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Postal Service Faces $100B in Debts and Unfunded Benefits

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Postal Service Faces $100B in Debts and Unfunded Benefits
March 14, 2014 – 4:23 PM
By Michael W. Chapman

(CNSNews.com) – The U.S. Postal Service (USPS) currently owes $99.8 billion in benefit payments to its current and retired workers but does not have the money, and if Congress does not act to fix the problem, the Postal Service may have to “implement contingency plans to ensure that mail delivery continues,” according to a new report by the Government Accountability Office (GAO).

“At the end of fiscal year 2013,” said the GAO, “USPS had about $100 billion in unfunded liabilities: $85 billion in unfunded liabilities for benefits, including retiree-health, pension, and workers’ compensation liabilities, and $15 billion in outstanding debt to the U.S. Treasury—the statutory limit.”

“USPS continues to be in a serious financial crisis, with insufficient revenue to cover its expenses and financial obligations, a continuing decline in profitable First-Class Mail volume, increasing unfunded benefit liabilities, and borrowing limitations due to having reached its $15 billion statutory debt [borrowing] limit,” said Frank Todisco, a GAO chief actuary, in prepared testimony before the House Subcommittee on Federal Workforce, U.S. Postal Service and the Census on Mar. 13.   (See USPS Action Needed.pdf)

“Attention to USPS’s unfunded benefit liabilities is important, as they represent scheduled future benefit payments to current and retired employees for which USPS has not set aside sufficient money to pay,” said Todisco.


Those “unfunded benefit liabilities” refer to money owed for postal workers’ pensions, retirees’ health care and workers’ compensation. It also includes some outstanding debt.

According to the GAO report, the USPS at the end of 2013 had about $100 billion ($99.8 billion) in unfunded liabilities. These scheduled payments to current and retired workers included the following:

$48.3 billion, retiree health care

$17.2 billion, workers’ compensation

$19.8 billion, federal pension plan for workers hired before 1984

$500 million, federal pension plan for workers hired after 1984

$15 billion, outstanding debt

According to the GAO, “these unfunded liabilities have increased by 62 percent since fiscal year 2007.”

In 2007, the unfunded liabilities were $61.6 billion, and at the end of 2013 they had grown to $99.8 billion.

https://www.cnsnews.com/news/article/michael-w-chapman/postal-service-faces-100b-debts-and-unfunded-benefits#sthash.MDL9v7H5.dpuf

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Reader troubled by RBSA letter refering to citizens opposed to a 90-foot baseball diamond on the Schedler property as the “anti sports forces.”

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Reader troubled by RBSA letter refering to citizens opposed to a 90-foot baseball diamond on the Schedler property as the “anti sports forces.” 

MAY 9, 2014    LAST UPDATED: FRIDAY, MAY 9, 2014, 12:31 AM

Writer troubled by letter
Linda McNamara

To the Editor:

A letter from a member of the Ridgewood Baseball and Softball Association to its constituents has been circulated about town. Two things are bothersome about the letter: 1) A 501(c)3 tax-exemption status prohibits electioneering, and the letter appears to be just that; 2) the letter also refers to citizens opposed to a 90-foot baseball diamond on the Schedler property as the “anti sports forces.” This is blatantly untrue.

Most of us opposed to the field are pushing for a balanced approach to the development of the property that would include accommodations for passive and active recreation as well as preserving the house. The Habernickel property was treated in this manner and has proven to be a great success and endorsed by its neighbors. The Schedler acreage is a smaller parcel of land and borders Route 17. The homeowners have very legitimate concerns regarding the integrity and safety of their neighborhood, which include direct access from Route 17 and the loss of four acres of trees that serve as a sound and pollution buffer for the area. The neighbors have been left out of the process. Compromise is not a dirty word. It is how we as a people deal with conflicting desires. In Ridgewood, this could be the answer to most of our immediate concerns: the proposed Valley expansion, development of the Central Business District and Schedler

– See more at: https://www.northjersey.com/opinion/opinion-letters-to-the-editor/letter-reader-troubled-by-letter-1.1012814#sthash.U6xvZTmN.dpuf

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RIDGEWOOD NEWS : Controversial issue should have been covered

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RIDGEWOOD NEWS : Controversial issue should have been covered

MAY 9, 2014    LAST UPDATED: FRIDAY, MAY 9, 2014, 12:31 AM

Controversial issue should have been covered
Boyd A. Loving


To the Editor:

I am somewhat mystified as to why The Ridgewood News’ Friday, May 2 edition made no mention of the recent admission by current Ridgewood Baseball and Softball Association (RBSA) President James Albano that the RBSA’s 501(c)(3) Federal Income Tax Exemption status was revoked on March 15, 2011.

