San Francisco has a staggering $5.8 billion pension liability, and a series of retroactive benefit increases approved by voters over a dozen years is largely to blame, according to a recently released civil grand jury report.Nonsense. They can pay for it all with unicorn farts.
That generosity is contributing to an eye-popping increase in the public payroll. The grand jury found that the cost of city salaries and benefits, which include pensions, has grown by 33 percent over the past decade — and it’s expected to keep up that pace for at least five more years. That will add another $698 million to the public tab.
And while these estimates come right out of the city’s budget forecasts, said grand jury member Christopher Bacon, “it’s a bigger problem than I think the city has wanted to face.”
According to veteran City Hall watcher and Chamber of Commerce Vice President Jim Lazarus, the mounting retirement expenses “for the foreseeable future (will) require a substantial general fund payment into the pension system.”
That, in turn, could force the city to cut services, and it may “affect the number of employees ... and the wage and benefit packages (the city) can afford,” Lazarus said.
Tuesday, July 11, 2017
SF Drowning in Debt
As Margaret Thatcher said, the trouble with socialism is that eventually you run out of other people's money: