many other american cities have so-called underfunded pensions.ome are leaning on taxpayers to make up the difference. i'll show you how charleston, west virginia, is raising revenues and cutting costs so it can pay its pensions. >> reporter: the city is about to impose .005 cents sales tax and is charging everyone a $2 a week fee. >> we've got that story and much more as real money continues. keep it right here. antonio mora brings you smart conversation that challenges the status quo with unexpected opinions and a fresh outlook. including yours. >> bankruptcy hearings resumed in detroit and has folks i with underfunded pensions worried. that's forcing some local governments to turn to taxpayers who were not supposed to be on the hook for pensions to shell out more money. reporting on one west virginia city taking extraordinary steps to stay out of bankruptcy and to keep those pensioners paid. >> reporter: charleston, west virginia, first responders dealing today with a barricaded gunman. after 20 years on the job they have access to healthcare a

many other american cities have so-called underfunded pensions. some are leaning on taxpayers to make up the difference. i'll show you how charleston, west virginia, is raising revenues and cutting costs so it can pay its pensions. >> reporter: the city is about to impose .005 cents sales tax and is charging everyone a $2 a week fee. >> we've got that story and much more as real money continues. keep it right here. what happens when social media uncovers unheard, fascinating news stories? it drives discussion across america. share your story on tv and online. my name is jonathan betz. i'm from dallas, texas, and i'm an anchor for al jazeera america. >>my name is ranjani chakraborty, i'm from houston, texas. >>i'm kim bondy. >>nicole deford. >>and i'm from new orleans. >>san francisco, california. when i was a little kid, i just really loved the news. >>news was always important in my family. >>i knew as a kid that was exactly what i wanted to do. >>i learned to read by reading the newspaper with my great-grandfather every morning. >>and i love bei

in all, the 100 largest cities in america were underfunded by $9 billion. and standar standard an standard & poor's said. >> pensions were close to 100% funded and there are genius benefits given during the budgetary stress of the great recessions so systems contributed less than they needed to. >> reporter: now taken together the 50 states have just $0.48 for every pension dollar they promised. that money has to be repaid. unlike 401k plans pensions guarantee a minimum monthly payment for life even if the assets and the plan sync to nothing, and in detroit even bankruptcy does not even guarantee paying the pensioners. that's why they're taking care to cut costs. >> reporter: the city is about to impose a $.0 pay tax and charge everyone who works in charleston, a new $2 a week fee. unless they reduce benefits it will be taxpayers who have to foot the bill of underfunded pensions. >> in 2013 every single state has one bill that addresses some sort of pension reform including puerto rico, which could mean more costs for employees and employers or more costs f

lori: the windy city has one of the most poorly funded pension systems in the country, 50% underfunded. no solutions so far. could be the next major city to declare bankruptcy? joining us is steve malanga, senior fellow and author of the indebted states of america, what a title of a book. what is the story with chicago? truly as bad as detroit or heading in that direction? >> economically not as bad a viable global city but their budget is a mess. $3 billion in taxes they collect, this year is the need to a $415 million for pensions and that is going to $1 billion in a year. this release the projection, that would be the third tax collection going in to pensions. this is something the state is mandating and they don't know how they can pay that. lori: you mentioned chicago economically in better shape. look at the baseball game where all those people to do a rod, more about that this afternoon but the underlying economy of chicago seems to have some growth potential. >> the economy there is okay and. nobody is really flying in this economy but here is the point, has not been economical

. >>> a disturbing warning about underfunded retiree healthcare obligations and the staggering cost to state and local budget. in a report, two federal reserve economiests say they have $1 trillion in underfunded retiree healthcare liabilities and that the only about half the amount in the municipal retiree funds. >>> it's no wonder that fewer than 10% of americans actually have long-term care insurance. many who should have coverage often wait until they are sick or in infirmed to get it when they can no longer qualify for it. what other options are out there to help defray healthcare costs in the later years? bertha coombs has the final installment in our series how to navigate long-term care with a look how to secure coverage when securing insurance is not an option. >> that is your b 12. >> reporter: 82-year-old nancy meadows can't care for herself but she still has good days. >> she just seems to really enjoy her life. >> reporter: by the time her son chuck tried to help her get long-term care insurance, she had already shown signs of dementia. >> they won't just write the insuran

