Tuesday, August 8, 2017

California cities no longer function

Sacramento – Municipal governments exist to provide essential services, such as law enforcement, firefighting, parks and recreation, street repairs and programs for the poor and homeless. But as pension, health-care and other compensation costs soar for workers and retirees alike, local governments are struggling to fulfill these basic functions. 

There’s even a term to describe that situation. “Service insolvency” is when localities have enough money to pay their bills, but not enough left over to provide adequatepublic service. These governments are not insolvent per se, but there’s little they can afford beyond paying the salaries and benefits of their workers. 

As a city manager quoted in a newspaper article once quipped, California cities have become pension providers that offer a few public services on the side. It’s a sad state of affairs when local governments exist to do little more than pay the people who work for them.

No comments: