Perspective
Dec. 5, 2011
Governments must keep contract promises
Governments cannot solve their budget problems by repudiating contracts with their employees. By Catherine Fisk of UC Irvine, School of Law
Last Monday's ruling by the state Supreme Court against Orange County's attempt to exclude retired workers from the county's health insurance risk pool reveals that the county was attempting to do something that may have been both unconstitutional and unwise. The Court held counties are bound by their pay and benefits promises to their employees and thus cannot reduce budget deficits by reneging on contracts. The decision is a remin...
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