by Mike Shedlock, Global Economic Analysis:
Without a doubt Syracuse, New York is headed for bankruptcy. Not only is there an “official denial” but the mayor of Syracuse is seeking legal guidance on municipal bankruptcy.
Once again, public union wages and benefits, especially police and firefighters’ pensions are smack in the midst of it.
Please consider this news headline which I openly mock: Expert says bankruptcy for Syracuse is unlikely, but mayor should explore option
While the financial situation in the city of Syracuse hasn’t been described as desperate yet, Mayor Stephanie Miner has asked for some legal expertise on municipal bankruptcy.
The signs of the city’s financial problems have been evident for several years as city employees accept wage freezes and fire and police departments see staff reductions.
The city will use an early payment from Albany to help keep the budget from dipping into dwindling reserves. Skyrocketing pension and healthcare costs continue to be a problem for the city budget.