Butte County Pension Obligation Bond Strategy? The pension deficit has grown by over $28 million under their “strategy” What next – bankruptcy?

Last week I posted the “Butte County Pension-Obligation-Bond-Payment-Strategy-Summary” You may recall, the county signed onto two pension obligation bonds in 2004 with the specific purpose of using debt to pay debt – like taking out a new credit card to pay your old credit card. County staff and supervisors told us they would make enough money off these bonds to both pay the debt service on the bonds AND make larger payments toward the pension deficit. They told us they would save money because the bond rate was lower than the rate CalPERS is charging us for the pension deficit.

But you see here

https://chicotaxpayers.com/2024/10/24/whats-the-real-reasoning-behind-butte-county-measure-h-a-billion-dollar-budget-with-57-million-year-in-pension-bond-payments-projected-by-2030/

that since they instituted the POB, the pension deficit has ROCKETED. “In June 2024, the Chico Enterprise-Record reported that Butte County’s pension deficit was growing and that the budgeted payment for the year was about $18 million. The deficit grew by $28 million over the 2021-22 period.”

Grew $28 million? That’s their plan? Wow, that’s some “strategizing” they’re doing over in O-ville.

How did that happen? Ask your county supervisor why they raise their own salaries every year. And read this again –