Voters are starting to see the stark reality of growing public employee pensions, even if local officials aren’t willing to address the elephant in the room.
CALMatters’ Dan Walters details the growing crisis:
California’s political leaders don’t have to look very far to find a stark example of the pension cost crisis facing the state’s 482 cities.
Three blocks from the Capitol, in Sacramento’s city hall, Mayor Darrell Steinberg – a former leader of the state Senate – and other officials are seeing pension costs skyrocket.
Sacramento, like many cities, has had to make major adjustments to tackle its growing pension liability. The capital city is looking to a tax hike to aid its pension liability. Says Walters:
By 2024, CalPERS projects, Sacramento will be paying 61 cents into the pension fund for every dollar of police and fire salaries, up from 43 cents in 2018-19. For non-safety “miscellaneous” employees, payments will rise from 19 cents per $1 of payroll to nearly 28 cents.
Of course, rising pension costs aren’t being mentioned as a reason why the city may be asking its voters to pay more taxes.