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O-ville talking bankruptcy? Time for public employees to take a walk in “the real world”

30 Sep

Thanks again Dude, for this link – I’ve been too busy to read the papers lately, get a load of this story from the Oroville Mercury Register – Oroville going bankrupt?

http://www.orovillemr.com/article/NB/20170927/NEWS/170929752

“The city’s finance director Ruth Wright told the California Public Employees’ Retirement System (CalPERS) finance and administration committee last week that the word “bankruptcy” was being thrown around, though not at council meetings.”

Not at council meetings? Council still in denial? Well, here in Chico, we have a $186 million deficit, and council is fully aware. So they handed out raises to top management! Now that’s a plan!

“The city [Oroville] cut down its $1 million deficit to achieve a balanced budget this year but is not exactly thriving financially, operating with low staffing levels and recently negotiating a 10 percent pay cut for police, with more negotiations to come.”

A 10 percent pay cut for police? You could expect Chico PD to walk out on any such negotiations – they threaten to cut service – which is essentially a STRIKE – if they don’t get raises.

Oroville’s finance director Ruth Wright says CalPERS is the problem and CalPERS needs to fix it.

“’All cities and counties cannot keep up with the increases,’ she said. ‘I think it’s up to them (CalPERS). They need to do something. They need to do a better job investing.’ The organization announced in December that discount rates would drop from 7.5 to 7 percent over the next three years in an effort to make the fund more stable, but with impacts to state and local governments.

“’CalPERS has a few levers to pull in dealing with pensions, having to do with discount rates,” said Wayne Davis, head of public affairs for the pension fund. “We’re very much aware of what lowering the discount rate means.’”

Well,  “we all” don’t know what he’s talking about – “lowering the discount rate…”

From CalPERS – straight from the horse’s ass –

https://www.calpers.ca.gov/page/newsroom/calpers-news/2016/calpers-lower-dis

“Lowering the discount rate, also known as the assumed rate of return, means employers that contract with CalPERS to administer their pension plans will see increases in their normal costs and unfunded actuarial liabilities. Active members hired after January 1, 2013, under the Public Employees’ Pension Reform Act will also see their contribution rates rise. Normal cost is the cost of pension benefits for one year.”

Remember, I asked Chico Unified School District finance chief Kevin Bultema about this, right after the passage of Measure K in last November’s election, and he said the district would need to find more funding to pay pension costs or cut programs for the kids.

So, of course, this means a bigger deficit for Oroville, and don’t forget Chico.

“Oroville’s finance director said the number of city representatives coming to confront CalPERS has been growing. At the meeting last week, officials from cities such as Chico, Santa Rosa, Laguna Hills, Lodi, West Sacramento, Vallejo, Yuba City, Hayward, Manteca and Concord were there. A legislative representative for the League of California Cities also participated.”

Well, that’s funny – this hasn’t come up in the Chico paper, which is edited by the same David Little that edits the Mercury Register. Neither have we talked as a town about the $186 million deficit, or the $500,000/year “side payments” (in addition to the regular premium payments), which will balloon to over $1.5 million/year within the next three years.

And the sky is the limit, since our elected morons – both Chico and Butte County – keep giving out raises as though everything’s just rainbows and lollipops. They’ve acknowledged the mess we’re in – because they want us to pay more taxes.

The reporter finally talked to Chico finance mangler Scott Dowell – formerly with Chico Area Recreation District, which has a $1.7 million deficit for less than 35 employees. Dowell doesn’t think Chico will go into bankruptcy, but has been trying to work with CalPERS.

“Dowell was hoping the pension fund representatives would do some research on the possibility of freezing cost-of-living adjustments, meaning retirees would receive a flat rate every year. They would no longer receive additional money — currently up to 2 percent of their annual salaries — to account for changing inflation.

The other concept was switching all employees onto the same kind of pension plan as employees who started after Jan. 1, 2013. The Public Employees’ Pension Reform Act went into effect then, offering fewer benefits to new employees. That could mean the difference between retiring at 55 and 62, Dowell said.”