it has achieved at lowest credit rating of all 50 states as a result there $100 billion underfundedy that they owe the state pension and the governor phiz asking the legislature for solution ov two years and got tired of waiting. he suspended the paychecks of the legislators and finally he has their attention. their answer? saying that the governor cannot do that i hope he wins in court is seems ideal way to get fiscal sanity is to hurt the law makers in their pockets. melissa: he needs a grilled cheese donec. you can catch his show saturday and sunday on fox business. up next say we will about congress, we will tell you why another country's budget problems. stick around for you can never have too much money. ♪ melissa: is time for a little friday fun with "spare change." rich joined by stiller do so. such fun stuff. look at this. lawmakers disagreed on whether not to finish the construction of a fourth the clear power plan but apparently very diplomatic. allied you think the we before we see this? >> well, 1858. there probably -- the only got 1987. so enthusiastic. melissa: like t

in 2011 i took a stand against a partisan plan to strip $5.4 billion from our already very underfunded public school system. i do not know if you are aware of this, but after that budget cuts went into place, texas became 49 out of 51 in what it is investing in the future of the school system in this country. i wanted to filibuster because it helps put us into a special session where teachers and parents finally had an opportunity to come to the capital and be heard. it was very important to me their voices be part of the conversation, and here is why, because i have seen firsthand that education is absolutely a pathway from poverty. 30 years ago i could not have imagined standing in front of you, standing in washington before a group of people like you. because back then my life looked so very different. it looked a lot like my mom's life. my mom has a sixth grade education. after my parents divorced, she had no husband, no financial security and for children to raise. every meal my mother put on our table was a struggle for her. by the time i was 19 i also was already married and div

. >> there's a tendency to overpromise, underfund them, and when a problem comes up, the actuary says put in so much, they're very ready to just defer that cost onto the next generation. >> reporter: some pensions have been improving, but a study found eight states have less than 60% of funds. illinois the worst at 45%. $138 billion short. >> every year lost is a much bigger challenge as one rolls forward. so they have to make either significant tax changes or they need to make significant benefit changes. >> reporter: politicians have nothing but unpopular choices, cut benefits, raise taxes, cut other programs to get the money. in chicago, that dilemma falls to democratic operative mayor rahm emanuel from whom unions are more likely to accept bad news. >> they're looking at a democratic office holder and saying i know you wouldn't be doing this to me if it wasn't absolutely necessary. >> reporter: not that that makes it any easier, and longer life spans means the problem will only get bigger. >> numbers get exponentially large and it exceeds the ability to pay. >> reporter: whatever

underfunded. of the ariano felix. felix are a large family that says. in the second half of the 1980's. it's a family lives nine brothers and sisters it's a very basic family women and men. siblings form a criminal organization with benjamin is the mastermind. who is responsible for the executions. in a deanery honor the taken up money laundering she was the accountant and francisco havea arianna the youngest brother begins to accompany ramon in the killings. they were living well nobody bothered them the men who would walk around and let it go that would listen. in the eighty's you would see them at the discos with the fed and in different parts of town recruiting young people asked us what is the. very good thing and so the narcan jr script became famous really our son was part of a narco junior sikh yes i see because they were young men that grew up together since go to. their own families well known here in tijuana. but we parents never realized anything. everyone talked about drum on set and were look the man who had just got here took care of his

in the rate they are getting on long-term bonds and reducing stocks because it helps narrow the underfunded status of those funds. take a look at the funds you own and make sure you're on dividend reinvestment because we have had the prices come down. if you are long-term investor the ability to compound these rates on the funds, equivalent of a treasury yield, talking about funds that have much higher rates depending on the specifics for the fund. it is a good time to keep your allegation in fixed income if you are a pension investor you're looking at being able to reduce the underfunded status by locking up longer-term bonds and pension funds. dennis: would you tell investors bond prices this year to date are down 3.4%. somewhere in the bond market a pretty big move. should the people use cheaper prices to put more money and go into bonds? that would be bad because it means they continue to fall after i buy into those funds. >> according to various resources $3.8 trillion are in bond funds. we look at the 100 some odd alien, less than 3% of the assets in the fund. it is a large amount of

already $304 billion underfunded liz: you're right.he pension benefit guaranty corporation, this is a story. market all down. >> this is the story. liz: recalls charlie. you will get you n hopefully tomorrow and get talk specifically. >> any other numbers. the other number is china. people keep talking about the china number. the indices last month, the did not like the numbers. they said there were unreliable. i think if you parse the numbers further you will find that these are green shoots. liz: also, the chinese tend to bring out the highlighted in green and start changing the numbers because they can't. that's another excellent point. we need to get to wail. what a jump. the numbers we see with west texas intermediate, more than $2 higher. >> you have a market that is almost defying conventional wisdom. again, going through every one of the resistance levels. keep in mind, pretty much a perfect storm here. some positive news from a china forecast. you have a very strong stock market. again, there is no reason for someone to stand

