Today’s Commercial Appeal has a story about Wharton’s plan to fix the city’s broken pension plan, “Law could boost city pension costs.”
Memphis does not have enough money to meet the upcoming pension requirements. In July, the shortfall will reach $740 million. The city has dawdled on this topic, much as the federal government has kicked pension and Social Security woes down the street. This, of course, is no solution at all.
In the legislature lawmakers are mulling a proposal to require cities to meet the Annual Require Contributions (ARC).
Wharton says he can attack the shortfall by adopting cost saving measures. He’s going to tangle with unions with this and with the taxpayers should he want to raise property taxes. The City Council will weigh in, too. They are going to have to live up to the promises they have made Memphians as elected officials, too.
Tonight’s Midtown Republican Club guest speaker, Joe Saino, has studied this topic intently. It will be interesting to see what he thinks on this very important topic.