Atlanta Mayor Kasim Reed is to be commended for taking one of the bold steps needed to keep the city from falling into the abyss, financially speaking.

Accrued but unfunded liabilities, primarily pension benefits, are the figurative cement shoes on the feet of cities, counties and states across the nation. Basically, accrued and unfunded liabilities are the retirement benefits that have been promised to government employees, but for which money has not been set aside to pay them. In Gwinnett, accrued liabilities exceed $300 million.

Gwinnett County has essentially done what Reed proposes to do, although I do not know how deep Gwinnett cut into benefits being accrued by current employees. In December 2009, Finance Director Aaron Bovos floated the idea of paying the revenue from the 2.28-mill tax increase, expected to be almost $60 million, toward the county’s future obligation. The county paved the way for such a move by moving most of the expenditures for the which the tax hike was supposed to be used from the 2009 budget into the 2010 budget.

Members of the Engage Gwinnett committee, of which I was a member and whose report to the Commission we just approved today, generally opposed the county’s plan; instead, wanting the money to be spent on what it was promised to be spent—core services including 58 police officers and the opening of three finished but vacant fire stations.

Officials in Atlanta Mayor Kasim Reed’s administration told the City Council on Friday morning that they are preparing legislation to dramatically reduce pension benefits for city employees to the level of benefits a decade ago. The move would save  millions for the city but is expected to set off an alarm among city workers.

Reed seeks massive rollback of city pension benefits  | ajc.com