- Voice of San Diego - https://www.voiceofsandiego.org -

Letter: Prop. B Is ‘A Fiscal Bomb’

 

It’s not surprising to see a majority of likely voters [1] saying they will vote for the pension reform initiative, but the recent independent analysis [2] of its likely costs gives reason for serious concern.

First, the change to a 401(k) plan was found to have a net cost of $13.5 million [3], because apparently the pension reforms already enacted are actually more cost-effective than those now proposed. That cost is supposed to be made up by a five-year freeze on city employee pay, but it only works if the freeze occurs (it is not assured [4]) and if pay continues to be held back after the freeze expires — for 25 years. What’s the chance of that happening?

As well, in the first few years, this initiative is acknowledged by all sides to be a net drag on the city budget of tens of millions each year. This initiative may appeal to people’s resentment toward city employees, but it looks like a fiscal bomb that could make things much, much worse for taxpayers.

Chris Brewster lives in Pacific Beach.


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