Both no-brainers as far as I’m concerned, and “the way it works in the real world”.

 

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Chico Unified: we want more money or we hurt the kids…

8 Feb

A couple of weeks ago we read an article in the Sacramento Bee detailing the failure of the California State Teachers Retirement Fund – CalSTRS. Here’s the latest from Cal Watchdog:

http://calwatchdog.com/2017/02/03/pension-funding-catastrophe-threatens-california-schools/

Yes, as Chico Unified School District finance director Kevin Bultema told me, ” The increase PERS and STRS costs are certainly a challenge for the district’s operations budget and will need to be addressed with either increased revenues from the state or cuts in CUSD’s program expenditures in the future.”

I hear “we want more money or we’ll hurt the kids…” What do you hear? 

No, Measure K was not “about the kids”

1 Feb

I forwarded the article from the Sacramento Bee that I posted here yesterday

http://www.sacbee.com/news/business/article128942009.html

to Chico Unified School District Finance Director Kevin Bultema, asking how the failure of California Teachers Retirement System would affect our school district. He responded,

Good afternoon Ms. Sumner,

This has been one of the key budget issues facing CUSD.  The recent downward adjustments in CalSTRS estimated investment earnings is adding additional pressure to employer contribution rates in future years.  Employees did have a small increase in their contribution rate in 2015-16 from 10% to 10.25%.  The employer contribution rate has increased since 2015-16 and is projected to increase each year through 2020-21.  We discuss the financial impact of the projected PERS and STRS rates at every budget presentation.  Below is a slide we include in all of our budget presentations to keep our board and the community informed of this issue.  I hope this helps answer your question.  Have a great evening. 

Bultema ran the Measure K campaign, but gee Beav, none of this stuff came up in his Argument For, nor in the rebuttal to my argument, where he and Mark Sorensen chastised me for not getting it. 

Maureen Kirk told me she was supporting Measure K because “The more I looked into it, I came to the conclusion that the schools really need our help and support. This does not support retirement and benefits and directly helps the students.”

I wrote to Kirk and Sorensen and chastised them for their support of Measure K, forwarding Bultema’s e-mail with the link to the Sac Bee. I hope you will do same:

mkirk@buttecounty.net

mark.sorensen@chicoca.gov

The rebuttal to my argument against Measure K claimed I didn’t “get it.” Well, do you get it now Mark?  Here Kevin Bultema admits, CalSTRS has been failing, but nobody mentioned that during the Measure K campaign.  It’s all about the kids, huh Maureen?  Just in case you don’t read The Bee, I included a link to the article I had referenced to Bultema, although I know Mark already knows exactly what’s going on.  Sincerely disgusted, Juanita

Kirk and Sorensen are both up in 2018.  Where can we find suitable replacements? 

Meanwhile, another thing to remember, Chico Area Recreation District has hired the same consultant to run their bond/assessment campaign, so be ready for LIES LIES LIES.

Thank a Teacher! California taxpayers will pay $153 million more a year for school district pensions

30 Jan

Thanks Bob for this article from the Sacramento Bee.

“CalSTRS will consider lowering its official investment forecast in a move expected to require higher contributions from state taxpayers once again for the teachers’ pension fund. The cost to the state could be an additional $153 million starting with the next fiscal year.”

 

I didn’t know this was legal:

Three years ago, the Legislature agreed to raise contributions to CalSTRS by billions of dollars a year. Assembly Bill 1469 affected the state, local school districts and teachers themselves. For example, the annual contributions from school districts is growing from $2 billion to $6 billion, although the increases are being phased in over several years.

The 2014 law does give CalSTRS some latitude to impose higher rates on state taxpayers without going back to the Legislature for permission. According to the staff report, Gov. Jerry Brown’s budget proposal for the new fiscal year includes an additional $153 million for CalSTRS, bringing the annual contribution to $2.8 billion.

No matter what Chico Unified said about crumbling classrooms, rot, mold, asbestos, old computers – it’s the pensions folks, it always has been.

