Michael McDaniel Dec 2008
Sutter County was one of the first "local" communities to acknowledge the unfunded liability crisis at the proverbial door. Pat Miller reports (HERE) "In just six years, from June 2001 to June 2007, Sutter County went from
$28.8 million in the black to $44.8 million in the red — a minus $73.6
million. The increase in costs can be attributed to two factors: 1)
decreases in CalPERS investment returns and 2) the 2004 formula
increase from 2 percent at 55 to 2.7 percent at 55 passed by the Sutter
County Board of Supervisors without a financial analysis and without
public discussion."
The same 2 factors have crushed the health of the Grass Valley's financial position. Local Communities across the country could learn from the Sutter County Taxpayers Association suggestions (below):
"Sutter County Taxpayers Association recommends:
1. Change the formula for new employees to 2 percent at age 60+ or aligned with Social Security retirement.
2.
Base retirement pay on the more typical three-year average instead of
the current last year salary. People are living longer, are healthier
and many routinely choose to work into their 70s.
3. Have
employees pay their 8 percent or 9 percent share. State employees pay a
share into their retirement accounts, the vast majority of the private
sector pay into their own retirement; county employees should too.
4.
Require a vote of the people for any county pension increases. Orange
County voters just passed a local measure with a 75 percent majority to
require that any increase in county pensions first has to have an
actuarial report of expected future costs and be approved by the
voters.
Please contact your county supervisors and urge them to
act now to address the problem before the county ends up cutting
essential services to pay these padded pensions that are absolutely
unheard of in the private sector, and that drain the pocketbooks of
Sutter's citizens."
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