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CSPP
The Collapse of Public Pension Funds Is No Longer a Distant Prospect
This op-ed from Bloomberg perfectly spells out the "destiny" of the pension crisis. It is, as the column states, no longer a distant threat but an immediate one. Politicians can not pass bills making the matter worse and ignoring the need for reform because they will likely be around to face the collapse. They can no longer, in good conscience, ignore the need for reform measures.
I've actually learned a lot in the past few weeks about the public's general lack of knowledge about unsustainable pensions and how they affect all aspects of our life, including our children's schools. This 'awakening' came on NextDoor, of all places, in a 'debate' over school parcel taxes. Those who questioned the tax were vilified, but absolutely no recognition of the problems faced by school budgets were mentioned. I realized that this is because the vast majority of people are totally unaware of the problem.
The consultants paid to 'sell' these parcel taxes - and all taxes, for that matter - leave out any mention of pension debt. Maybe because the issue is complex, maybe because it doesn't sell well, maybe because the unions have demanded that it not be exposed.
Whatever the reason, my contention is that it is insulting to the taxpayer to assume we won't understand and, moreover, that the school districts have an obligation to fully inform the public. The only way to solve a problem is to admit there is one.
It's possible that school districts rely on the same theory as all government entities, i.e. that they won't be around when the ax falls. This op-ed clearly outlines the likelihood that most or many of them will have to face the music sooner than they thought.
Regards,
Jody
CSPP