A lot of state and local governments started their fiscal years this month and, for many U.S. states, times are tough: in fact, our proud states are suffering shortfalls totaling nearly $300 billion in 2010 and 2011.
States will now have to deal with hundreds of billions more unfunded pension obligations to their workers. They’re required to balance their budgets and they’ll be forced to slash their spending and payrolls for the coming fiscal year. (HT: Yardeni Research)
For some municipalities, though, the spending cuts should be pretty easy to spot.
Take the California city of Bell (population of 38,000), which is one of the poorest municipalities in Los Angeles County. According to Bloomberg, Bell is paying its city manager an annual salary of almost $800,000 - with annual 12% raises - and its police chief is raking in $457,000 per year.
To put that in perspective: that’s more than Los Angeles Police Chief Charlie Beck makes in a city of 3.8 million people. Bell council members earn almost $100,000 for part-time work. (HT: Carpe Diem)