At about 1:30 this morning I was awakened by a ping from my husband’s cell phone. It’s startling – the damned thing vibrates across the window sill above our bed, zzzzzzzzz! I always think, it’s one of our kids, that wakes me up fast.
No, it’s SPAM from Chico Engaged!
I’ve been busy with a lot of stuff, but like I promised, I wrote a letter to the ER about Robert Koyasaki’s “Pension Time Bomb” series. I’m embarrassed – I mis-spelled Siedle through the entire post, I have to go back and fix that, sorry. But I think I got a good letter out of it – you tell me.
Cities across America, like Chico, are unable to provide basic services because all the money is going to pay for pensions. No matter how much money the taxpayers pour into this system, pension expense will continue to outstrip revenues.
Salaries are excessive. Chico city management positions pay four to five times the median income.
The city pays too little, with employees contributing even less. Until the Public Employee Pension Reform Act of 2013, management employees paid nothing toward their pensions. Now they pay between 10 and 15% of total cost, the total payment being 20 – 30%.
Pension deficit is created by agencies and employees that don’t pay enough on payroll. The excess becomes the Unfunded Actuarial Liability. Employees contribute nothing toward the UAL, which is over 65% of total employee cost. The California Rule mandates that the pension deficit must be paid ahead of everything else. For example, our finance director says we have no money to fix streets, but in July he will make the annual $9 million (and growing) payment toward the UAL.
A tax measure would be spit on the griddle in this situation. Here are my suggestions:
Juanita Sumner, Chico CA
Listening to Robert Koyasaki’s Pension Time Bomb radio show made me so mad I had to take a break. But I finally finished the discussion between Koyasaki, a real estate investor, economist Edward Seidle, and Phoenix Arizona city council member Sal DiCiccio.
DiCiccio explained that cities across America are unable to provide basic services because staffers are pouring all the taxpayers’ money into their own pensions. Because of excessive salaries, ridiculously low contribution rates, and horrific mismanagement of pension funds, the pension deficit, or Unfunded Accrued Liablity, ” will continue to climb. No matter how much money the taxpayers pour into this system, pension expense will continue to outstrip revenues.
First of all salaries excessive – our city manager, for example, at $207,000/year in salary, makes almost 5 times the median income in our area. Many economics experts, including Seidle, have said that if the salaries were more rational, the pension system would work.
Second, agencies pay too little, with employees contributing almost nothing. In fact, until Orme started paying in a few years ago, he was paying NOTHING. His predecessors, like Tom Lando, Greg Jones, Dave Burkland, and Brian Nakamura, paid nothing. Lando is now getting over $155,000/year in pension, plus COLA, having made absolutely no contribution for his entire career.
These agencies have used CalPERS like a credit card, and now they want us to pay. First of all, the agency doesn’t pay enough in total. As of now, the city of Chico is paying, depending on the employee group, between 20 and 30% of total payroll cost, with employees, also depending on bargaining group, paying between 9.75 and 15%. Finance mangler Scott Dowell said in his power point presentation that “City of Chico employees are paying, or are nearly paying, HALF of the CalPERS pension costs.” That is one of the Big Lies. See, he forgets to mention, the Unfunded Actuarial Liablity, or “pension deficit”, which is over 65% of total cost, and the taxpayers pick up that whole tab, with interest.
That UAL is created by agencies that don’t pay enough on payroll, and don’t require enough of their employees. The money they don’t demand becomes the pension deficit, and then the employees are off the hook to pay it. They contribute NOTHING toward the pension deficit, or UAL, payments, the taxpayers are stuck with the whole turd.
And then there’s mismanagement of funds. CalPERS is our pension system. They have been criticized for promising too high a return from the stock market, especially since they make horrible investments. They tell their member agencies they only have to pay so much, and then when their investments tank, they come banging on the door for more.
DiCiccio and Seidle explain that no agency requires any member of their pension boards to have any financial credentials or education – the boards are made up of union members. These people are completely dependent on Wall Street money managers.
