CPR: The Sacramento City Council vote to place a tax increase on the November ballot is representative of what we’ll see around the state in many localities: a call for more taxes to maintain basic services when in reality the money is needed to meet pension obligations.
In one sense the argument that the money is needed to maintain services is correct. Because greater pension costs will eat into the general funds of local governments, services provided by government will be cut because of reduced revenue. The problem is that officials promoting the tax won’t talk about pensions.
What’s needed is transparency.
In Sacramento, the city council placed a 1-cent sales tax on the ballot to offset a ½-cent tax that is soon to expire. The new tax will be permanent. The tax is projected to raise $100 million, twice what the temporary tax now brings in. The new money is purportedly for specific projects but money is fungible and can be used where the city needs it—and the city needs to deal with rising pension costs.
(UPDATE: The current tax take from the 1/2-cent tax is actually $36 million. The $50 figure came about because of carryover money from previous year. A full penny is about $72 million. Thanks to Dan Walters at CALmatters for the correct information.)
The city budget speaks of the long-term difficulty Sacramento faces dealing with pension obligations. “The pension cost (normal cost and unfunded liability combined) in the General Fund alone is projected to be $134 million in FY2024/25 when the rate change is completely phased in. This reflects an increase of more than $66.9 million over the eight years which is a 99.6% cost increase from FY2017/18 to FY2024/25.” more
Lazlo has a pal about to retire from LAPD at 90%
Now, my buddy EARNED his pension. He held up his end.
I am glad for him. Glad he is set for life and has a comfortable retirement.
But Damn! 90%?
Whoever runs the department that decides these things should be shot.
It would be easier to pay them twice what they’re getting now
Public employee unions promise votes to politicians, in return politicians look the other way as new contracts get negotiated with ever increasing wages, benefits, and pensions. Public employees in return continue voting for the same criminal politicians. Works real well until someone runs out of money.
They all need to move to 401ks and abolish pensions beyond what has already been earned.
They won’t, but that’s what they need to do.
L.A. County had a ballot item last time for a 1/2% sales tax ‘to help the homeless.’ BS – it’s always about pensions and the governing body’s inability to be careful with its limited financial resources.
Sacramento sanctuary city, amazing, mind blowing. Only represented by those interested in lining their own pockets by non-citizens. Basic service costs would drop by 50% if they would ENFORCE the laws already in place. The longer you “host” a non-citizen, the lower the costs. However that common sense is worth less compared to a false vote to get your greedy self elected.
A little dated, but still good:
https://www.youtube.com/watch?v=5Qt_0r7okXk
Meant higher the costs, duh me. Proof not to cut the lawn when it’s a 104 outside or make comments after unless your a liberal and all misspoken things are real.
At least they put it on the ballot so the Serfs could vote for it. If it doesn’t pass, they’l find some way around it.
I’ve been saying for years… They got rid of Gray Davis… But they didn’t get rid of the damage he did. The pensions were a mess before him, but he put the state on the path of financial suicide.
outrageous pensions for folks who were hired because of their skin color and work 30 minutes a day….and we wonder….
I’m sure I misread this. It sounds like CPR is saying that the PRess lies!
Next thing ya know we will have a smart, brave, honest President saying “FAKE NEWS!”!
Wkly Stndrd is right – America is going to Hell!