Dallas’s mayor, Michael S. Rawlings, testified earlier this month to a state oversight board that his city appeared to be “walking into the fan blades” of municipal bankruptcy, the New York Times reported today. Though Dallas has the fastest economic growth of the nation’s 13 largest cities, its pension fund for its police officers and firefighters is near collapse and seeking an immense bailout. Over six recent weeks, panicked Dallas retirees have pulled $220 million out of the fund. What set off the run was a recommendation in July that the retirees no longer be allowed to take out big blocks of money. Even before that, though, there were reports that the fund’s investments — some placed in highly risky and speculative ventures — were worth less than previously stated. Now, the Dallas Police and Fire Pension System has asked the city for a one-time infusion of $1.1 billion, an amount roughly equal to Dallas's entire general fund budget but not even close to what the pension fund needs to be fully funded. Nothing would be left for fighting endemic poverty south of the Trinity River, for public libraries, or for giving current police officers and firefighters a raise.
