As reported by the Orange County Register in this story (free registration required), Orange County faces a potential $80 million deficit if a firefighters union sponsored proposal passes on next year’s ballot.
Much of the problem has to do with local pensions, a problem that is plaguing the City of San Diego. Several articles have been written (here, here and here) about their pension problems, which threaten to drive the City of San Diego towards bankruptcy.
To say that government pensions are generous is an understatement. A friend of mine worked for 25 years in a neighboring county. She retired and now receives about 60% of her final salary, every year. Assume you work for 25 years in private industry. Will you receive a pension at 60% of your final salary? Will you receive health care while you’re retired?
The only defense I can make for the pensions is that government workers do not make as much while working as people in private industry. But that’s the only defense I can make. Meanwhile, county supervisors (and city councils) tend to sign pension agreements that later generations can’t afford.