LaFaive, Vernuccio in Washington Free Beacon
Fiscal Policy Director Michael LaFaive and Labor Policy Director F. Vincent Vernuccio were both cited in a Washington Free Beacon story about the latest developments in Detroit’s bankruptcy proceedings.
Federal Judge Steven Rhodes ruled Tuesday that the city’s bankruptcy can proceed and that pensions could be cut as a way to reduce a $20 billion overspending crisis.
“The judge is sending a message that it’s a myth that defined benefit plans provide guaranteed income with no risk and that nothing can be done to affect them,” Vernuccio said. “This is going to send shockwaves throughout cities teetering on the brink.”
LaFaive said deep cuts to pensioners could be avoided if the city were to embrace privatization.
“Competitive contracting is a superior tactic than deep cuts,” he said.