This information was made public, and confirmed by Mr. Albano, during the League of Women Voters – Ridgewood Chapter “Candidates’ Night,” which was held on Tuesday, April 29.

A reporter employed by The Ridgewood News was present at the aforementioned event throughout the debate/discussion of the tax exemption status issue. Certainly both you and your reporter understand the significance of such a revelation, particularly in light of Mr. Albano’s active candidacy for Ridgewood Village Council.

Despite having ample time to direct your reporter to undertake further investigation/research of the matter and prepare an article prior to your publication’s May 1 deadline, you apparently chose not to do so.

Whether The Ridgewood News’ “failure to publish” was simply an oversight on your part, or an deliberate attempt to avoid broad exposure of a controversial issue during an already heated election campaign, the absence of even a brief mention about this issue was shamefully disgraceful and a disservice to all of your readers.

Boyd A. Loving

– See more at: https://www.northjersey.com/opinion/opinion-letters-to-the-editor/letter-controversial-issue-should-have-been-covered-1.1012917#sthash.bo9bS7Gg.dpuf

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RBSA Financial Practices Questioned

RBSA Financial Practices Questioned

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The letter was sent to the Ridgewood News by email on Sunday afternoon, May 4. On Monday morning the paper called to confirm that I had sent it and wanted it published. I said yes.

Late Wednesday morning, the three candidates for council received an email message from Ed Virgin, editor of the paper, stating that the volume of letters this week had been so great that the usual noon (Wed.) deadline had had to be cut off a little early. However, he added, anything received before late Wednesday morning (May 7) would be published.

Well, mine wasn’t. Gee.

Too late now.

I called Ed but his phone message said he was out until Monday and not listening to voice mail. Thanks for your objectivity, local newspaper!

Here’s the letter:

RBSA Financial Practices Questioned

Ridgewood News readers deserve to know about an important issue raised at the League of Women Voters Candidates’ Debate on April 29 but omitted from last week’s article on that event (“Race for Two Seats Heats Up,” May 2).

According to public records, the Ridgewood Baseball and Softball Association failed to file federal tax returns for at least 3 consecutive years during Village Council candidate James Albano’s long and continuing tenure as RBSA president. As a result, the group’s tax-exempt status was revoked by the Internal Revenue Service on March 15, 2011.

This suggests that appropriate papers have not been filed for at least 7 or 8 years and that contributions have not been legally tax deductible for several years.

Questions emerge:

Why did this happen? Was it deliberate, or sloppy bookkeeping?

In either case, how might RBSA’s financial practices reflect on Mr. Albano’s ability to serve on the Village Council, which oversees a vastly larger budget?

How much money does the RBSA have and where does it go?

Since RBSA activities heavily use tax-supported fields owned by the Village and Board of Education, might an audit of RBSA’s financial records by the Village be warranted?

Were corporate and individual donors to RBSA informed in a timely way in 2011 and every year since that they could no longer deduct donations from their taxes without violating federal law?

Do any individuals profit from RBSA’s summer baseball clinics conducted on taxpayer-owned property? Might an expansion of the summer clinics be one reason RBSA has pushed so hard to flatten the Schedler property in exchange for a 90-foot baseball field that its neighbors and countless other residents adamantly do not want?

At the debate, Mr. Albano denied being “the sports candidate,” a term no one but him had used that night. Interestingly, a message sent to the RBSA email list last month under the subject line “Albano for Council!” by Gary Muzio, RBSA’s “2014 Commissioner” and a leader of the summer clinics, stated: “While he [Mr. Albano] is not just the ‘sports candidate,’ the issue of the badly needed 90′ field, along with an all purpose field (read: soccer & lax) at Schedler is certainly a timely issue here.”

