What's Half A Billion Here And There?
Sunday, the Comical reported on Lee Pothole Brown's gift of a billion dollar pension liability to the city of Houston
Now, it turns out that it's probably closer to $1.5 billion:
The city of Houston's pension funding shortfall may be closer to $1.5 billion over 18 years, not $1 billion as earlier estimated, according to an updated consultant's report, Mayor Bill White said Monday.At a specially called news conference, White affirmed the pension's problems as reported in Sunday's Chronicle. Many city employees can now earn more in retirement than they could while working, and a few will retire as millionaires.
The improved benefits were given under then-Mayor Lee Brown, whose administration determined the city could afford them.
Now, the city of Houston may have to issue bonds just to cover the rapidly escalating pension costs, officials acknowledged Monday. The only option White ruled out was a property tax increase.
There's your legacy, former Mayor Pothole. Well done.
Posted by Kevin Whited @ 03/01/04 23:23 | Houston | Technorati
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The Comical weighs in on the city's pension scandal on the editorial page today.
It's not surprising that the city of Houston's pension fund shortfall may be as much as $1.5 billion over the next ...
[Linked on 03/04/04 by PubliusTX Weblog]
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Comments
I think my original estimate of $2 billion is still better. The Chronicle has focused on the municipal plan that excludes Police and Fire. An examination of the Police pension's (https://www.hpops.org/image...), or annual report, shows another $257 million shortfall. Even though this is the most recent CAFR, the shortfall was calculated on July 1, 2002.
It is possible that the new revised shortfall considers the Police and Fire pensions, but it is not clear to me from the article.
Posted by Mister V. @ 08:53 on 03/02/04
Let me try again.
I think my original estimate of $2 billion is still better. The Chronicle has focused on the municipal plan that excludes Police and Fire. An examination of the Police pension's (https://www.hpops.org/image...), or annual report, shows another $257 million shortfall (page 28 of the CAFR or page 32 of the .pdf file). Even though this is the most recent CAFR, the shortfall was calculated on July 1, 2002.
It is possible that the newe revised shortfall considers the Police and Fire pensions, but it is not clear to me from the article.
Posted by Mister V. @ 08:56 on 03/02/04
Thanks for that info Mister V! I edited your comments slightly to fix the hyperlinks. Nucleus strips true html from comments, but if you just type in a url, it will automatically convert it to a hyperlink. Kind of goofy. Anyway, didn't want anyone to think I changed anything substantive (which I would never do).
Posted by Kevin @ 09:31 on 03/02/04
Expect the Chronicle to spill more ink about this on Saturday. There is a council meeting on Friday and this topic is sure to be front and center. My contacts say White would like to propose a solution that does not infuriate city employees. After all, city employees number 25,000 and are a natural constituency for White. Politically, he can't afford to alienate them.
Posted by Mister V. @ 19:58 on 03/02/04
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