On January 29th, Richard and Joe interviewed Dan McAllister, San Diego County’s Treasurer.

Maureen Cavanaugh from KPBS interviewed Dan McAllister on February 20th, and she explored some of the same controversial financial themes we did on our show. For the transcript of Ms. Cavanaugh’s interview, click here. We found this excerpt interesting:

CAVANAUGH: I’d like to go off topic for just a minute.

MCALLISTER: Sure.

CAVANAUGH: You sit on the San Diego County pension board which just this month obtained a AAA rating from standard and poors. And it retained that rating for its ability to pay retirement before for county workers. You were recently quoted talking about San Diego’s pension debate and dilemma, and you mentioned the San Diego pension initiative, which is supposed to be on the June ballot. We’ve been talking a great deal that there’s a lawsuit being filed. You called the initiative a panacea. Can you tell us about that?

MCALLISTER: I harken back to our earlier conversation, and that is buyer beware. I think people need to study this initiative very carefully and closely to make sure they know what they’re get figure they vote for it. I think we have been around long enough to know that there is no true panacea in government or society today that doesn’t come without a price. If you stop to think about it for instance, just because this initiative passes, does not mean all the fortunes of the city instantly financially turn around. There are still retirees in the system, there are current employees as of today in the system, and all of their pensions need to be made good bye the time they die. That means that the city is going to have to pony up millions of dollars every year to meet its annual required contribution to those funds. So just because this initiative passes does not negate that from happening. I would say that people need to be aware that those costs are going to continue. And if they start a new plan, that’s going to have to encounter costs as well. CAVANAUGH: And you also pointed out that San Diego City employees have already the option of a 401K plan which is central to this comprehensive pension reform.

MCALLISTER: That’s correct. In fact, since 1984 — the City of San Diego has had a 401K plan in place since 1984. They also have had a deferred comp plan, which is a defined contribution plan just like the 401K, only primarily for government employees. In addition to the defined benefit plan which is measure is all about.

CAVANAUGH: Is there anything the city can learn from the way the county handles its pension?

MCALLISTER: I think that it’s wrong to gang up on any entity and say you guys should just listen to us and you’ll see the way. This is the way to the mountain top and we have all the great slates and tablets ready to hand down. I don’t think that’s the case at all. Good, logical, sound governance, when it comes from finances, prudence, are elements that can go on anywhere. And there’s no magic or monopoly on those. It just so happens that the county has managed its assets well. It has made good investments. It stays out of difficulty when it comes to overextending and overpromising on costs and expenditures. And that’s not always true in governments. The state is a good example of that.