The assumption that RBSA had tax-exempt status and was therefore prohibited from any political activity, including endorsing candidates for local elections, led to a simple search for confirmation on the excellent IRS website, which quickly revealed the March 2011 revocation.

Might RBSA therefore use its email list for political activity, after all? Consider another factor beyond IRS regulations. The Village and Board of Education, recognizing the RBSA as a nonprofit entity (is it so registered?), have granted it the privilege of being cosponsored by the Village Parks and Recreation Department and Community School. Is it appropriate for a Village/Board of Education-cosponsored athletic organization (given priority in the use of tax-supported fields) to endorse a candidate for public office?

Marcia Ringel
Ridgewood

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Today Melissa Guion Author of Baby Penguins Everywhere Comes to The Curious Reader in Glen Rock, NJ

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Today Melissa Guion Author of Baby Penguins Everywhere Comes to The Curious Reader 
in Glen Rock, NJ 

May 7, 2014 – The Curious Reader is pleased to announce that  Melissa Guion, author & illustrator of Baby Penguins Everywhere and Baby Penguins Love Their Mama will visit our store at 229 Rock Road in Glen Rock, NJ on Saturday, May 10 at 10:30. 

In addition to signing her books, Melissa will host a storytime, lead an art activity and answer questions. Her delightful stories about an energetic brood of baby penguins and their mother’s challenges will entertain children and adults alike. A wonderful Mother’s Day gift would be signed copy of these colorful books.Melissa is our inaugural author visit. Please join us.The Curious Reader is a unique children’s bookstore in the center of Glen Rock. Look for us under the bright orange awning. We feature the best in literature for infants through high school students. We are the only area bookstore to feature a LeveledReading Library organized with Fountas & Pinnell system used by many local schools to teach literacy.

The Curious Reader
229 Rock Road
Glen Rock, NJ 07452
Phone: 201-444-1918

 

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US: Two Views of Declining Labor Force Participation

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US: Two Views of Declining Labor Force Participation

Ridgewood NJ, Here is an interesting economics view of the US labor force participation decline from head economist at Citi.  

The interesting thing is that there are quite a few forces at work; older population, kids staying in school longer or going for higher degrees, women opting out, etc.  Most important is the last point, the BLS projects it will continue to decline for another 10 years.


US: Two Views of Declining Labor Force Participation


1●It’s Temporary. Drop in labor force participation (LFPR) since 2007 reveals cyclical effect of unemployment previously masked by dominant demographics and too brief recessions.
–Downturn in LFPR associated with surge in long-term unemployed
–Correlation at state level between rising unemployment and falling LFPR.
–Large increase in discouraged workers, non-participants who want a job.
–Job-finding rates fell proportionately for recent and long-term jobless.
●Delayed response (increase) to falling unemployment implies that LFPR will rise strongly for several years after the economy reaches full employment.

2-●No, it’s Permanent. Major part of LFPR drop reflects mix of demographic, structural and other policy effects that may be only partially reversed over only a very long period.
–Population shifting to less-attached cohorts, including older, still prime-age workers.
–LFPR among prime-age women falling since 2000, high marginal tax rates at low incomes.
–Rising education enrollment.
–Accelerating trend in disabilities suggests more permanent hysteresis effect.
–Recent declines in discouraged workers and ‘not in labor force who want a job’

BLS projects that LFPR will decline another 1.5 percentage points by 2022.

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N.J.’s $7M Super Bowl tax rebate to NFL stirs anger

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N.J.’s $7M Super Bowl tax rebate to NFL stirs anger

MAY 8, 2014, 3:58 PM    LAST UPDATED: THURSDAY, MAY 8, 2014, 11:01 PM
BY JOHN REITMEYER AND JOHN BRENNAN
STAFF WRITERS
THE RECORD

Lawmakers coming to grips with an $807 million budget shortfall faced another head-scratcher Thursday: New Jersey’s tax giveback to the NFL, one of several big-ticket public costs to hosting the Super Bowl in the Meadowlands.

In the run-up to the game, Governor Christie highlighted the impact the Super Bowl would have on New Jersey, calling it “a major win for the state, its tourism and economic development.” The NFL has also argued the economic benefits of the game far outweigh the costs for the host state.