DiCiccio says, “The wall street money managers are screwing everybody,” from the taxpayers to the employees. He gives an example, which is verified by Seidle – one Phoenix employee group paid $40 million to their money manager for a $4 million return on their investments. Seidle adds, “In the last 10 years the fees have grown exponentially because they are doing high cost high risk investments, which have much higher fees.” And there he also mentions the high risk investments – in one case, CalPERS board members were caught buying bad stocks off of friends.
https://www.breitbart.com/local/2016/06/03/former-calpers-ceo-sentenced-4-years-taking-huge-bribes/
So, what can we do? Unfortunately, we can’t just stop paying our taxes, that’s not going to go anywhere. Also unfortunate – most states, including California, have passed legislation that protects the pensions of those members hired before 2013. “The California Rule,” passed by the state legislature behind closed doors, says, in fact – we must pay the pensions before we pay for anything else.
Last night, watching Chico City Council’s latest remote meeting, I saw it right in front of my eyes. It was in the report Dowell made to council at last night’s remote meeting. He showed council that list of services that $taff plans to cut. One cut that was taken off the list since he made the same presentation at last week’s Finance Committee meeting was deferring payment of the annual Unfunded Actuarial Liability. That is an annual payment, the penalty for missing it would be about $355,000 in late fees. But last night Dowell said there was plenty of money to make that payment in the General Fund – $9 million. That’s just this years payment, up about $1 million from the payment I saw in last year’s budget.
Dowell, Orme, Constantin and the Public Works staff have acknowledged for about 5 years now that they have not been funding street maintenance or repairs, but they’ve never missed a UAL payment. If that’s not Mutiny folks, I don’t know what to do with my yardarm.
So here are my solutions to this mess:
Let me know what you think.
Another fucking remote meeting. Within minutes after the meeting started, I had to contact the clerk to tell her – no sound on the microphone, we couldn’t make heads or tails what Finance Director Scott Dowell was saying. We were using my husband’s phone to stream the meeting on our tv – sorry, we’re not public workers, we don’t get free devices or IT help. I had the tv turned up to the key of G, when the clerk swished in and turned up the volume on Dowell’s microphone – Dowell is an idiot – and whoa Nelly, the volume jump almost knocked me out of my chair.
I know I can watch these meetings later, on video, but I do want to watch it live and participate if possible. It’s pretty onerous. I have to have one device to stream the meeting, and turn on my tablet to make comments, and with our cheap internet plan, everything slows down to a crawl. The meeting keeps refreshing, it’s hard to listen to that. Trying to comment takes forever. I couldn’t sign in to Chico Engaged on my tablet, I think I need my laptop to do that – another device? And, while I’m messing with the devices, the meeting is going on, and I’m missing it.
Sitting in the chambers, I just have my notepad in front of me, and I can jot stuff down while still paying attention. Having to use two devices to watch the fucking meeting SUCKS.
I made it through Dowell’s finance report – having seen it once in a Finance Committee remote meeting, I had to see what he would present to council. It’s always worth paying attention to this guy. He’s trying to explain why we are ahead of budget but are still short by millions. Last night he referred to the Camp Fire as a “wind fall”. Oh yeah folks, city of Chico made so much money, mostly in sales tax, during the months after the Camp Fire, that it screwed up projections for this year. Yes, they over project, and when they don’t get the revenues they projected, they CALL IT A LOSS.
Would you believe, they hired a consultant to help the finance director make these projections, and they’re still whack? They didn’t realize, the Camp Fire was an anomaly? The town next door doesn’t burn down every day – when has that ever happened to you? But yeah, you have a disaster that destroys a vibrant retail district near your town, you have all these refugees with no where else to live, no where else to shop, no where else… and your city manager tells anybody who will listen (council and the press) that these refugees are COSTING YOU MONEY? And then he expresses surprise a year later when it turns out, they SPENT MONEY IN YOUR TOWN? And raised revenues by about $8 million over the previous year?
Our city manager is an ass. He’s been trying to tell us we’re broke for years now, telling us we need to pass a sales tax increase to pay down OUR? bills. But listen, there’s more.
Dowell has been presenting a “plan” to deal with our impending bankruptcy – he’s divided actions into 3 phases – I presented that here:
Dowell presented a different list last night, all out of order. Look at the list I posted, because Phase 1 is already complete. City management has cut capital works projects some time ago. I sat in a meeting almost 5 years ago at which they said they had NO MONEY for street repairs, and they were taking projects OFF the list because they had no money. Dowell spoke a lot last night about 11 positions that were just eliminated – all part time, hourly workers, including interns. He and Orme are constantly threatening more cuts.