they brag about low unemployment, while at the tame same time dramatically underfunding texas education. they travel to states as far away as california and new york, trying to lure business to texas, while at the same time ignoring the needs of higher education system to make sure opportunities are available to all of our young texans. soon as we know the consequence of that will be we will probably have to travel to other states. there not being true to what people in texas are actually saying. it would be as a pretending to listen to what my grandfather had to say in writing down what ever i felt. you all know the saying, and some of you know the song, this this is notrst rodeo. my first filibuster. in 2011, i took a stand against a partisan plan to strip $5.4 billion from our already very underfunded public school system. i do not know if you are aware of this, but after that budget cuts went into place, texas became 49th out of 51 in what it is investing in the future of the school system in this country. i wanted to filibuster because it helps put us into a special session where t

. >> there's a tendency to overpromise, underfund them, and when a problem comes up, the actuary saysn so much, they're very ready to just defer that cost onto the next generation. >> reporter: some pensions have been improving, but a study found eight states have less than 60% of funds. illinois the worst at 45%. $138 billion short. >> every year lost is a much bigger challenge as one rolls forward. so they have to make either significant tax changes or they need to make significant benefit changes. >> reporter: politicians have nothing but unpopular choices, cut benefits, raise taxes, cut other programs to get the money. in chicago, that dilemma falls to democratic operative mayor rahm emanuel from whom unions are more likely to accept bad news. >> they're looking at a democratic office holder and saying i know you wouldn't be doing this to me if it wasn't absolutely necessary. >> reporter: not that that makes it any easier, and longer life spans means the problem will only get bigger. >> numbers get exponentially large and it exceeds the ability to pay. >> reporter: whatever happen

scales of justice work equally for all in the criminal justice system is not simply a pipeline from underfundedools to overcrowded jails. it requires vigilance. and we'll suffer the occasional setback. but we will win these fights. this country has changed too much. people of goodwill regardless of party are too plentiful for those with ill-will to change history's cents. -- currents. in some ways, though, the securing of civil rights, voting rights, the eradication of legalized discrimination, the very significance of these victory may have obscured a second goal of the march. for the men and women who gathered 50 years ago were not there in search of some abstract idea. they were there seeking jobs as well as justice. not just the absence of oppression but the presence of economic opportunity. for what does a profit a man, dr. king would ask, to sit at an integrated lunch counter if he can't afford the meal. this idea that one's liberty is linked to one's livelihood, that the pursuit of happiness requires the dignity of work, the skills to find work, decent pay, some measure of material secur

of nuances from the health care ordinance will tax an overloaded and overutilized and sometimes underfunded and understaffed department. i'm concerned ed wait times will increase, as they provide access to preventive services sufns immunizations and health screening, i'm concerned without these sss, clientele may not seek care until they have a crisis in their life. it is unclear to me how mandating an uninsured person to purchase health care [inaudible] those less fortunate are not limit today the marginalized and people who have become a casualty, these people will not be able to afford the co-payment and is deductibles from the new insurance exchange. the loss of healthy san francisco would be a great disservice to the participants utilizing it, as the name imply, healthy san francisco promotes good health, all san franciscans have a right to affordable health care, let us maintain a healthy san francisco by not eliminating this program and by keeping the employee spending requirement by protecting the health care security ordinance. thank you. >> thank you very much, next speaker. >> go

it is because of the legacy of underfunding. people think of state and local pensions like social security. current workers pay into it and that was to benefit current retirees. in practice that does happen but that is not the way disposed work. it is not -- that is not the way it is supposed to work. it is compensation for labor, like a wage. the government should be paying that bill when they incur that bill, setting aside funds for pensions. they didn't always do that, and they were aided by a counting standards that appropriately allow them to smith gains and losses just like you would an individual investor. individual year like 2000 and shouldn't matter so much. shouldn't matter so much. accounting standards are changing to recognize those market events sooner, because you want to err on the side of caution. another issue is how you think about liabilities. the reason it is difficult to is becauseiabilities they occur in the future, and there's disagreement about how you should treat those -- as if they are happening today

