Update (again) For those of us who suspect the Minneapolis consolidation is a bad deal for the state, there is some good news. According to the Strib, the police board voted against the consolidation last week. This should derail the deal because it was dependant on both closed funds (police and fire) consolidating.
Update: Unless you are a taxpayer in Minneapolis, you probably have not paid much of any attention to this story. Minneapolis desperately needs to off-load this problem on to the state. These pensions are sucking up the city’s levy increases and citizens are in revolt. (What happened to all the obnoxious yard signs that said, “Happy to Pay for a Better Minnesota?” OK, we still see a one now and then but their popularity has sunk.)
As a state taxpayer, you should care about this. Once this deal is done, the city’s old police and fire pension become your liability. The more we learn about defined benefit systems, the less confidence we have that Minneapolis will pay enough into the PERA fund to cover these promises. This deal, along with a special law to fund an annuity for a fallen MnDot worker’s family, are thought to be things the Governor (and his Minneapolis staff) want. Let’s hope the GOP does not give these away without a serious concession on the budget deal.