Are big public employee pensions to blame for city budget woes? Contra Costa Supervisor John Gioia (District I) appeared in a local ABC-7 news story on this critical topic concerning the massive budget deficits facing the county and municipalities throughout California.
Gioia points out that in 2002, the county spent $70 million on pensions, this year $200 million, and in 5 years will spend $300 million. Kris Hunt of the Contra Costa Taxpayers Association notes the County delinquency in not setting aside monies for retiree health benefits.
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When the county and cities gave out 3% @ 50, they should have stipulated that it would only apply to years going forward and not ‘retroactive’ to years where no additional money had been put into the 1937 Act and CalPers retirement funds.
So the answer is: Yes! Big pensions are to blame for city budget woes (amongst many other contributing factors).