"The city’s pension fund for its police officers and firefighters is near collapse and seeking an immense bailout. Over six recent weeks, panicked Dallas retirees have pulled $220 million out of the fund. What set off the run was a recommendation in July that the retirees no longer be allowed to take out big blocks of money. Even before that, though, there were reports that the fund’s investments — some placed in highly risky and speculative ventures — were worth less than previously stated. Now the fund has asked the city for a one-time infusion of $1.1 billion, an amount roughly equal to Dallas's entire general fund budget but not even close to what the pension fund needs to be fully funded. Nothing would be left for fighting endemic poverty south of the Trinity River, for public libraries, or for giving current police officers and firefighters a raise."
If Georgetown's leaders think pension problems in Dallas and Houston won't affect Georgetown, they are in for a rude awaking. Money that the State of Texas takes to solve other city's pension shortfalls, just wait its coming, will impact the state money available to the citizens of Georgetown and all Texans. Who knows what the state might do? They could keep part or all of the sales tax revenue, impose a tax on utilities, and any other source of revenue needed to bail out unfunded Texas pension funds. The possibilities are endless and creative legislators, under political pressure, will be very innovative.
Georgetown needs to get its pension unfunded liability to zero as soon as practicable in order to reduce its risk.
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