How many times have we talked about health care costs and yet many people do not accept that spending on health care is what drives insurance premiums?
How many times have we talked about the generous total compensation of state and local public employees and still the fact that this is a main driver of taxes, especially property taxes is not accepted?
Not only are taxes affected, but states are forced to divert funds from other vital services to fund pensions and other retiree benefits. It’s not a matter of being fair or unfair to public employees, it’s a matter of being fair to all a states citizens.
A $76,000 Monthly Pension: Why States and Cities Are Short on Cash
” …the pension for Mike Bellotti, the University of Oregon’s head football coach from 1995 to 2008, includes not just his salary but also money from licensing deals and endorsements that the Ducks’ athletic program generated. Mr. Bellotti’s pension is more than $46,000 a month…”
” …The bill is borne by taxpayers. Oregon’s Public Employees Retirement System has told cities, counties, school districts and other local entities to contribute more to keep the system afloat. They can neither negotiate nor raise local taxes fast enough to keep up. As a result, pensions are crowding out other spending. Essential services are slashed…”
“… In San Francisco, the school board wants voters to approve a $298 “parcel tax” on real estate, ostensibly to raise $50 million to pay teachers a living wage…”
“…That’s a worthy objective, but it’s not the real reason,” said David Crane, a former trustee of the California teachers’ pension system. He said the school district’s retirement costs had grown by $50 million over the last five years, devouring resources that would have gone to teachers…”