Is the City of Dallas Nearing Bankruptcy?
Dallas seems to be booming, yet rumors are spreading that the city might be close to filing for bankruptcy. The New York Times reports that despite Dallas having the “fastest economic growth of the nation’s 13 largest cities,” the “pension fund for its police officers and firefighters is near collapse and seeking an immense bailout.”
Recently, people starting pulling their money out of the pension fund ($220 million worth) when it was suggested that they might not be able to pull big amounts out in the future. This combined with miscalculations when it came to risky investments has drained the fund.
Now, the Dallas Police and Fire Pension System is asking for $1.1 billion for funding, even though that still won’t be enough. Despite all of this turmoil, Dallas Mayor Mike Rawlings maintains that he believes the city won’t be filing for bankruptcy. But he admits that big assumptions and a flawed got them to this place.
Rawlings went on to tell KUT, “Already, our bond ratings are down. It’s costing taxpayers more money and obviously, it would change the lives of thousands of people at the city level. This is a serious issue that we are walking towards if we don’t take action now.”