The impact of unfunded liabilities

All true but the lack of knowledge here is not the result of voter apathy but rather a distinct lack of transparency from our local government.

For example, take an article in the San Mateo Daily Journal on the same day as Ms. Tsai’s column.

It was reported that the San Bruno police unit agreed to a new wage increase of 16.25% over a 3 1/2 year period. The city manager is quoted as saying the new contract will cost San Bruno $4.07 million.

A ChatGPT search would tell you San Bruno’s current safety employee unfunded liability is $65.7 million. Would it not be reasonable for San Bruno to report how this new contract impacts this figure? This isn’t monopoly money. ChatGPT estimates the contract would increase the unfunded liability about $7 million to $10 million; meaning the city understated the cost to its residents three-fold. This is not to single out the San Bruno city manager as this is standard practice for all Bay Area cities and counties.

Maybe Ms. Tsai can dig further on this topic including even the unfunded liability amount itself is underreported by assuming a best-case scenario investment return rate.

C.J. Keane

Redwood City