and has been underfunded for the last three years. thus facing more contributions by the city, and taxing our general fund. >> supervisor elsbernd: just as a side, jay, if you could also prepare, tell us what the city's contributions was in those years as a percent of payroll. >> and they're also facing a higher retiree active ratio than they had previously. for example, the fund since 1984 has the following -- volatility of fund loss significant value in the dot-come crash of 2001 and as did most of us in our private funds. we all know about the domcom. it became over funded in the 2004 to 2007 when it was decided not to have employees or city contribute to the fund. >> supervisor elsbernd: i'm just curious. when the city hit that overfunded status, did you do the breakdown of the various investment categories that we have, and determine what investment category it was that led to that overfunding? i'll tease you. it was the alternative investments. but go ahead. >> (no audio). >> supervisor elsbernd: okay. i missed that point in you

and has been underfunded for the last three years. contributions by the city, and taxing our general fund. >> supervisor elsbernd: just as a side, jay, if you could also prepare, tell us what the city's contributions was in those years as a percent of payroll. >> and they're also facing a higher retiree active ratio than they had previously. for example, the fund since 1984 has the following -- volatility of fund loss significant value in the dot-come crash of 2001 and as did most of us in our private funds. we all know about the domcom. it became over funded in the 2004 to 2007 when it was decided not to have employees or city contribute to the fund. >> supervisor elsbernd: i'm just curious. when

my thoughts, i'm curious for yours, finding one, san francisco employee pension fund is current underfunded by more than 2 billion. i would agree, i think -- suggests that. madam clerk, are you following us as we did through in finding one we disagree with. finding 2, the retirement board did not complete a failure absences subsequent to the funding loss in 2008-09. i mean there's kind of two ways you could go here. if you buy into the grand jury's concept of what a failure analysis is, sure you could agree with that. but having served on the board, analysis of what happened. did it meet your definition of failure analysis? maybe not because you seem to be caught into one specific definition of what a failure analysis is but i believe the board did a very there are row job of analyzing how the portfolio went down so i would disagree with this finding. >> supervisor chiu: i could go either way on that one. again, i think supervisor elsbernd has laid out the perspectives that there was a lot of analysis but not exactly as the civil grand jury suggested. i think i would agree with them there w

is over $2 billion, and just to remind you the jury notes that the actual underfunding is $3 billion, but it is reduced by the fund's estimate of its 7.66% future investment returns. finding no. 2, the jury said that the retirement board did not complete a failure analysis downturn. the pension board and staff responded that the losses were the result of unprecedented conditions in the financial market. they say that the board did conduct an analysis because they asked their advisers to make a report on the reasons for thee

one result of the 2008-09 losses is that the san francisco pension fund is underfunded.ly valued at approximately 15 billion. but actuaries estimate the funding level needs to be over $18 billion to continue meeting retirees. assuming continuing investment gains and no more investment losses, the city, as employer, needs to take at least $2 billion from its treasury, from now until 2032 to make up for the 2008-09 underfunding. note from this chart, which i don't know if the camera can get that, but the actuarially projections presented to the board showed that if investment returns do not meet expected levels city payments will rise even more and continue to be high, until the year 2032. are more losses, the city would need to pay hundreds of millions of dollars a year, and still might not restore funding by 2032. one of the immediate drivers of high risk policies and practices is the assumed investment return. at this time, i'd like to introduce helen blum. she will review the jury's findings on the assumed investment return. she will also answer the responses that the

our schools remain underfunded by 22% but despite this we have been able to maintain our$mk ei-commitment. let me be clear, there is no extra money as a result of propwñ?ñ 30. on our website we have included frequently asked questions regarding proposition 30 and what it means÷=u b district. for more information visit=;]!wt www.sfusd.edu. thank you for that i've received from the public, askingt aboutb "bóweme ?ñ information around prop 30. i also would like to share that as superintendent i often receivec "1? and members of the communityj about therxñ?ñ? direction of our schools. and while we are fortunate to receive2 feedback one of the concerns i hear from many is whether or not standardized testing in math and/]ñ?ñ? english has narrowed what and how we teach our students. the answerwe boo to this question is#v÷ux]ú an.Ñr mastery of specific skills and subject materials align to state standardscñ?ñ? in math and english that are assessed, usingdñ?ñ standardized tests are only a small part of what is being taught in our san francisco schools. q+k ññ our schools who have made the greatest

state houses, expenditures are outpacing income, and public pension obligations are drastically underfundedn december 2010, some believe a day of reckoning is at hand for many states that could require another big bailout package. >> the most alarming thing about the state issue is the level of complacency. >> meredith whitney is one of the most respected financial analysts on wall street. she made her reputation by warning that the big banks were in big trouble long before the 2008 collapse. now she's warning about a financial meltdown in state and local governments. >> it has tentacles as wide as anything i've seen. i think, next to housing, this is the single most important issue in the united states and certainly the largest threat to the u.s. economy. >> why aren't people paying attention? >> 'cause they don't pay attention until they have to. >> whitney says it's time to start. california has a credit rating approaching junk status. it spends more money on public employee pensions than it does on the state university system. arizona is so desperate, it sold off the state capitol, supr

