Expert outlook: Post-employment benefits “a luxury that BART can no longer afford”

The Cato Institute's policy analyst Marc Joffe is a self-avowed transit advocate who has often used BART and “really want[s] it to succeed” (0:51–0:53). But the Bay's rapid transportation system requires more than wishful thinking—or mindless spending—to surpass 2019 ridership levels. During a 6.13 Walnut Creek presentation, Joffe suggested several fiscal reform strategies, including eliminating superfluous post-employment benefits like healthcare coverage.

Right now, BART's spending about $30 million a year on other post-employment benefits, which are mainly retirement health benefits. As many of you who are involved in the Taxpayers Association know, [the Cato Institute's] pension team worked on this issue, and we pointed out that most people who are retiring on a moderate pension would qualify for the Covered California, what's called the Obamacare exchange. So it's not like we're saying, “Hey, BART employee, when you retire at 55 or 56 or 57, you're not going to get any help at all with your health coverage.” But you should be using the same programs that the general public uses. And I think if you're in the private sector, it's really, really unusual to get employee retiree health coverage.

So this is, I think, a luxury that BART can no longer afford. Unlike pensions, it's not legally protected by the California Rule, and honestly, I really think this needs to be on the chopping block.

(7:55–9:00)

Watch the whole thing here.

Read more from Marc Joffe on disastrous local BART extensions here, here, and here.

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