Change in CALPERS policy makes pension debts skyrocket; where does Humboldt stand?

This article on how Sonoma County’s pension debt exploded from $20 million in 2000 to $113 million last year appeared in the Press-Democrat last week. Check it:

PD Editorial: CalPERS gets real, but cities pay the price

Notably, the article details how CalPERS has shifted their accounting policy to bring the projections for their pension funds more in line with reality. Of course, that means that the amount of pension debt has risen for all municipalities that participate in CalPERS.

And, as you might have guessed, “The bad news is the bill for this recalibration of thinking is going to be handed primarily to taxpayers — once again.”

Want some even more good news? According to Fred Mangel’s blog, California is set to become the state with the worst pension debt by 2018. Woo hoo! Always nice to be on top, right?

Lastly, the Press-Democrat article predicts that California’s payments to CalPERS will rise by over $2 billion dollars over the next eight years. The article goes on to say that “To put that in perspective, it’s equal to all of the money that Proposition 56 ($2 cigarette tax) and Proposition 64 (legalization of marijuana) are expected to bring in to the state in added tax revenue.”

Ouch.

Kudos to Fred’s Humboldt Blog for first picking this one up!

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2 Responses to Change in CALPERS policy makes pension debts skyrocket; where does Humboldt stand?

  1. Shak says:

    The Brown is so stoked about all this he gave himself & the legislators a 4% raise shortly before they cut the rural CalPers benefits from 47 thou to 24 thou. The gas by the mile tax will drive the rest into the cities, leaving the spoils of resourse harvests to the foreign banks they owe money to. The city dwellers are happy for that pay by the mile tax, because they think it gets them a free transit ride. Little do they realize the bus fares will increase, to make up the difference for road maintenance, but they are too smug to realize that a car less future is what the tax money is being spent on. Over a half trillion is slated for bicycle lanes and pedestrian walking trails just for san diego counties alone.
    All for our own good of course. Exercised with brute force.

    Like

  2. Dusty says:

    Switch to a 401k program and pay out all equity earned to date for years served? How would you solve it?

    Like

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