what about the underfunded pensions? 55%, 65 in the red zone. >> you can talk about what it's like to raise a family on $15,500. those economics are bad for the united states. you must pay workers enough to buy the products they sell. when you justify impoverishing hard-working people, you will see, as the report points out, it has a negative effect on job creation, a negative effect on demand. supply side economics failed. it's time we try some demand side economics. >> if you're going to tell employers what they have to pay their workers, then employers are simply going to go elsewhere unless the workers increase their productivity. what we're seeing right now is a trend towards more part-time work because of the new health care law. we're seeing that machines are replacing workers. you go to cvs, you see these scanning machines. >> i'm not telling walmart what to pay its workers. i'm saying in america we have a process called collective bargaining which allows the management side and the unions to come together and de

recommendation no. 1, san francisco employees retirement system board addresses the 2 billion underfunding in the san francisco employees retirement system pension fund by forming a high level task force a panel of experts and community groups to develop courses of action. this is a very specific finding and one i would disagree. i think the city has been proactive on this as evidenced by a number of measures passed by the electorate without such a task force, you have an elected board of supervisors, mayor's office, i don't think we need an additional layer to address this. >> supervisor chiu: i agree. last year with proposition c we formed groups of city officials and experts and community groups of public to figure out how to move forward. that is appropriate when trying to come up with a proposal but i think an ongoing continuous task force, we have an awful lot of task forces in the city so i would agree that's not something i would support at this time. >> supervisor elsbernd: recommendation no. 2, adopt a realistic and consistent formula for estimating assumed expected return rate.

i think especially given the fact that we feel the state is underfunding us now. so to take anything from that would not be good. >> so in addition to the school budgets that would be affected we're talking about massive layoffs that would lead to vacant buildings and a reduction in commercial tax revenue, a large source of funding for local governments, more reasons than we need to avoid this fiscal cliff. >>> following mitt romney's sound defeat top republican officials take stock of what went wrong. members of the gop tell the washington post they plan a series of polls and focus groups to find new ways to appeal to more voters. could it lead to more cooperation with the white house? we put that question to former house speaker newt gingrich. >> i do think the problems we face are so large that it's irresponsible for the two governing parties to just start out by saying let's have four years of gridlock. they should at least try to find is there a common ground which is compatible with the values of both republicans and democrats that at least moves the ball fo

that's partly a problem of cost because the agency is underfunded but i think the agency is not focused enough on the need to generate deterrent. >> sometimes they are giving out parking tickets. >> susie: let me just jump in here because we have less than half a minute. investigator, you're talking about things that they have to restore. investigator confidence is an issue, things like the flash crash and this not really making wall street accountable for that financial crisis. so what be done to restore investigator confidence in a few words? >> in very few words, enforcement is one thing. the public wants to know that those who are culpable will be held accountable. i don't think that has really happened because the sec has been too focused on quick settlements. beyond that we've got to deal with systemic risk and the really deep structural vulnerabilities that are whether the floo things like money market funds. that is the short term agenda. but on the background the basic thing to say about elise is she is very oriented toward consumer protection and does believe in a restoring in

muni is underfunded in many areas, particularly in its capital operations.e need to focus on it and because of that i think it's appropriate, as our mta director has proposed that over 75% of the funding source is going to capital needs. 5.1 million out of 6.7 million of the transit performance initiative. all that being said obviously i do alsoúq%( f5 agree that addrg the plight of young people and students on muni is very important. i want to thank all of the community advocates who have, for the past two years, have been working to move this issue forward including parents and students that we've heard from today in my own district. i will have and will continue to support free muni for youth. as i stated before, this is a policy that is free muni for low income youth. i think it's important to build a ridership with a new generation of san franciscans. when i was in high school i regularly rode public transit and it's one of the reasons why it's a main mode of my own personal transit today. i think it's important that we develop these habit among young

action is sort of an after the fact in a lot of cases it's very difficult to prevent fraud they are underfunded they don't have enough people etc etc etc but the reality is that we can't wait and expect them to do their job we have countless instances where they failed so what we need is something that will be there when and help folks when they don't do their job and we have a couple of reform measures that we're working on a customer protection fund to provide some insurance for when they fail again an alternative form of segregation were instead of giving your money to a broker a commodity broker you leave it at a bank and margin your positions from there that puts you in the f.b.i. c. system and prevents the broker from swiping the funds in the middle of the night there we would guess themselves or where is it possibly on the horizon i appreciate you talking about all this with us john breaux i will wait to see that that report from the democrats before we unfairly say that they're not you know coming out and saying maybe what they should will be interesting to see if my couple want to as o

they are all underfunded. all of them have increased their tuitions three times in the past five years. it's a huge unfairness financially for the taxpayers of maryland. we are in debt. we have a billion dollar structural deficit. we can't afford this extra money for people who are not here lawfully. and you cannot argue with the numbers. >> well, the numbers -- >> we can't afford not to have these people become better wage earners and everybody that, the facts are very clear that if you have got a college degree, you're going to earn a lot more in this country than if you don't. so that's going to more than compensate for the lesser amount. >> the calculator works both ways. we're talking about short term costs and long-term benefits if. what about the benefit of having more educated workers. >> well, first of all, let's be honest. let's not get emotional and say they're going to earn more money. under current law they cannot be employed. if fox 45 wanted to employ one of these people, their attorneys would a