(Cincinnati) -- The City of Cincinnati's pension fund is underfunded by an estimated $860 million dollars. Mayor John Cranley says he has a solution that will work, even if it won't be popular. He wants the City to go to a federal judge, with retirees and the public employee unions, and let the judge decide changes to the cost of living adjustment formula and the City's share of medical costs.
Cranley says changing the COLA formula will demonstrate the City is getting a handle on the pension fund, and that will keep the City's bond rating from dropping. Next week, representatives of Moody's, and Standard and Poors will be in Cincinnati to discuss bond ratings. So, Cranley wants City Council to approve his measure by Wednesday.
Mayor Cranley says without changes to the pension, the city faces a downgraded bond rating, which will make borrowing more expensive, and, he says it faces mass layoffs and bankruptcy.