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Aguirre Calls on S.D. Council to Reconsider Bankruptcy Reorganization

City Attorney Mike Aguirre called on the San Diego City Council to reconsider the possibility of bankruptcy reorganization. He based this conclusion from the latest report from the pension fund.

Aguirre Calls on S.D. Council to Reconsider Bankruptcy Reorganization

City Attorney Mike Aguirre called on the San Diego City Council to reconsider the possibility of bankruptcy reorganization. He based this conclusion from the latest report from the pension fund.

Speaking at an all-day budget hearing, Aguirre brought in auditor Joseph Esuchanko to confirm his warnings.

Esuchanko: We're creating liabilities much faster than we are creating assets and the problem with that is that now those numbers, as of October 31, now the shortfall is at $2.78 billion, correct? That is correct, alright 14.

San Diego pension deficit was half that amount earlier this year.

San Diego's Chief Financial Officer, Jay Goldstone, says the city will not have to cover this year's pension fund losses by contributing more to the fund until 2011.

Currently the city pays about $160 million a year into the fund. That figure could jump between $30 million and $70million.