Taxes & Spending

Moody’s calls out Dallas’ facade

It was only a matter of time before someone pointed out that the emperor had no clothes. For the City of Dallas, that moment came yesterday, when Moody’s Investor Service downgraded the City’s debt rating due, in part, to Dallas’ “very large and growing unfunded pension liabilities.” After years of providing defined benefit pensions — something a majority of the private sector moved away from long ago — the system has finally been exposed for what it is: unsustainable.

October 29, 2015