One of those costs for the host state this year was a $7.5 million sales tax rebate paid to the league. It’s a standard NFL requirement for hosting the Super Bowl – game tickets and parking must be exempted from state sales tax.

“Wow,” said Senate Budget and Appropriations Committee Chairman Paul Sarlo, D-Wood-Ridge, when he heard the state treasurer’s explanation for the payback.

Sen. Anthony Bucco, R-Morris, called the reimbursement “ludicrous,” saying the treasurers of every state should band together and all refuse to abide by the NFL’s tax requirement.

putin-czar

“Have the Super Bowl in the Ukraine next year,” Bucco said.

– See more at: https://www.northjersey.com/news/n-j-s-7m-super-bowl-tax-rebate-to-nfl-stirs-anger-1.1012503#sthash.qxmuHPsV.dpuf

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Feds Step In, Say They’ll Fund NJ Offshore Wind Plot Up to $47 Million

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Feds Step In, Say They’ll Fund NJ Offshore Wind Plot Up to $47 Million

Fishermen’s Energy yesterday received a $47 million federal grant to move forward with its pilot project to build a small offshore wind farm about three miles from Atlantic City — even though the project already has been rejected by regulators in New Jersey.

The grant from the U.S. Department of Energy is a key element in making the project financially viable. Proponents say the pilot could demonstrate offshore wind as a cleaner way of generating electricity in the future — one that also could create new jobs — and pave the way for more such projects in New Jersey.

The view was not shared by the New Jersey Board of Public Utilities, which has repeatedly refused to back the $188 million project, saying it would be too costly to utility customers who would foot much of the bill. They also questioned if the developer would ever receive the grant from the federal government it was seeking.

The failure of BPU to approve the project, which sought to build a 25-megawatt offshore wind farm, has been harshly criticized by clean-energy advocates who say the denial reflects a retreat from the Christie administration’s own Energy Master Plan and its recommendation that the state develop 1,100 megawatts of offshore wind capacity by 2020.

That goal is nowhere close to happening, given that Fishermen’s Energy’s Atlantic City Wind Farm is the first project to come before the BPU. While the regulatory agency called the project too costly, the New Jersey Division of Rate Counsel, which represents the interests of ratepayers, signed off on the project, largely because of grants from the federal government that would reduce costs to utility customers. (Johnson/NJSpotlight)

https://www.njspotlight.com/stories/14/05/07/feds-step-in-say-they-ll-fund-nj-offshore-wind-pilot-to-47-million/

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Revised guidelines for N.J. affordable housing ie “Ghetto Building” causes confusion

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Revised guidelines for N.J. affordable housing ie “Ghetto Building” causes confusion

MAY 8, 2014, 11:14 PM    LAST UPDATED: THURSDAY, MAY 8, 2014, 11:32 PM
BY REBECCA D. O’BRIEN AND MICHAEL PHILLIS
STAFF WRITERS
THE RECORD

New guidelines designed to determine how much affordable housing will be needed in New Jersey’s 565 towns over the next 20 years are already being criticized by housing experts as insufficient and opaque less than two weeks after they were unveiled to the public.

Some have even said the proposed rules, which estimate that more than 50,000 homes need to be built, could violate the state constitution, because they rely on calculations that have been struck down by the state Supreme Court.

What’s next

The proposed regulations for affordable housing are subject to review by the Office of Administrative Law and will be published next month in the June 2, 2014, New Jersey Register. A public hearing on the proposed rules has been scheduled for July 2. The final rules are supposed to be adopted in October and take effect Nov. 14.

The rules approved by the Council on Affordable Housing on April 30 are New Jersey’s latest effort to meet the state’s constitutional mandate that towns allow for construction of affordable housing. In addition to the new construction, the guidelines also identify more than 62,000 homes currently occupied by low- and moderate-income families that need to be fixed up.

But the mandate has existed only in the abstract in recent years; Governor Christie tried to disband the council in 2011, calling it broken and ineffective. The Christie administration also had its eyes on millions in towns’ affordable housing funds that would have been turned over to the state because they had not been used.

Last summer, the state Supreme Court overturned Christie’s bid to disband the council and in September ordered the council to approve new affordable housing obligations that take into account unfulfilled obligations from decades past, houses in need of rehabilitation and future demand.

