Local Governments Founded in Deception
One can’t call the vote “party line” because Rhode Island’s Pension Review Board is technically non-partisan, but as Marc observed on Wednesday, the vote to bring investment estimates closer to what the pension fund has actually been earning nearly fell along what might be called a “union picket line” vote. Basically, the question was about whether to give Rhode Islanders a better sense of just what their elected officials have promised, and that’s not a reality that the unions want the public to face.
The perspective of one public figure who often falls on the other side from the unions is very interesting:
With school districts now facing a $55.5-million hike in pension costs in 2012-13, beyond the increases they were already expecting, Tim Duffy, executive director of the Rhode Island Association of School Committees, said: “I don’t know how local government is going to continue to exist, given all the financial stresses.”
If it’s true that the pension promises of government amount to a self-inflicted and fatal wound, maybe local officials should lead the way in accepting reality, especially school committees. That’s going to mean completely rethinking the way in which they structure compensation. Like countless private-sector organizations, families, and individuals, they’re going to have to begin doing much more with much less. If that’s an impossibility, as Duffy seems to imply, then local government is a failed experiment, anyway.