Author Steve Eide

Closing Time

As announced two weeks ago, Publicsectorinc.org will cease publication today. For now, the archives—1,600+ blog posts, plus past interviewsonline debates, and the pension calculator—will remain at this location.

The Manhattan Institute remains committed to state and local fiscal reform. To continue to follow my work and that of Steve Malanga, Dan DiSalvo, and all our other colleagues, please visit manhattan-institute.org (@ManhattanInst) and city-journal.org (@CityJournal). Any PSI-related inquiries may be directed to seide[at]manhattan-institute.org.

Regards,

Stephen Eide

Moving On

The Manhattan Institute has decided to wind down Publicsectorinc.org, as part of a broad, institution-wide effort to consolidate our various platforms. The last date of publication will be two weeks from now, on December 15th.
PSI went live in late 2010, when the pension and public employee union issues …

Four unanswered questions about the Detroit bankruptcy

Capably fulfilling journalism’s obligation to be “the first draft of history,” The Detroit Free Press yesterday published an 8,000-word account of how the city’s bankruptcy was resolved. This “backstory” bookends “How Detroit went Broke“ (6,000 words; September 2013),” in which Free Press reporters explained the …

Municipal bankruptcy is about cutting retiree healthcare

Rhodes: OPEB is unsecured. Unlike retiree pensions, it had “no arguable constitutional protection.”
— ChristineFerretti_DN (@cferretti_dn) November 7, 2014

The real crisis in journalism now is reporters being tasked by editors to identify “precedents” in Detroit, Stockton, and other bankrupt cities. Because each case appears unique when …

Breaking: pensions are unnecessary to attract good teachers

On a dollar for dollar basis, there’s much more risk involved in compensating a worker via a long term pension promise instead of salary or some other benefit expensed in the present. You know for certain how much money you have to spend now. You …

How pension debt drives down borrowing costs

The Wall Street Journal reported this morning that favorable conditions in the muni market have allowed World Trade Center developer Larry Silverstein to issue tax exempt bonds to finance his thinly-leased new building. At $1.6 billion, the deal will set a record for unrated debt. Like …

Haste, not bias is what’s behind Detroit’s grand bargain

Detroit’s bankruptcy plan is finally underway and to no one’s surprise, much of the debate and controversy have concerned the inaptly named “grand bargain.”
As critics have pointed out, it’s not really a bargain or deal at all, but just a plan, for several foundations and …

Has Cuomo split the labor movement?

New York Gov. Andrew Cuomo, a Democrat, is coasting to reelection with only partial support from organized labor. While many private unions remain in his corner, the state’s major government unions are either declining to support Cuomo’s bid for a second term or have endorsed …

Shouldn’t New Jersey be thinking about taking over Atlantic City?

One of the most under-appreciated causes for municipal fiscal distress is state officials’ deep reluctance to get involved. As a legal matter, nothing’s stopping them, but governors and legislatures see little in it for themselves in taking over a distressed city. They put off intervening …

Does democracy cause pension mismanagement?

Red states’ pension management records can be just as irresponsible as blue states’, to be sure. But a new paper suggests that the real threat may come from purple America. The University of Michigan’s Sutirtha Bagchi lays out a carefully quantified case that fiscal irresponsibility stems …