– See more at: https://www.northjersey.com/news/revised-guidelines-for-n-j-affordable-housing-causes-confusion-1.1012597#sthash.JkdIZZGa.dpuf

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Ridgewood artist and family members share exhibit

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Ridgewood artist and family members share exhibit

MAY 9, 2014    LAST UPDATED: FRIDAY, MAY 9, 2014, 12:31 AM
BY EILEEN LA FORGIA
STAFF WRITER

“Art in the Family” features four generations of the Toan family with a unique exhibit at the Cottage Place Gallery.

Marion Toan Jones and her husband Bob have been well-known Ridgewood residents for the past 30 years. Marion worked as a clinical social worker and Bob has a PhD in social policy and administration. He has been president of the Children’s Aid and Family Services in Ridgewood for 29 years. Both have spent two years each as president of the Unitarian Society in Ridgewood.

This eclectic show was Marion’s idea. It displays artwork from her mother and aunt as well as that done by Marion and her two cousins, Debbie Patton and Meryl Toan. On exhibit are mixed media, photography, acrylic paintings, oil and batik artworks. Younger family members in the exhibit include Marion’s children Kim Tyner and Nick and her two grandson’s Ben and Finn, 7 and 4 years old. Debbie Patton’s son Ben and Meryl Toan’s daughter Emmy Toan are also part of the show.

“It’s a miracle – they didn’t expect Marion to live more than a year,” said Bob Jones about his wife’s participation in the art show. She was diagnosed with brain cancer in January 2008. As a result of the surgery, memory and speech were affected, but not artistic expression. Since the surgery, Marion has won a number of best in shows. She also had a successful solo show at the Cottage Place Gallery in 2012.

“Art is an emotional expression because she often doesn’t have the words,” Bob noted.

– See more at: https://www.northjersey.com/arts-and-entertainment/art/art-in-the-family-showcases-local-artists-1.1012919

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Rebuilding Sandy Survivors May Violate Federal Flood Insurance Rules

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file photo Boyd Loving

Rebuilding Sandy Survivors May Violate Federal Flood Insurance Rules

As more residents of the Jersey Shore receive funding to repair or rebuild their Sandy-damaged homes, the pace of construction is picking up in advance of the summer vacation season. But federal officials and flood insurance experts are worried that inconsistencies between state and federal construction standards mean some homeowners might rebuild in violation of key flood insurance regulations. That could lead to some nasty surprises after future storms — or when selling properties. Some people may find they have to pay insurance surcharges or that they are ineligible for insurance at all.

Last December, FEMA sent a letter to the New Jersey Department of Environmental Protection, threatening harsh penalties if the inconsistencies aren’t fixed. But five months later, the state has yet to make the requested corrections.

State officials are downplaying the concerns, saying that local construction officials know the proper rules to follow. Experts familiar with the issue argue that’s not necessarily always the case. Though evidence of problems has yet to arise, they fear that issues are likely to crop up as the recovery continues.

The existence of state building rules that are out of compliance with the federal standards puts the onus on local officials to know just which regulations to follow. People like Dane Sprague, the construction official in Long Beach Township — where over 1,500 homes sustained damage during Sandy. Sprague and his colleagues conduct inspections and issue permits, and they’ve been working pretty much non-stop in the year-and-a-half since the storm. (Gurian/NJSpotlight)

https://www.njspotlight.com/stories/14/05/08/sandy-survivors-rebuilding-to-state-standards-may-violate-federal-flood-insurance-rules/   

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RBSA addressing tax status

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RBSA addressing tax status

MAY 9, 2014    LAST UPDATED: FRIDAY, MAY 9, 2014, 12:31 AM
BY DARIUS AMOS
STAFF WRITER

Officers within Ridgewood’s largest youth sports organization said corrective measures are already underway for the reinstatement of their federal tax-exempt status from the Internal Revenue Service.

The tax-exempt standing of the Ridgewood Baseball and Softball Association (RBSA) recently came into the spotlight following the revelation that the group did not file federal taxes for at least three consecutive years. As a result of that oversight, the RBSA was stripped of its tax-exempt status with the IRS more than three years ago.

