Orange County Supervisors Discuss Hiding $1.4 Billion in Retiree Liabilities
“… a recent legal opinion has concluded that the medical benefits are not vested, which means they can be taken away.”
These are the words of an Orange County official on whether or not the county needs to provide health care, per previous agreement to retirees. The answer is NO.
A few days ago I wrote an article about the pension crisis. We now know that in December 2006 all government agencies must report the unfunded pension and health care liabilities. Looks like Orange County will will be the leader in creating two methods of hiding the liabilities from the public and meeting their obligations under law. I am glad John Moorlach will be on the Board of Supervisors to note this.
How is OC going to hide the $1.4 billion in liabilities?
1. “Shift” the money to a “trust”, thereby not making it a County liability.
2. If that fails, just screw the retirees. Tell them that since they are not “vested” in the program–just a contract giving it to them, they don’t have to receive the benefit.
Isn’t that great, a while county saying they don’t have to pay their bills. Of course, if they admitted the unfunded pension and health care liabilities, the County will go into bankruptcy, they are caught in the classic government squeeze–caught between a rock and the hard truth. Isn’t it time all agencies come clean–not wait till December. This is budget time, lets be honest today, not in December when it is mandated.
BTW, why must telling the truth about unpaid bills and liabilities be mandated by law–shouldn’t government ALWAYS tell the truth?
REFERENCE:
How to make $1.4 billion in liabilities disappear
O.C. supervisors hear options on retiree benefits
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Steve Frank is the publisher of California Political News and Views and a Senior Contributor to CaliforniaConservative.org. He is also a consultant currently working on gambling issues and advising other consultants on policy and coalition building.
Read more of his work here or at his blog.
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