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Tuesday, Aug. 15, 2006 | Just in case our business- savvy city officials failed to notice, S&P reported in the August 12-13, 2006 issue of the Wall Street Journal on page B3, that many city pension programs are falling behind.
Although no mention was made of San Diego, it nearly matches the biggest shortfalls in Philadelphia with 53 percent of funding, Boston with 63 percent, and Chicago with 65 percent.
“Keith Brainard, research director for the National Association of State Retirement Administrators, says ‘public employees and retirees in cities with low levels of pension funding shouldn’t worry that they won’t get their pensions, because state laws (and Federal laws) usually protect those benefits.’ The real problem may fall on the taxpayers who would have to make up the shortfalls if the cities’ investments don’t catch up. ‘If you don’t pay now, it’s going to cost that much more later…’”
So, taxpayers of San Diego, you need not feel so alone and miserable. You have plenty of big municipalities for company who grudgingly will pay up in full. But one risk you need to realize: the longer you let raving Mike stomp around your precious china closet, the worse the damage and rougher it will be.