State law blocks financial reform for local pension plans
Texas Insider Report: AUSTIN Texas At a news conference this morning Texas Association of Business CEO Bill Hammond announced support for HB 2608 by Rep. Jim Murphy. That bill will return local control to cities for their pension funds for municipal employees. The city of Houston alone is facing a $5 billion gap in meeting pension requirements with no control over how they could reform the system to meet those responsibilities.
Years ago city councils across the state made promises that cannot be kept today" said Hammond. Basically they gave away the house knowing full well that they wouldnt be serving at the time. They made promises for pensions and health care benefits that will bankrupt major cities across the state. What happened are the associations and unions came to Austin and got these benefits put in state statute. In order for cities to reform these programs we are going to have to allow them to do it something they cannot do under current state law. This bill allows them to do it."
A House committee is hearing the bill today. It is our hope that the committee and full House will approve this bill and send it to the Senate for consideration quickly" said Hammond. This is much needed reform that not only impacts Houston but major cities across Texas."
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