FIRST, THERE was the energy crisis that cost California billions. Then came the sinking economy that drained the public treasury.

"I won't be the least bit surprised is the next thing is the pension crisis, " said John Russo, Oakland's city attorney and president of the League of California Cities.

He and other local leaders are stuck with huge bills left by boom-era pension decisions. Already the cracks are showing as counties examine the costs and politics of the once-sleepy world of retirement pay.

By approving hefty pension increases for state workers in 1999, Sacramento unleashed an almost unstoppable wave of matching moves by cities and counties. Though the Legislature and Gov. Gray Davis said the changes involved only the 1.3 million enrolled in the California Public Employees Retirement System, the pressure for higher payouts resulted in local governments falling in line.

Here's a sample. Under the old rules, a state game warden could collect 2 percent of present wages multiplied by the numbers of years worked. At age 55, the warden could put this math to work to compute a retirement pension.

But the new rules raised the key multiplier to 3 percent, a 50 percent increase. Also, depending on the job category, this mechanism could be used at age 50, meaning a higher pension at an earlier age.

Public safety workers normally receive deluxe pension treatment because of their dangerous jobs and a belief that older, less fit employees should make way for younger, more athletic recruits.

But building on the surge in pension investments, police and firefighter unions used their political skills and a favorable post-Sept. 11 image to wrest further benefits.

In San Francisco, which runs its own pension plan, fire and police unions pushed a ballot measure last year that brought retirement rates in line with higher state levels. The cost: $28 million this year.

In Contra Costa County, the toll is far steeper. Higher benefits approved by county supervisors could hamstring the county for years. Its retirement assets may be $487 million short of obligations over next 20 years. One example of the problem: after 30 years of work, a police officer or firefighter is entitled to a 100 percent pension.

In April, Contra Costa sold $319 million worth of pension obligation bonds, essentially borrowing to pay retirement bills. "Every other county is thinking about doing the same thing," said Patricia Wiegert, administrator of the county retirement system.