Dallas miscalculates its pension liability?
NY Times:
I recall reviewing the audit for the city of Houston back in the late 1970's and it was clear that that city also had not invested an adequate amount to cover its pension liabilities. I was able to get that disclosure in the official statement of the city that was used to sell bonds, but it had no adverse effect on the cities AAA credit rating at the time. It also did not change the cities handling of its pension liabilities.
Houston is somewhat different from Dallas in that it expanded its boundaries to capture the growth in the tax base as the city expanded. Dallas was locked in by smaller cities that surrounded it and those cities benefited from much of its growth.
It appears they made the same mistake of cities and states dominated by Democrats. They made future promises they can't afford when it comes to pensions for government workers. I feel certain the auditors noted the problem several years ago.
A Hive of Growth, Dallas Flirts With Bankruptcy
Decades of faulty assumptions by pension officials have left the city struggling with more pension debt, relative to its resources, than any major American city except Chicago.
I recall reviewing the audit for the city of Houston back in the late 1970's and it was clear that that city also had not invested an adequate amount to cover its pension liabilities. I was able to get that disclosure in the official statement of the city that was used to sell bonds, but it had no adverse effect on the cities AAA credit rating at the time. It also did not change the cities handling of its pension liabilities.
Houston is somewhat different from Dallas in that it expanded its boundaries to capture the growth in the tax base as the city expanded. Dallas was locked in by smaller cities that surrounded it and those cities benefited from much of its growth.
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