Cut the pensions

3 Jan

Thanks Rob, for this link to yesterday’s Dan Walter’s column.

Walters opines, “If it’s not economically or politically possible to finance the pension promises made to state and local government employees, the system’s only hope for solvency may lie in reducing those promises.”

Read more here: http://www.sacbee.com/news/politics-government/politics-columns-blogs/dan-walters/article123886739.html#storylink=cpy

We must ask ourselves, who made these promises in the first place?

  • Jerry Brown – with contributions of $50,000 – 100,000 from just about every employee’s union in the state of California  (   https://votesmart.org/candidate/campaign-finance/69557/jerry-brown-jr#.WGu0MvkrKUk   )
  • Third District Butte County Supervisor Maureen Kirk.    As a council member Kirk signed the “Memo of Understanding” that attached city employee salaries to “increases in revenues but not decreases…”   She also signed one contract after another requiring the city to pick up the lion’s share of city employee benefit expenses –  not only the much larger “employer share” of pensions and benefits but all or most of the “employee share” – the “employer paid member contribution”. For years under Mayor Kirk “public safety employees” paid nothing toward their own pensions, while management employees were allowed to get away with 4 percent. Now she rubber stamps raises for the county, as well as anything the Behavioral Health Department wants.
  • Second District Supervisor Larry Wahl – Wahl signed on to all of the above as a council member and added a step-increase system for the police department that essentially means automatic promotions and raises. As supervisor Wahl has voted to fully fund every request made by the Behavioral Health Department.
  • Don’t look now, but your former and current mayor are public employees who collect their own pensions. Don’t expect either Mark Sorensen or Sean Morgan to turn down any raises or require higher contributions, especially for cops or fire. They’ll dump lower level employees to feather the public safety nest, which is why our streets are shredded and our park is a disgrace.
  • Your vice mayor is a former employee of CalPERS. When we asked Reanette Fillmer during her 2014 campaign if she is eligible for a public pension, she said she didn’t know.  Don’t expect a straight answer about anything from that little minx. 

Do you feel responsible for these pensions? Do you get a pension? If so, who pays for it? 

Our public employees are like junkies – they’re high on ENTITLEMENT, the notion that they are better than us because they are a member of the racket, and we aren’t. They are high on the notion that we will foot the bill for their ridiculous lifestyle.

Remember what Nancy Reagan told you – JUST SAY NO!

 

This year, state employee pensions will cost taxpayers $5.4 billion, according to the California Department of Finance

23 Dec

Bob sent this link, a must read for those of you who  don’t understand “The Pension Bomb”.

http://www.latimes.com/projects/la-me-pension-crisis-davis-deal/

As Jack Dolan reports, “It was a deal that wasn’t supposed to cost taxpayers an extra dime. Now the state’s annual tab is in the billions, and the cost keeps climbing.”

“This year, state employee pensions will cost taxpayers $5.4 billion, according to the Department of Finance. That’s more than the state will spend on environmental protection, fighting wildfires and the emergency response to the drought combined.”

Agencies like CARD and Chico Unified School District make promises to build new facilities and replace mold, rot and asbestos, upgrade to the 1990 Americans with Disabilities Act, but this is what they really want the money for.

 

Chico Unified lost the lawsuit and was ordered to make the e-mails public – but now the link doesn’t work? What is Chico Unified trying to hide?

13 Dec

Here’s a story from Chico Enterprise Record regarding the lawsuit Chico Unified pressed against Chico State last year:

http://www.chicoer.com/article/NA/20150929/NEWS/150929702#disqus_thread

Most of the details are there, and a link is included so that the public can view the e-mails that were the subject of the lawsuit – unfortunately the link doesn’t work.  

Look at the comments below – at one point lawyer Paul Boylan says the district removed the link. Olson responds to him that a new link has been provided. Geez, that link doesn’t work either!

I sent an e-mail to ER staffer Ryan Olson, we’ll see if he can help us out.

Looks like the school district is still trying to hide something.