Pension Crisis Swamps Cities and Counties
[This falls under the category of “what were they thinking?!?” Discounting the right-wing bias source, the facts aren’t really in dispute… these changes are hugely costly, and we are going to be stuck paying for them for decadees. -Thomas]
Pension Crisis Swamps Cities and Counties
A turn-of-the-century bonanza for California public employees has become a fiscal nightmare for cities and counties attempting to dig themselves out of record budget deficits.
Virtually every local government in the state is being squeezed by pension bills that have come due during a period of fiscal crisis made worse by a severe economic downturn.
Shortsighted state legislators – spurred by public employee unions – in 1999-approved legislation (SB 400, Ortiz) that dramatically changed public retirement formulas. At the time, the financial world looked rosy, the economy was booming, budgets were bulging and everyone wanted in on the gravy train.
