It Cannot Happen Here

To the Editor:

Famous last words! In once opulent California, three cities so far have declared Chapter 9 bankruptcy: San Bernardino, Stockton, and Mammoth Lakes. San Bernardino and Stockton are cities of 200,000 and 300,000, respectively. Chapter 9 is a bankruptcy by a town or city and was approved in a revised form by the United States Supreme Court in 1937.

Ask yourself why did this happen. At first you suspect the housing debacle and general unemployment and you would be right. But behind the scenes is a gorilla lurking. For years the enormous cost to the cities for not only public service salaries, but also the huge financial burden of the costly pensions to which they have obliged themselves. So it can’t happen in Newtown? I have news for you. In a way it has.

The generous pension benefits accruing to the teachers are not paid by the town, but by the state, again in violation of the 14th amendment since they are employees not of the state, but of the towns and by singling out a group for benefits not available to the rest of the state’s employees. A flagrant violation met with muted response by the towns because they could not possibly pay for these benefits.

Are we on the way to being broke? The answer is yes. If our town had to shoulder the cost of teachers’ pensions, we then must follow in the path of San Bernardino, formerly an affluent city.

So how does the state manage the pension costs? The answer is they don’t. They are badly underfunded for the pensions. What does it take for us to realize we are being had and have been for a long time by a combination of the teachers, unions, and our fully cooperating loyal (to the unions) politicians?

Let us take legal action and challenge these fiscal atrocities in federal court. Only then will we be able to put our town onto a responsible financial path. One without repeated referenda and constant haggling over necessary infrastructure. It is a lot better (and cheaper) than bankruptcy.

Oscar Berendsohn

34 Appleblossom Lane, Newtown                                                                  July 11, 2012