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