Taxpayers aren't prisoners, so there is some maximum rate you can get out of people before they start leaving. I doubt it's the case, but there is a non-zero chance that paying all their obligations are actually impossible.
It's interesting enforcing contracts when my local government can sign a contract that we'll pay pensions for the next 40 years in exchange for a service now (say education), but I can move away after consuming it (or simply never become productive and pay taxes).
Yes, the taxpayers can leave. But on the other side are the people providing the service with whom the government has made these contracts.
Some people took these positions based on the deferred compensation. If that goes away, there will need to be upfront compensation. If neither of those happen you won't find many qualified people willing to take those jobs. Both sides will get screwed.
