New Study. Pensions in Property Tax Reliant States Better. Here's why.

The study:  State and Local Government Review by The University of Texas at Dallas researchers

Why are pensions in cities that rely on property taxes better funded?

• Higher contribution rates. tend to contribute more to their pension systems
• State funded local pension funding declines. cities that rely on state aid for the pension systems have lower contribution rates
• Reliable revenue source. property taxes are more reliable & weather fiscal stress

“Overall, the study reports that every 1 percentage-point increase in reliance on property taxes as a share of own-source revenues corresponds with a $3.22-per-capita drop in unfunded pension liabilities.”

Governing | What Cities’ Revenue-Raising Methods Say About Their Pension Funding