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> On the state/city level, all the money is going to former employees for labor performed in previous decades. The scheme is voters today purchase government em
by OrvalWintermute 4y ago
> On the state/city level, all the money is going to former employees for labor performed in previous decades. The scheme is voters today purchase government employee labor for lower cash outlay today hence lower taxes today, then subsequent taxpayers pay higher and higher taxes as the can gets kicked down the road.
This is why contracting out services makes public sector CFOs so happy.
Replace a large % of your civil servant workforce with a company that specializes in that one function, eat potentially higher or inflated OPEX, but no long-term costs regarding pensions. If the requirement for services change, scale down the contract.