In his 2022 budget address, Milwaukee Mayor Tom Barrett wrote of his city’s predicament, “We are facing an unsustainable demand driven primarily by the pensions for public safety employees. We must begin preparing now, setting aside money to blunt the impact of the massive payments coming due in just two years.”
For many local governments, making a big deposit all at once and being able to budget for more manageable payments in the future, for both debt service and annual pension payments, can feel like a relief.
But there are many reasons it’s a bad idea, and one that many municipal-finance observers find problematic.
Author(s): Andrea Riguer, Katie Marriner
Publication Date: 26 May 2021
Publication Site: MarketWatch