bully pulpit, challenging the states to get rid of their inequitable funding systems that actually underfund and defund many of the school districts where students are color are disproportionately concentrated. i think there are a number of things that the president can do by focusing on his administrative power and his bully pulpit. but i feel that the president has viewed the african american community as something not to be addressed directly. he has been comfortable addressing lgbt issues, women issues, immigration issues. but he is not comfortable addressing the left-behinds, things that need to be drafted for earch americans and civil rights. >> time for a quick break. when we return a look at the next generation of civil rights activists. stay with us. ç] >> founder and president of, founder and president of the national urban league and former mayor of new orleans. maya was talking about the president's lack of comfort dealing with the african american community. do you agree that he seems uncomfortable? >> i think it's difficult for him to speak openly about racial disparities. >> w

for the you don't need the support anymore. >> you need the underfunded pension and then probably will when you retire. that is why the uaw is desperate. and they need new blood to support their pension because if they don't then their pension will go more underfunded they and they are right now. tracy: what are the odds it -- that this will go through? >> it is up to the workers individuals. they have not voted yet i don't think this will change because they can see what is happening detroit has just gone bankrupt and relied on gm and chrysler and ford they do not want to go the way of detroit to one of the pensions will be smaller you know, you'll end up with less at the end of the day. >> with the individual company you can change it if you change jobs in ticket with you that is the advantage. if you want to move to a better job you can without investing in your pension. tracy: give them props for trying. i don't know what they're thinking. [laughter] great to be with you. ashley: they go to the south because the state's give tax advantages nissan moved to just south of nashville fo

. >> reporter: chronic underfunding have left school districts strapped for cash. they funnel everything think can for classroom instruction with little left other for maintenance. >> i think a maintenance program for a ventilation system might be visiting a unit three to to four time as year. they usually have the resources to visit it when it's broken. >> reporter: it's not a situation he sees turning around anytime soon. >> without a significant investment from the state, the systems are going to become more dilapidated over time. >> reporter: parents are holding their breath. >> something needs to be done about it. >> reporter: okay. so why not complain to your school? cal osha can be called in to investigate air quality, but only if the complaint is filed by a teacher or a staff. because there is an occupational standard that adequate ventilation must be provided to workers, but not for students. really? and get this, researchers say if veptslation rates were raised, there would be a 3.4% reduction in absences because of illness. schools would actually gain $3

. >>> we talk a lot about budget cuts, underfunded schools, even cities going bankrupt. that has a lot of people talking, legalize marijuana and tax it like crazy. according to harvard economist jeffrey myr on, legalizing pot could save the government $7.7 billion in enforcement costs and bring in $6.2 billion in tax revenue. those a total of almost $14 billion in savings and revenue. then there's the other part of the discussion, people that argue that pot isn't really bad for you, that in some cases it has major health benefits. i want to bring in cnn's chief medical correspondent dr. sanjay gupta. you have a special about marijuana called "weed" airing this weekend. you have talked with doctors, growers, and dispensers. you have researched this for over a year and what's fascinating is you have had a change of heart. >> i think that's very fair to say, john. i have had a change of heart. i had been critical of medical marijuana in the years, written magazine articles about it, sort of pointing out this in my opinion at that time the evidence just didn't stack up, and,

manager met with pension funds yesterday to determine the pension shortfall.orr says pensions are underfunded by about three and a half billion dollars. while those funds estimate the shortfall is less, about 600 million dollars. a detroit reporter tells us...the meeting was likely the first of many. "this is an ongoing dispute and i don't expect that the differences between the emergency manager's numbers and the pension fund's numbers are going to be resolved that lasts a few hours. my suspicion and again this is just a suspicion is that this will be the first of several kinds of these meetings that will take place here in the coming days and weeks." that was kirk pin-ho, of crain's detroit business. the deadline to file challenges to detroit's bankruptcy elligability was last night. pinho says the next battle coming down the pipeline: pension funds that filed challenges under grounds that pensions are protected under the constitution, and therefore detroit was never eligible for bankruptcy. super storm sandy may have a lasting impact on both new and existing homes in the eastern seaboard h

