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Philadelphia has had economic crisis. what have you learned from allentown you will put into play. >> allin town is a great story, like every other rust belt city in the northeast and midwest. we were on the verge of collapse when i came in eight years ago. our economy was failing. we didn't have jobs, economic growth. we were really on the brink of bankruptcy. in eight years we turned that around. we now have a solid fiscal foundation to build upon. we turn multi-million dollar deficits, we solved our pension problem through aw "newsweek" solution we came up with. we're the only municipality ...

Required pension contributions last year. only nine. those are the states that have set aside less than 60% of the required pension contributions. $3.5 billion, detroit city manager kevyn orr estimates that's how much of the city's pension liability are unfunded making it a fifth of the city's debt. 36%, that's how much of its pension obligations the city of chicago funded last year. $1 trillion and possibly more is how much u.s., state and municipal are underfunded. the pension problem is very real. coming up, why you should be concerned even if you are decades away from retirement. cae and m...

Pensions that is affect afc being the city is playing out and lots of other places in the country. has an enormous pension problem looming on the state of horizon, chicago does and so do many other big cities. detroit and resolution to this pension problem, i think, will serve as an example to other cities grappling with the balance of interest between the creditors on one side and the retirees on the other. >> you say an extreme example. we talked about these stats in rents weeks but bear repeating. detroit is $18 billion in debt. the average police response time for high priority calls is al...

Approximately another $3.5 million is unfunded pensions. only $2 million roughly of that $12 billion or so is related to unsecured bond debt, the vast majority of it has to do with pensions and health care. >> why not seek a bailout? new york city in the '70s got a bailout from the federal government. why not try to seek a bailout from the state or the federal government? >> that was a different time, first of all. these are problems of detroit's own making. if we go back and look at the jen sus of these problems, 2005, 2006, the city borrowed $1.5 billion. that would secure the pension proble...

From a financial standpoint. i think other states and communities are facing this. frankly, the national government's facing it. >> it's going to be an interesting conversation that i think -- you talk to mayors. doesn't matter their party. you talk to governors. they whisper about this pension problem. they don't want to talk about it publicly. >> chicago's another place, you know, illinois. they're on the edge. we've had other cities come right up to the brink or go other. >> if you're a mayor you have to balance your budget. you can't eject ideology in everything. can take a lesson from may...