When it comes to retirement and pension benefits, federal, state, and local government officials have all been humming the same mantra: never pay for something today if you can put off paying for it until tomorrow. Unfortunately, tomorrow is here. The federal government is on the hook for $41 trillion in unfunded obligations for Social Security, Medicare, and Medicaid, and state and local governments owe an additional $1.5 trillion to their state employees for health and pension benefits. The national reality of these promises started hitting home this year when …
Yesterday the Senate voted to end debate on a bill that requires police officers, firefighters and other first responders across the nation to submit to collectively bargaining. Before the Senate votes on final passage of the bill later this week, lawmakers really ought to take a very close look at a city council vote in the sleepy California town of Vallejo last week. The Vallejo City Council voted May 6 to become the largest city to ever declare bankruptcy in California. The cause of Vallejo’s demise? Contracts with fire and …
