gathering the vast numbers of apathetic registered citizens to vote we, a cohesive force by sheer numbers alone, are The Majority.
Join us in the "Vote Organization" and take back your neighborhoods, our cities, our states and our country...
We can retake our government and place candidates whose allegiance is to the people as a whole. We can place candidates who care about the people, our neighborhoods our cities, our states and our country.
"It was a splendid population - for all the slow, sleepy, sluggish-brained sloths stayed at home - you never find those sorts of people among pioneers - you cannot build pioneers out of that sort of material. It was that population that gave to California a name for setting up astounding enterprises and rushing them through with a magnificent dash and daring and a recklessness of cost or consequences, which she bears unto this day - and when she projects a new surprise the grave world smiles as usual and says, "Well, that is California all over."
YJ Draiman
Government by the people, for the people
IIt is voter apathy that prevents people from voting – YJ Draiman
It is known that many people distrust’s politicians and the “system”, and many people believe that their vote is worthless in the end. This leads to high levels of “voter apathy”, especially in municipal and state elections.
We need to educate the people that their votes do count, that each vote helps them to exercise their constitutional right in a Democratic country.
I know many voters claim that the elections are controlled by special interests groups and the money people.
I feel very strongly that if the masses of people would rise up and vote, we could overcome the special interests groups and the money people. After all the peoples numbers are much greater than the special interests groups and the money people.
It is a government by the people for the people.
I plead with all voters please exercise your right and vote.
Thank you
YJ Draiman
Be sure to vote your conscience and not be swayed by money and empty promises.
One free man defending his home is more powerful than ten hired soldiers
“YJ Draiman for Mayor of Los Angeles 2017"
"I am an American! I am an American! I am not a republican, democrat, right wing, left wing, conservative, liberal, progressive, socialist, neoconservative, atheist, American Indian, Christian, Jewish, Muslim, redneck, hillbilly, white, black, tan, etc. what have you. I am an American! If you agree with me I think that’s great. If you do not agree with me I don’t care. I am your neighbor. I am the one who stands with you against harm, the one who helps you when you are in need, who laughs when you fall, the one who helps you up. Your suffering is my suffering; your joy is mine too. I am your friend. I am an American! "
A unified nation is a strong nation."
L.A. Neighborhood Councilman YJ Draiman is running for mayor in next spring elections.
In what is billed as a major statement on the economic reform Monday, Los Angeles City Neighborhood Councilman and mayoral candidate YJ Draiman said;
Los Angeles faces an estimated billion dollar plus deficit per year over the next five years, employee wages and benefits comprise the substantial share of the city budget. Estimated increased revenues only cover approximately a third of the increased costs.
The city must make it easy for businesses to thrive. This will create employment and increase revenues to the government and it will create the multiplier effect.
Multiplier effect definition:
An effect in economics in which an increase in spending produces an increase in national income and consumption greater than the initial amount spent. For example, if a corporation builds a factory, it will employ construction workers and their suppliers as well as those who work in the factory. Indirectly, the new factory will stimulate employment in laundries, restaurants, and service industries and the housing industry which employs builders, plumbers, carpenters, electricians, etc.
Take taxation: Taxes simply transfer resources from consumers to government displacing private spending and investment. Families whose taxes have increased will have less money to spend on themselves. They are poorer and will consume less. They also save less money, which in turn reduces the resources available for lending.
When a country and its society import more than they export for over a quarter of a century, it is bound to erode the economy to its primate state.