But another suggestion that was on that list for the Finance Committee presentation was to defer “catch up” payments on the pensions. Dowell said that would cost the city about $350,000 in interest. Last night he said they didn’t need to do that – so he’s going to go ahead and make that $9 million payment toward $taff’s “Unfunded Actuarial Liability” – that’s the pension deficit.
Yeah, they cut street maintenance and repairs, but are putting $9 million of the taxpayers’ money into their own pockets. Great.
Later I want to present the rest of that “Pension Time Bomb” conversation, as well as my solutions to the city’s pension problem. Stay tuned!
Happy May Day – whether you celebrate it as a tribute to the work force or as a rite of Spring, take time to enjoy the sights and sounds of Spring. It’s my dog Biscuit’s 14 birthday, and she’s raring for more.
Friends of mine have promised to go to Sacramento today and participate in a protest of the COVID Shut-down at the State Capital. Of course the CHP would not give permits, so they will drive around the Capital building in cars, honking their dissatisfaction with the governor’s foot dragging in lifting the order for counties that have not manifested a real threat – like Modoc County, who, in the spirit of Captain Jack, went ahead and opened up today, despite Newsom’s onerous orders.
https://news.yahoo.com/no-coronavirus-cases-california-county-165302692.html
Most Butte County towns would like to follow suit. Mayors and county board chairs all over Butte, Glenn, Sutter and Yuba County have signed a letter to the governor, a written request from Senator Jim Nielsen and Assemblyman James Gallagher that he lift the order for our counties.
Conspicuously absent is the name of Chico mayor Ann Schwab. An excerpt from the Enterprise Record:
OROVILLE — Assemblyman James Gallagher and state Senator Jim Nielsen have put forth a letter to Gov. Gavin Newsom’s office with a request to begin opening up economies in their collective region amidst the COVID-19 pandemic.The letter, which was announced Friday, has gained signatures from elected officials throughout the north state including Butte County Board of Supervisors Chair Steve Lambert, Glenn County Board of Supervisors Chair Leigh McDaniel, Paradise Mayor Greg Bolin, Oroville Mayor Chuck Reynolds and Willows Mayor Kerri Warren.
Various points are covered in the letter such as economic impact and low infection rate. It also cites Enloe Medical Center’s handling of the potential medical surge by opening an additional facility with beds.“At this point, given the COVID-19 numbers locally — and our enhanced healthcare capacity — we ask you to allow our counties to exercise local authority to implement a careful and phased reopening of our local economies,” the letter reads.The letter also cites concerns of long-term economic impact creating health issues.“The public health stakes are high too,” the letter says. “We know that prolonged recessions cause dire public health issues of their own. The indirect impacts of this virus can cause a higher risk of heart disease, acute sleep deprivation, depression, decreased response to vaccines and an increase in smoking and drinking alcohol.”
In March, Newsom launched the stay-at-home order and numerous businesses were closed if deemed non-essential. Since then, many people have been out of work or furloughed as a result.
“The governor has already said he realizes the virus has affected different regions in the state differently,” Schwab said. “When the time comes that we can join the state in reopening, I want to have some parameters in place before those announcements are made.”
I just don’t know where Schwab is coming from. She says she wants more safeguards? Force us to wear masks, but not the N-95 which are the only ones that really protect us? She’s practicing behavioral experimentation. This is the woman who gave us the single-use bag ban, but you’ll notice, she doesn’t make a squeak as grocers all over town refuse to allow our used bags in their stores.
Schwab is just a Democrat, and that’s her first priority – toe the party line. There she says it, ““The governor has already said he realizes the virus has affected different regions in the state differently,” Schwab said. “When the time comes that we can join the state in reopening, I want to have some parameters in place before those announcements are made.”
Sure, the governor has acknowledged different regions are different, and that some have a lower infection risk based on the characteristics of their region. But, little dictator that he is, he steadfastly denies our sovereign right to take care of our own business based on our needs and situation. Like Schwab, he’s a creepy, entitled little fascist who wants to be king.
Well, excuse me, but My President, The Donald, has declared the social distancing bullshit is over. Let us get back to work, and back to SPENDING MONEY. The city cries poor mouth, and wants a sales tax increase? Well, Mark Orme’s capricious and subjective shut-down order is doing more damage to local retail every day. People are shopping online and in other, friendlier towns, and liking it. If Chico Council doesn’t wake up soon and wrestle back control of the city from Queen Ann and Sir Mark of Gisborne, the damage will be irreversible.
