
San Ramon’s pension tax: Ingenious? No, illegal
For public officials, generosity can be the mother of invention – and not in a good way.
This is certainly so when it comes to generous pension promises to government employees. Up and down California, politicians have had to scramble for inventive ways to pay for their munificence to public-sector retirees.
Too often the funding strategies are more reckless than resourceful.
As the pothole-pocked streets in many communities show, “delayed maintenance” is one formula for freeing up money for pension costs.
Scores of California localities have also turned to risky finance in the form of “pension obligation bonds.” Either they’ve sold bonds in order to pay near-term pension bills with long-term borrowing (essentially off-loading today’s financial woes onto the next generation), or they’ve tried to master the arcane Wall Street art of… Read More