Back in 2020 our Lords and Masters at City Hall cooked up a plan to impose a sales tax increase upon people buying stuff in Fullerton. It was staff-driven natch, and lazy liberals Zahra, Quirk-Silva, Flory and Fitzgerald were on board. It was called Measure S. See, they figured the path of least resistance was deploying a new tax rather than finally exercising fiscal restraint.
Measure S soon found itself in the crosshairs of Fullerton anti-tax advocates and some well-placed signs describing the true nature of the beast doomed it to failure come election time.
Well guess what? They’re at it again. This time the idea is something called a Pension Obligation Bond, a mechanism for paying off part of Fullerton’s massive unfunded pension actuarial liability at CalPERS, the State’s giant pension administrator.
An introductory briefing was on the Council’s agenda last Tuesday to start the cheerleading process – a process that will entail the employment of an “expert” who will certainly benefit from a positive result; and of course “bond counsel” the legal camp-followers who push bonds on lazy elected officials after a hot meal and a few glasses of wine.
As everybody knows, the interest on the bonds are ultimately backed up by the collateral of new property taxes. This revenue would go to pay down the pension debt and free up money owed to CalPERS for staff salaries and benefits that will ultimately, and ironically, increase pension debt.
Here’s the second kicker: because a pension obligation bond is not deemed new debt, per se, but a sort of pea-under-the-walnut shell maneuver, no vote of the people is required – as it is in the case of general obligation bonds. It just gets “validated” by a judge and goes through on the nod unless challenged. Ouch. Of course the Council, if it wanted to could put the issue on a ballot anyhow, if they chose to move ahead with this scheme.
Of course the strategy for this type of thing is to reprimand opponents by citing the fact that the daily cost is little more than a Big Mac, or some other trifle and in return we get…what do we get again? Our loyal and devoted “public safety” club will almost certainly gobble up the lion’s share of this taxpayer largesse, just like they already do, and we’ll be even worse off than we already are, and no desperately needed cultural changes will have been made.
I looked over the agenda material on line and found nary a clue as to how this was even agendized. Another smoke screen protecting somebody.