Houston is facing a budget shortfall. The culprit? Over-generous pensions promised to city employees. The meal has been eaten, and you're being presented with the check. Hope you enjoyed the evening ...
A bit of a pinch
The coming shortfall in America’s fourth-largest city
Residential property values have held steady, for the most part, and the Institute for Regional Forecasting predicts substantial population growth in the Houston area over the years to come.
But John Diamond of Rice University takes a more negative view. He points out that the city has issued pension-obligation bonds that it will struggle to repay, as well as making promises about health benefits for the old that threaten to explode the rest of the budget. Ms Parker recently announced increases to premiums to pay for them, but Mr Diamond considers those merely symbolic.