Now, the GASB (govt. acct. stds. bd.) is proposing rules that will give taxpayers visibility into what mayors are doing by forcing mayors to add promises to the balance sheets of a city and use lower, more realistic, discount rates. The net effect seems small
According to the Center for Retirement Research at Boston College, a group of 150 public-employee pensions that were 72%-funded in 2013, meaning their assets were 72% of their obligations, would have been only 65%-funded under the revamped rules.
But for cities and states with particularly egregious accounting, the effect is likely to be much bigger.
In a related development, young people seem to be noticing that they will be stuck with the bills run up by irresponsible politicians. Here is an advertisement aimed at Louisiana's Federal Senator: