LA and SF face large budget deficits because their mayors won’t face up to police unions. The consequences for residents are terrible and there’s an easy solution. LA and SF spend hundreds of millions of dollars per year on extravagant subsidies for retired employees, the most expensive of which are retired police who can retire early. But those subsidies aren’t necessary. That’s because of Covered California, where even retired police with large pensions can get federal and state subsidies:
Covered California has a marvelous website. LA and SF should use it.
*These insurance subsidies fall into an expense category known as “Other Post-Employment Benefits” (“OPEB”) about which you can read more in the cities’ Comprehensive Annual Financial Reports.