. >> reporter: chronic underfunding left school districts strapped for cash. funnel as much money as they can into classroom instruction with little leftover for ongoing plain nens. >> in the private sector, maintenance program for a ve ventilation system might mean vitsing three, four times a year. a school district can visit a unit when broken. >> reporter: it's not a situation turning around soon. >> without a more significant investment from the state, the systems will become more delap tated over time. >> i'm glad the situation is being brought to light now because something definitely needs to be done about it. >> so why not complain to your school? interestingly enough, cal osha can be called in to investigate classroom air qualify but only if the complaint is filed by a teacher or staff. that's because there is an occupational standard in california adequate ventilation must be provided to worker but was not students. really? get this, researchers at berkeley lab say if ventilation rates were raised to current standards there would be i 3.4% reduction

. ~ so and i know sheriff mirkarimi probably has some unfunded or definitely underfunded mandates that are before him. could you repeat what you think your requested need are -- is for two staff and how that would help to address that requirement that you have now with the realignment? >> yes. as i mentioned, there will be 2,200 parole violators that will be assigned to the public defenders office next year. the reason why we know that's true is because the contract is now held by this group called cal pap which has a contract with the state and that's how many hearings they handled last year. the department of corrections notified us to expect that they were going to have 5 to 10 cases of parole violators, that they're going to be referring to us every day. those individuals will be arrested, they'll be brought to court and will be we'll be assigned to represent them. they'll have to be interviewed the same day to find out what their circumstances are and then brought to court that same afternoon where they'll meet with a commissioner and we'll be offered a settlement offer to see whe

the report out today shows a record amount of underfunded pensions for the 2012 fiscal year at s&p 500 firms. data shows a combined short fall of more than $450 billion, that's nearly $100 billion less than a year ago despite mass sir gains in the stock market. >>> a staggering 1.2 trillion in corporate profits from america's biggest companies being held in offshore accounts to avoid taxes. a study from the watchdog research group that analyzes regulatory filings of the top 100 publicly traded companies found 82 of them have subsid yardries in shelters like hong kong. topping the list general electric, apple, microsoft. >>> with all that money parked overseas, it looks like investors are putting more money into bond funds. a new report from the investment company institute shows that last week more than 4 billion flowed into long-term taxable bond funds, the first time in at least a month investors put money into taxable fixed vehicles. in the same period, more than $2 billion was pulled out of municipal bond funds. when you think of banks you think of the giants, jp morgan, wells farg

holder gets to once again be the public either directly or through those pesky soon to be more underfunded pension fund. bubbles and how the fed got as here with dean baker in just a minute and here is what's in your prime interests. increasingly we live in an economy that's driven by fire that would be finance insurance and real estate now over the last three decades it's quadrupled in size relevant to the size of the rest of the economy here to discuss this and the nature of how financial bubbles are fueled and destroyed is dean baker he's the co-founder of the center for economic and policy research and also author of false prophets dean thank you for joining me for a man so how did we get here in this fire economy over.

funds at the end of the day unfortunately it's the average people whose pensions which are already underfunded could suffer from this right no no you're absolutely right i mean there are pension funds even universities who have invested in these secure you securitized mortgages and that's really. a lot a lot of the problem in modifying these loans is you can't you don't know who to go to and so many investors do rely on this loan on these loan payments and interest that are they have to be paid off by home. mourners the problem is that these homeowners just can't afford them and and so this really is their last resorts of five well let's let's say that the suit is dismissed or whatever so who exactly does richmond california plan to help with the use of these minute domain plans sure well it actually they've already offered to buy more than six hundred homes and most of these mortgages are underwater mortgages that the residents have been current on so these people have continued to pay a few of them are delinquent but for the most part these are people who have even though their homes are. yo

holder gets to once again be the public either directly or through those pesky soon to be more underfunded pension fund. bubbles and how the fed got as here with dean baker in just a minute and here is what's in your prime interest.

hikes and pouring money into high profile sporting events while social services remain severely underfunded. for some thrills and spills from some of the world's finest pilots as russia's mox aviation shows some of the biggest dead devils don't need an object seat or a supersonic jet engine is the difference expect. it's not the size of the engine that matters it's how you use what you've got that's what the pilots of first flight rushes only aerobatics team using propeller plane say no jet engines here no mach two or eject buttons just good old fashioned pistons and plenty of guts at air shows like max b.'s pilots may no longer be the main attraction but propeller planes were the first to take on aerobatics and they plan to stick around. a main goal is to show everyone how beautiful flying can be and to demonstrate the potential of these planes and popularize bullets and aerobatics though these planes may not be so big and powerful they have great potential. reminiscent of the barnstormers of the one nine hundred twenty s. in america this team's planes are equipped with smoke systems that