Reply to How do we end Montgomery County socialism?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]Lmao.

The county was given a stern warning recently that its AAA rating was threatened.[/quote]
The main reason the county has a AAA rating is because it has an economic resource base that is fully independent of the county government. The workforce is highly educated, the regional economy is strong and generally considered recession proof. All of these factors provide comfort that the default risk is low, even during an economic shock. The fiscal performance of the county government on the other hand was admonished due to debt service being a high percentage of spending and an expectation that spending will increase faster than revenues. [/quote]
Well there's that. But also they were warned about continually diverting pension funds.[/quote]

Not pension funds.  OPEB.   Other post employment benefits for retirees.  There was a GASB rule put in place about 15 years ago requiring governments to prefund health benefits the way they prefund pensions.   Right now most local governments are pay-as-you-go.   But it's not sustainable.  And it's not fair to taxpayers.   MoCo isn't keeping up with its prefunding obligations.[/quote]

The Council in particular has been told what it can do to restructure spending, but it doesn't want to do it.  At least not this Council.   They all care about their pet projects too much.  [/quote]

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