Let me tell you, I suddenly realized the other day, Schwab’s bike store, Campus Bicycles, determined to be “essential” by our city mangler Orme, have been open the entire time, every day of the pandemic. I called the store one day, and a bright and pleasant young man answered the phone. Yes, the store is open, wide open – no appointment necessary, nor did he mention any restrictions on how many people can be in the store at one time. I asked about repairs, cause I’ve taken my old puddle jumper in to Budd Schwab before – he’s got some kind of reputation for fixing bikes, from when he just worked at Campus. The boy on the phone surprised me – repairs are backed up 2 – 3 days, which is very unusual. He said business is very good, very brisk, and attributed that to COVID.
I think that sucks Ann, you rotten bitch. Scuse me for emoting, but who the hell does she think she is? Who gets to decide, what’s an “essential” or “non-essential” business, what kind of shit is that? Orme decides, and Ann gets to decide if he keeps his job, I think that’s pretty obvious.
But you know the worst thing the city has done, is shut the public out of meetings, that’s very purposeful. They are also hiring a new chief of police right now, and that isn’t even on the agendas. Huber wants to bring back the supplemental allocation that was removed from the April 7 agenda. They’re playing hard and fast with the rules, hoping you’re just sitting behind that mask breathing your own methane, too stupid to say anything. Take off the stupid masks and wake the hell up People!
Here’s a letter I sent to the Enterprise Record.
The result – on the positive side, Butte County only had 15 (Wolcott updated me to 16) COVID cases and all have recovered. On the negative, city management has admitted the shut-down has been bad for the economy, predicting millions lost in city revenues if the economic strangulation continues into Summer.
But Chico mayor Ann Schwab has refused to sign Senator Nielsen and Assemblyman Gallagher’s request to open up the county again. The mayors of every other town in Butte County have signed the letter, which states, “We know that prolonged recessions cause dire public health issues of their own,” but Schwab wants to wait until the rest of the state, including hot-spots like San Francisco, are opened up.
Meanwhile, Schwab’s bike store, deemed “essential”, is doing great. An employee told me, “people have a lot of time on their hands due to COVID,” sales are booming and repairs are backed up, which is unusual.
I think that’s outrageous. How is a bike store “essential”, but not a clothing store or a barber shop? Public meetings are closed to the public right now, but the Mayor’s business is open and making a hefty profit. That’s ridiculous. Sign the letter Ann, and end the shut-down. Or step down as mayor, due to obvious conflict of interest.
Juanita Sumner, Chico CA
Thanks Dave, for sending me the link to this ongoing discussion about the Pension Time Bomb.
Robert Kiyosaki, entrepreneur, author, and radio show host, just published his latest book (co-author Ed Siedle) in January, “Who Stole My Pension? How You Can Stop the Looting” .
In this five radio part series, he speaks with his co-author, Ed Siedle, and his local city council member Sal DiCiccio (Phoenix, AR) how public pensions are ruining our economy.
Kiyosaki states what should be obvious, “This pension thing is very suppressed, people don’t know much about it. If you think COVID is big, the pension failure will be bigger.”
Yes, we’re being misled as to the enormity of the problem by public $taffers that put their own interests first. Chico City Manager Mark Orme and his Ass City Mangler Chris Constantin, along with “Services Director” Scott Dowell, have walked a tight rope – they tell us we need more revenues but they won’t say why. Even when they tell us that revenues have been ahead of budget, they keep saying we don’t have enough money to maintain infrastructure. If you pay attention, you see what Kiyosaki and his guests are saying – the city gets more revenue every year, but it’s just never enough.
Phoenix AR council member Sal DiCiccio says it very plainly. “If you see more revenues coming in to your city, and you keep wondering why your roads are looking like crap, and you believe you’re not getting the type of services you should be getting, it’s the pensions. Every city and state is on the same plan. Phoenix is a growing economy but we still have crappy roads because more and more money is being sucked into government pensions.”
Regardless of whether you live in a “right to work state“, DiCiccio explains, the unions elect all the politicians, putting millions into elections every year. In Chico the biggest donors are the Chico Police Officers Association and the Service Employees International Union – SEIU was the biggest single contributor to CARD’s ill-fated Measure A, and CPOA president Jim Parrott ran the campaign pac.
