Health & Fitness
Why Doesn't Acton Want to Save Money for OPEB?
Acton's plan to "fund" OPEB ends up with a larger OPEB obligation than we have today! Is the town serious??
Acton has a huge unfunded liability for future healthcare costs for retirees. The Segal company calculated the "present value" of this liability at $100 million. It said that to fund this over 30 years, we would need to save $5.3 million per year, starting in 2010.
But we've saved nothing so far, and the plan now is to set aside $500,000 next year. Anyone who looks at this knows this figure is grossly inadequate. And Acton Forum showed that the ALG plan to increase this payment by $200,000 a year will end up costing taxpayers over $120 million in 30 years. (See related story)
In short, saving $500,000 isn't a strategy to fund our OPEB obligations, it is a strategy to get people to think we are funding OPEB but to not actually fund it.
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So why doesn't Acton want to start saving money for this future liability? The reason is simple: Our plan is to increase spending instead, even if that costs future taxpayers tens or hundreds of millions of additional dollars. Tough luck for them, I guess....
Go to www.ActonForum.com to continue: http://www.actonforum.com/blogs/allenn/why-doesnt-acton-want-save-money-opeb