Public records available on the IRS website, which is regularly updated, confirm that the federal government revoked RBSA’s tax-exempt classification on March 15, 2011. The IRS imposes an automatic revocation on organizations that fail to submit tax returns for three straight years.

Under federal law, a tax-exempt organization in the United States is required to file 990 series returns with the IRS each year. Some groups are excused from the 990 federal tax filings under the Internal Revenue Code, though most falling under that category are religious institutions, select political groups and those with low annual gross receipts, according to the IRS website.

– See more at: https://www.northjersey.com/community-news/clubs-and-service-organizations/group-correcting-tax-status-1.1012773#sthash.HJHg6O5G.dpuf

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Ridgewood Council candidates make final push

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Ridgewood Council candidates make final push

MAY 8, 2014    LAST UPDATED: THURSDAY, MAY 8, 2014, 2:43 PM

For several weeks this spring, Jim Albano, Susan Knudsen and Michael Sedon worked to meet and greet as many Ridgewood residents as possible during their pushes for political office. On Tuesday, each will learn whether they won over enough voters during their campaigns.

On May 13, the village’s registered voters will be asked to select two of the three candidates to fill vacancies on the five-member Ridgewood Council. Each seat on the governing body carries a four-year term.

Since declaring their intention to seek office, each candidate addressed their opinions on the various issues: The Valley Hospital expansion, downtown multifamily housing, property taxes, improved village services, and the future development of the Schedler property, among other areas (see previous issues of The Ridgewood News for those opinions).

The Ridgewood News asked each candidate to submit a final personal statement for publication, all of which follow here, based on alphabetical order. (Darius Amos)

https://www.northjersey.com/news/ridgewood-council-candidates-make-final-push-1.1012371

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Ridgewood Planning Board to open public comment on Valley Hospital plan

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Ridgewood Planning Board to open public comment on Valley Hospital plan

MAY 8, 2014    LAST UPDATED: THURSDAY, MAY 8, 2014, 4:13 PM
BY DARIUS AMOS
STAFF WRITER

The experts are done, and the floor now belongs to the residents.

Beginning May 20, the hearing for The Valley Hospital master plan amendment proposal will be open to public comments, the penultimate phase of a process that recently passed the 14-month milestone. Each resident who speaks at the next Planning Board meeting will be afforded three minutes to offer commentary on the application and describe any potential impact that might result from the project.

Though speakers may address many topics, Planning Board Attorney Gail Price offered residents guidance on how to present their statements.

“Make it about you and your family, your thoughts and issues that affect your life in connection to the hospital,” Price said at Tuesday’s board meeting. “Those things should be personal to you, not what’s happening to your neighbor or third parties.”

At the conclusion of this week’s Valley hearing, in which municipal planner Blais Brancheau answered remaining questions regarding his March 31 report, Price and Planning Board Chairman Charles Nalbantian reviewed the hearing procedure going forward. At the May 20 meeting, which will begin at 7:30 p.m. at Ridgewood High School, the board will establish a speaking order for residents, all of whom will be sworn in prior to making their statements.

A June 2 meeting at Benjamin Franklin Middle School has already been scheduled to accommodate additional speakers.

– See more at: https://www.northjersey.com/news/ridgewood-planning-board-to-open-public-comment-on-valley-hospital-plan-1.1012535#sthash.r4I08ttc.dpuf

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Reminder Water Restrictions Coming Soon

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Village Watering in the Rain yesterday May 8th

Maybe it was just an oversight 

But coming soon , Ridgewood Water – June 1 New Water RestrictionsRidgewood Water has simplified water restrictions! The new plan matches odd and even addresses with days of the week to determine which properties can be irrigated.

If your address is an odd number, you may irrigate on Tuesdays, Thursdays, and Saturdays only. If your address is an even number, you may irrigate on Wednesdays, Fridays, and Sundays only. A handheld hose may be used at any time including Mondays.

This plan will be in effect each year starting on June 1st and will continue through August 31st. If conditions warrant, irrigation will be prohibited on additional days of the week up to and including a total ban on irrigation.

Compliance with the initial restrictions will reduce the likelihood that more severe controls will be needed. Your cooperation is appreciated.