California Municipalities continued to enhance pensions amid economic collapse

The L.A. Times reports:

A state oversight panel has identified about 180 local governments that increased pension benefits at a time when the state's unemployment rate was rising, housing prices were falling and the nation's banking system was in crisis. The enhancements covered thousands of public employees, adding tens of millions of dollars of new debt to local governments, analysts say.

Cities are now paying the price.

Costa Mesa boosted the retirement benefits of 84 firefighters, at a cost of $694,000 per year. At the time, officials thought the deal made financial sense because the firefighters union agreed to forgo more raises in exchange for new pensions rules that would allow them to retire at age 50 with 85% of their salary if they'd been on the job 28 years.

Now, Costa Mesa says it's facing a $1.4-million deficit and has sent layoff notices to half its employees. Officials plan to eliminate the Fire Department, contracting with the Orange County Fire Authority in a move they say will save money.

Would you want the government running your health care plan after reading this?? The God that failed.