Is TriMet Better Off Than Greece?

CascadeNewLogoBy John A. Charles, Jr.

Syndicated financial writer Malcolm Berko recently advised a small investor to stay away from Greek bonds or securities. He wrote, “Greece has morphed into a bureaucratic five-star welfare state; but in reality, Greece is a one-star economy. The pensions and entitlements consume 52 percent of government income.”

Well, TriMet’s most recent audited financial statement was released in September, and last year TriMet’s “income” – money earned from customers buying rides, advertising, or services – totaled $153.4 million. The cost of fringe benefits such as pensions and health insurance equaled $166.8 million, or 109% of income.

But the actual problem at TriMet is far worse, because most of the obligations for pensions and other benefits don’t show up as current-year expenses. They appear in financial statements as accrued liabilities that have to be paid off sometime in the future.

Taking into account all liabilities for fringe benefits, TriMet has $711 million in health care obligations, $18 million in pension liabilities for management, and $159 million in pension costs for the union. This sums to $888 million in actuarial accrued unfunded liabilities, or 579% of operating income.

Greece is an international financial disaster; but compared with TriMet, it’s a model of fiscal restraint.

John A. Charles, Jr. is President and CEO at Cascade Policy Institute, Oregon’s free market public policy research organization.

Post to Twitter Post to Facebook Post to LinkedIn Post to Reddit

Posted by at 05:00 | Posted in Local Taxes, Oregon Government, Portland, Portland Politics, Public Transportation, State Government, State Taxes, Taxes, Transparency, TriMet, Unions | Tagged , , , | 6 Comments |Email This Post Email This Post |Print This Post Print This Post

Stay Tuned...

Stay up to date with the latest political news and commentary from Oregon Catalyst through daily email updates:

Prefer another subscription option? Subscribe to our RSS Feed, become a fan on Facebook, or follow us on Twitter.

Twitter Facebook

No Thanks (close this box)