(Bloomberg) — Cities from San Diego to Jacksonville, Florida, want to rebuild police forces thinned by the recession as they mend frayed community ties that snapped entirely in Missouri, setting off riots and nationwide demonstrations.
Their obligations to retirees stand in the way.
The shortfalls in the 25 largest state and local-government pensions have tripled over the past decade to more than $2 trillion, according to Moody's Investors Service. Those gaps, which persist even as the stock market reaches record highs, have mayors scrapping plans to increase patrols and reopen precincts as they spend more on retirement instead.
In cities that cut benefits, officers have quit or retired, underscoring the challenge of balancing the promises of the past with the duties of the present.
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