DiCiccio says “We’re becoming a pension machine, and they’re making the cities unliveable.” Next time we’ll talk about why. And get ready for the next installment in Kiyosaki’s series – “Kentucky Fried Pensions.” You can see more at his website,
The Finance Committee met Wednesday (4/22/20) under cover of COnVID, with no public present, and a questionable comment system. Luckily, the reports are available so we can see what they’re up to, even if we were not able to comment at the time. These issues still have to come to a council meeting, so why not talk about them now and send our comments directly to the councilors before their next clandestine meeting?
Finance Director Scott Dowell gave his usual presentation, and while he said repeatedly that city revenues have been “over budget,” he still warned that the COnVID panic was going to set us back. So, city management has already been making cuts. Dowell presented the order of the cut-backs to the Finance Committee last Wednesday (4/22/20). They’ve already begun Phase 1 – in fact, as you may know, for example, there hasn’t been a capital project in Chico for over a year now, since they gutted the streets fund to pay their pensions.
FYI – the improvements being made along Hwy 32 are being done by CalTRANS.
Phase 1
Delay new capital or one-time expenditures for 6 months until 1/1/2021. CUT SERVICES DONE
Delay General Fund transfers to emergency reserves and replacement funds. DONE
Delay or eliminate new recruitments. DONE
Defer CalPERS UAL payment in July and pay monthly. Will cost $328,661 in interest.
Delay or Remove General Fund transfers to Private Development Funds for 1 year. CUT SERVICES DONE
Close City Hall Operations One Day or More per Week (Utility Savings). DONE
Furloughs (continued health benefits). CUT SERVICES WHILE STILL PAYING DONE
Hiring Freeze.
Utilize Section 115 Pension Stabilization Trust.
Grant Opportunities. DONE
Note that almost everything they’ve done on this list results in a direct cut in services. But, they are still making payments on their Unfunded Accrued Pension Liability, threatening a loss of $328,661 per year in interest penalties if they don’t. They just raised development fees, so we’ll see what happens with the Development Fund. And, while they say they’re delaying recruitment, they just hired two new positions, including a Public Information Officer – why would we need a PIO at a time like this?
And there’s the Pension Stabilization Trust – they’ve been siphoning millions out of other funds, into that trust, to be saved for paying down the pensions. Will they use it? Of course, that fund is restricted to paying their pensions.
I think this illustrates what I’ve always said – the first thing they cut is services, which is the whole point of having a city. Look at the street in front of your house – unless you live in a new subdivision, you haven’t seen road crews in your neighborhood for years. Unless they were shoveling slobbers into pot holes. (Slobbers are the left over asphalt or cement from a job, they have to get rid of it, or it will dry rock hard in their truck, so they go through an old neighborhood on the way back to the yard and empty their truck into potholes. These patches last a week at best, and will get all over your car if you drive through when they are still wet).
And get ready, cause they will continue to cut services, cut services, cut services, until we agree to pay their sales tax increase.
Phase 2
Initiate Financial Emergency Budget Policy. CUT SERVICES
Suspend Minimum Staffing limits. CUT SERVICES
Negotiate temporary salary reductions. Why isn’t this number 1? And why not permanent? Why not negotiate higher shares?
Institute Department-wide reductions (utilize plan revised plan from Sept 2018). CUT SERVICES
Layoffs. CUT SERVICES
Phase 3
Discontinue Waste Hauler Franchise fees to Roads. CUT SERVICES – DONE (they’ve already deferred these fees from the roads for 2 years)
Freeze Existing Capital Projects. CUT SERVICES
Discontinue funding for Arts Commission projects. REALLY A NO-BRAINER, WHY WASN’T THIS IN PHASE 1?
I’m sure you have your own questions – put them in an email, and send them to council.
ann.schwab@chicoca.gov
alex.brown@chicoca.gov
sean.morgan@chicoca.gov
kasey.reynolds@chicoca.gov
scott.huber@chicoca.gov
karl.ory@chicoca.gov
randall.stone@chico.gov
One of the most frustrating aspects of the current health crisis is there seem to be no consistent rules for anything. The Establishment seems to be making it up as they go along.
