This rising red ink must be stopped before stressing families and wrecking the economy with higher taxes, especially at a time of potential bond credit downgrades and an uncertain economic future.
Regardless of the court’s decision, one thing is clear: cities are subject to the rule of law, and must be held accountable.
Texans are routinely given no say on the kind of government that presides over them, the level of taxes they pay and the debts they owe, or who represents their interests at city hall.
Today, Texas’ 13 state-governed systems have unfunded pension liabilities totaling $8.7 billion, or an average of $171,155 owed per active member.
Research shows that a minimum wage most hurts those it’s intended to help, particularly the young, low-skilled and less-educated, as they have fewer job opportunities.
Among the top ten most populous states in the nation, the principal amount owed by Texas is $225 billion and is the 2nd largest total next to only California who is $268 billion in the hole.
As the Foundation and many others have argued in the past, putting Austin between Texans and the pension plans that serve them is poor public policy, and an entirely new approach is needed.
Moving forward with a living wage proposal will only end up worsening the district’s fiscal position and possibly force more students to leave the district. SAISD would be better off scrutinizing its budget for efficiencies that can be redirected to merit-based raises for deserving employees thereby helping employees, taxpayers, and students.
The key to returning Texas’ state and local retirement systems to sound footing is the elimination of defined benefit plans for new employees and transitioning the state’s workforce into a defined contribution-type system. By changing how Texas offers public pensions, we can achieve a system that is sustainable system for all.
With greater government transparency comes greater government accountability and opportunity. That is, by making it easier for more eyes to be on state and local government spending, there’s a better chance that one or some of us will discover ways to make government more efficient.
Center for Local Governance Director James Quintero's testimony on local ordinance integrity presented to the Senate Committee on Intergovernmental Relations.
The city of Houston released a new report that pegged the city’s pension liabilities at $5.6 billion in FY 2015, billions more than in the previous fiscal year.