In many real estate contracts, there is a provision for seller to disclose to buyer any off-site conditions seller may be aware of that may affect the value of the property, including pending assessments or contemplated assessments.
Shouldn't the pension deferral scheme, as well as the multi-billion dollar pension shortfall, be considered an "off-site condition" and disclosed in real estate transactions? Funding those pensions is an assessment on every home, whether or not it's disclosed as such. Those pension funds are underfunded by billions, with some estimates indicating the shortfall could be as high as more than half of what is actually needed to pay those pensions. The bulk of those pension funds are supplied by homeowners in the form of property taxes.
It is not only muncipalities who are getting to defer their pension contributions, but also counties and school districts. For the next 15 years, we, the taxpayers, will be making up these deferrals, in addition to making the regular payments. The future, when it comes to pension funding, doesn't look bright as the underfunding is so incredibly huge.
According to the Wall Street article linked below, since taking office in January 2006, Gov. Corzine has been warning that the pension fund is in worse shape than people may realize. “It’s impossible for us to stay on the course that we are on today, and deliver what people are asking for,” he said in an interview. “The money will not be there.” Gov. Corzine made these remarks before the pension funds lost billions more in the Wall Street meltdown.
I was once a proud homeowner, looking forward to the day I make my last mortgage payment. Today, I worry less about my mortgage payment and get a sick feeling when I contemplate my property tax payments. I had no idea when I bought my home that just by that single action, it puts me on the hook to fund the ticking bomb that the pension funds have become.
Here are a couple of excellent articles which address the pension mess, including the gimmicks and some flat-out manipulations.
http://www.nytimes.com/2007/04/04/nyregion/04pension.html?pagewanted=1&_r=1
http://www.bloomberg.com/apps/news?pid=20601109&refer=home&sid=alwTE0Z5.1EA
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1 comment:
That's the main reason I'm hauling ass out of this State ... I can no longer bear the high cost of living here. It's just not worth it anymore. I pity the rest of you.
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