Here in Chico, COnVID Czar Mark Orme is making the rules, having been handed the whip by everybody’s favorite Mistress of Mayhem, Ann Schwab. Orme has called for “remote meetings” of various boards and commissions, including City Council. He has suspended “parts” of the Brown Act (!). He has decided that the public can only comment by computer, and he’s chosen an online system that doesn’t work. The public must either chime in ahead of time on Chico Engaged! or comment via email, a special address that feeds live to the clerks.
I have to say, the clerks are trying hard to make this work, but it’s not. For one thing, council keeps calling “special” meetings, with only 24 hours notice, so that kind of puts a kink in getting your comments in ahead. Does that matter? Does council actually read the comments on Chico Engaged? Did they read this one?
I could not agree more. Get rid of those who cannot live in civilized society
John owner of
Grease trap Cleaning Cincinnati Ohio Grease trap Pumping South Bend Indiana Excavation Contractor Evansville Indiana Mold Removal Dayton Ohio”
John is obviously following the blogger’s advice – comment on other websites, especially the free ones! There are at least a dozen spam ads on that website, scattered across various postings.
I don’t believe council members read every comment posted on Chico Engaged for any agenda item. I don’t believe they read all the emails either, it’s not possible, even for a speed reader. At the first meeting the clerk read them aloud, but that was probably almost as onerous for council as having to actually listen to members of the public, so they stopped that. Now the clerks have to decide whether comments are “pro” or “con” and tally them as such. Wow, so much for all those eloquent speeches we’ve got used to over the years. Hey folks, don’t waste your time, just type in PRO or CON.
I don’t believe they should be holding meetings right now, there has not been anything on these agendas that should qualify for a “Special”, let alone an “Emergency” meeting (1 hour notice).
As one local gadfly noted:
‘To limit city council meetings to one meeting a month; Those meetings should only be held if there are essential government operations that need to be discussed; insure that only essential city staff need to attend these meetings; and ask staff to address how we can provide safe space for the public to interact with the council during those essential meetings. This will remain in effect for the duration of the Butte County Local State of Emergency. The next scheduled meeting on March 17 should be rescheduled.’
Regular meetings require 72 hour notice. Special meetings require on 24 hour notice. Emergency meetings require 1 hour notice. We have had one emergency meeting, two special meetings and one regular meeting. All but the first one had no public in attendance.”
Yesterday morning (4/22) there was a “remote” Finance Committee meeting. There was nothing on that agenda that required immediate action, just updates, reports included in the agenda. Except for the General Services Director’s report, which should be included in the written reports, but for some reason is not.
The meeting was live streamed, and I was told I would be able to watch it and comment with the link provided. But when I tried to tune into the website at 8:15 for the 8:30 am meeting, it demanded a password. By the time I got the city IT guy to give me the freaking password, the committee had already heard, discussed, and voted on the first item. He and the clerk were flustered, I could tell they had not worked out all the bugs.
I watched the rest of the meeting – I’ll blog the finance reports later, very interesting.
There’s no conversation with the public. These committee meetings used to be where citizens could actually engage these people on specific issues before the full council is called to make a decision. Where we could ask questions. Too many questions.
So, I had to wonder – what is the county doing? Cause they actually have WORK going on, you know, fixing roads, etc. They actually have essential business to discuss. I found they also have a totally different online comment mechanism, way better than the city. Here’s the agenda for next Tuesday (4/28/20) , and you can comment on various items any time after they post the agenda. Check it out.
https://buttecounty.granicusideas.com/meetings/506-board-of-supervisors-meeting/agenda_items?page=3
The meeting will be live streamed – here’s the link to the main page, you will see the video link on Thursday when the meeting begins.
http://www.buttecounty.net/boardofsupervisors/boardmeetings
Next time – the finance reports.
Here’s a California town that is finally starting to wonder, “Didn’t we all fix this in 2012, by approving Proposition 30, increasing taxes on ourselves to fund education?”
“Where did all the money go?”
In 2012 San Diego County voters approved Prop. 30, a bond that delivered over $1.25 billion, raising annual funding by $4700/student. But, citing over 200 layoffs in one county district ( https://www.voiceofsandiego.org/topics/education/sweetwater-considers-more-than-200-layoffs-and-closing-learning-centers/ ), redirection of special education funds in another district, and countywide budget problems, critics are saying the money was not used for the kids, but went into the pockets of those districts’ employees.
