07/04/2022

How to Restore Financial Sustainability to Public Pensions

The report from the League of California Cities includes a section entitled “What Cities Can Do Today.” This section merits a read between the lines:

. . . 2 – “Consider local ballot measures to enhance revenues: Some cities have been successful in passing a measure to increase revenues. Others have been unsuccessful. Given that these are voter approved measures, success varies depending on location.”

2 (reading between the lines) – RAISE TAXES. Do what you’ve been doing incessantly ever since pension benefits were enhanced right before the financial crisis of 2000 wiped out the pension fund surplus. Raise taxes. Say it’s “for the children” and to “protect seniors,” and based on the last several years of data, there is an 80% chance voters will approve the new tax.

View Article