“The truth is that districts are having difficulties because they’ve chosen to give most of this increased revenue to themselves, in the form of pay raises.”
“An analysis of pay data for San Diego County K-12 employees from 2012 through 2018 (the latest available) shows employees who have been with the district during this time have seen their median total pay rise $19,814/year, or 32 percent. That’s an average growth rate of 4.78 percent per year, during a period when funding rose at 5.38 percent per year.”
Furthermore, “according to the Bureau of Labor Statistics, the people of San Diego County have gotten raises at 2.21 percent per year.
“In other words, our school districts have been using their increased funding to give themselves raises at a rate matching the rise in revenue, well in excess of inflation or wage growth everywhere else.”
Let’s all harken back to 2016, when Chico Unified passed Measure K.
https://wordpress.com/view/noonmeasurekchico.wordpress.com
Just a few months later, I heard CalSTRS and CalPERS were upping the required contributions for district employee pensions and benefits. I contacted district finance mangler Kevin Bultema and received the following response:
“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.”
This isn’t just about school districts. All our local government agencies have the same problem. CARD will most certainly put up another tax measure, I’ll bet we’ll see it as soon as 2022. The city is working now on their 1 cent sales tax increase measure.
But, steam is building, people are getting mad. In this last election, more bonds and parcel taxes were defeated than ever before. We may have reached the boiling point. So, we need to turn up the heat.
It’s time to work harder than ever before to inform people about these tax measures, the pension deficit, the “catch-up” payments to CalPERS, etc.
The time to act is NOW.
Oh for cripe’s sake, another letter from the Measure A people. Like a friend of mine has observed, they are still really mad they didn’t get this measure past the voters. I was hoping they’d just stomp their foot and disappear through the floor, but you can bet they’ll be back in 2022.
Letter: Reflecting on the failure of Measure A
Great and timely article in the Sunday, April 5 Enterprise Record regarding “No Sports.” For those of us who sports and athletics is such a large part of our lives it is hard to not get our daily “Sports Fix.” We know professional, collegiate, high school and other amateur sports will resume as we recover from this COVID-19 Virus. Our hearts go out to those directly infected with the virus and all of us indirectly affected by staying home and not participating in work or athletic activities. It is a good time to reflect on why Measure A failed and how to move our local recreation and sports programs forward.
In the beginning I was in favor of Measure A. Over the course of the campaign I changed my opinion that the measure would fulfill our facility and program needs. There are too many reasons to cite in 250 words for the failure. No sunset and a CPI were two along with few specifics on what facilities were needed and would be provided by the parcel tax if passed. CARD ignored half of the electorate when they planned the measure.
We need to analyze what facilities are really needed and what programs need to be re-energized and focused on. The October 2018 facilities assessment study should have done this but did not. It was an overall marketing study of the amateur sports market with two of the three proposals being private/public partnerships with no explanation by CARD.
— Terry Cleland, Chico
Cleland is right about the the “no sunset” and annual increase with the Consumer Price Index – the measure was bad. He is also right about the lack of specifics – the measure promised nothing, except more revenues for CARD to spend as they pleased.
But he left out the bond measure – General Manager Ann Willmann admitted several times that the parcel tax proceeds were not nearly enough to pay for any of the over-the-rainbow projects mentioned in the Measure A campaign. Willmann said they would use the parcel tax proceeds to secure a $30-something-million bond, the debt service for which would have cost $2 million a year while only providing $1 million for projects. A million dollars a year? Let me put that into perspective – several years ago, the city of Chico spent a million dollars “upgrading” the public restroom at One Mile. Get it?
Cleland also neglected to mention the pension deficit, or the fact that a simple majority measure goes into the General Fund, to be spent at the pleasure of the board and staff. He wouldn’t admit – the salaries and pensions at CARD are not sustainable, that they have bottomed out the General Fund to pay down the deficit created by their employees’ unrealistic and unreasonable “shares”. Willmann admitted many times they had deferred maintenance while paying their pensions.
I feel Cleland is trying to nudge the conversation away from the fact that CARD is poorly managed and is not fulfilling their mission statement.
Cleland attended CARD General Manager Ann Willmann’s “informational” propaganda sessions. He heard her tell the group that CARD is without debt, and he sat right behind Dave Howell as he corrected Willmann. Howell quoted the latest figure on CARD’s Unfunded Pension Liability as $2.7 million, because that was the figure Willmann had recently given the Enterprise Record. She admitted to him and the rest of us that it is actually over $3 million. How does it grow so fast? Because, only 5 years ago, agency management was paying NOTHING toward their own pensions. CARD was paying, in total, less than 10% of the cost. These agencies have put off paying the pensions, because they expect the taxpayers to foot it.
As of 2017 Willmann was only paying 2.5% of the cost of her pension, with an annual salary increase, that’s why CARD’s deficit is growing so quickly. As of 2019, she was paying 8%, with another salary increase, up to $127,000/year.
If you want to see the consequences of this kind of pyramid scheme, read the latest CalPERS “actuarial valuation report” for CARD.
Just type “Chico Area Recreation District” into the search engine.
Look at what CalPERs will expect CARD to pay in “catch up” payments within the next few years – and then remember, the taxpayers pay ALL OF IT, in addition to half the payroll contribution.
And here’s another lie Willmann floated to the public during her little propaganda blitz – she said that CARD has no control over the shares or amounts they pay to CalPERS. “this needs to be handled at the CalPERS level and the legislative level…” she lied.
Here’s two holes in that lie –
Okay, here’s where it gets even murkier – Willmann claimed in those sessions that her 8% was more than half of the agency’s cost – she bragged about that repeatedly. But, when I asked her, in front of the rest of the group, why the city and CARD pay totally different percentages, she would not answer me in the meeting, saying she needed to check her figures. No, it was because she didn’t want to tell the others the truth – her 8% is not MORE THAN half of what the agency pays, it’s not even half. She admitted to me via email later, the agency pays 17%. “ The Total Normal Cost is then split in to the Employee Contribution Rate and the Employer Normal Cost Rate. I was incorrect regarding our Total Normal Cost, it is currently 17.127% for our classic members not 14%.”
Why did she tell everybody else CARD only pays 14%? Obviously, Willmann knows the truth, she knows she pays less than half, but misleads the public, because it’s in her best interest to do so.
And, here’s the real pig sticker – the taxpayers not only pay over half the payroll portion, but make the entire “catch up” payments on the resulting Unfunded Accrued Liability.
So, in answer to Mr. Cleland, I’ll say, before I would even consider a revenue measure for this sad little agency, I would demand the following (and this is just for starters) :
Meanwhile, we do need to poke our legislators to dump the California Rule, and to start dissolving CalPERS and working toward a more sustainable pension system for our certainly needed but much overcompensated public employees.
Next time we’ll apply the same argument to the City of Chico, who may not be discussing their one cent sales tax increase measure in front of the public right now, but I assure you they are planning to put it on the 2020 ballot. You can find the same actuarial report for the city at the website I linked above, just punch in City of Chico.
Click to access chico-area-recreation-and-park-district-miscellaneous-2018.pdf
Click to access chico-area-recreation-and-park-district-miscellaneous-2018.pdf
Click to access chico-area-recreation-and-park-district-miscellaneous-2018.pdf
Click to access chico-area-recreation-and-park-district-miscellaneous-2018.pdf
Chico Taxpayers Association 
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And then, another ping, about an hour and a half later –
lisa welch at May 15, 2020 at 3:05am PDT
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The article this SPAMMER was posting on was posted two months ago, “Do NOT amend Ordinance 2466!” There hasn’t been a legitimate comment on that posting since I responded to CHATter Charles Withun 18 days ago. That’s why I get the pings – I comment or vote on other’s comments. I tried to disable the notifications on my account, but they just keep coming. At whatever hour of day or night they are working in “the botnet”.
I’ve notified the clerk, and I’ve spoken with others who have also notified the clerk. I know the clerk’s office is working hard at getting this system to function, and they’re frustrated, sure, but why don’t they just tell the city manager it’s NOT WORKING, and get us back into regular meetings?
I have made this point several times to council. At the last meeting, Sean Morgan made a limp-wristed gesture toward opening the meetings.
“”at the next possible meeting…I’m not saying ALLOW it… but discuss having public attendance…” That, Folks, is called, “posturing for your peanut gallery“. The rest of them voted unanimously to approve Morgan’s little gesture, because it didn’t amount to anything. Close your fly, Mr. Morgan, the show’s over, and will soon be forgotten.
The meetings either need to end until the Shut Down is over, or they need to end the Shut Down and let the public back into the meetings.