Happytown: New pension fund law could cost local governments
Counties could have to cough up $264 million to help stabilize deficit in Florida Retirement System Pension Fund
Published: June 5, 2013
AMOUNT TO BE CHARGED TO STATE AND LOCAL GOVERNMENT AGENCIES UNDER A NEW LAW TO STABILIZE A DEFICIT IN THE $135 BILLION FLORIDA RETIREMENT SYSTEM PENSION FUND
AMOUNT TO BE PAID BY THE STATE’S 67 COUNTIES, WHICH WERE NOT SUPPLEMENTED WITH ADDITIONAL REVENUES LIKE THE SCHOOL DISTRICTS AND STATE AGENCIES THAT WILL MAKE UP THE DIFFERENCE
PROJECTED EXPENSE TO ORANGE COUNTY UNDER THE LAW; MIAMI-DADE COUNTY WILL PAY $21.2 MILLION, AND HILLSBOROUGH COUNTY WILL BE RESPONSIBLE FOR $7 MILLION
“WE ALL KNOW THIS IS ONE OF THE MORE SOLID PENSION PROGRAMS IN THE COUNTRY. IS THAT MONEY GOING TO [FLORIDA RETIREMENT SYSTEM] TO ACTUALLY SHORE IT UP? OR IS IT A LONG-TERM STRATEGY TO PRESSURE THOSE OF US AT THE LOCAL LEVEL TO SAY WE CAN’T SUSTAIN THESE INCREASES?”
– HILLSBOROUGH COUNTY PROPERTY APPRAISER BOB HENRIQUEZ
SOURCES: THE TAMPA BAY TIMES, ORANGE COUNTY GOVERNMENT
This one’s got to sting. Following a legislative session that saw elected officials talking out of both sides of their mouths when it came to whether or not county rule should even exist, effectively – House Bill 655 would have it that no county can make its own rules regarding employment benefits, though it has yet to be signed by the governor (or even, reportedly, delivered to him) – it’s interesting to note that counties are now being expected to pay the piper on the state’s allegedly troubled pension program. Under the ruse of fiscal responsibility (and following the failure of an initiative to shut the pension program down altogether), legislators unanimously agreed that the $135 billion Florida Retirement System pension fund was in need of the austerity treatment, and, because the state didn’t want to cut any of its precious tax giveaways to billionaires, local government agencies should be on the hook. Senate Bill 1810 passed on the last day of session (May 3) and was quietly signed into law two weeks later. A scar was born.
As the Tampa Bay Times points out, the rolling attacks on the state’s pension system are likely part of a larger punitive crusade. It’s only been a couple of years since the Legislature mandated that public employees take an effective 3 percent pay cut to fund the perceived/predicted pension gaps, and the sky-is-falling rhetoric that convinced the House this year to pass a bill (killed by the Senate) forcing public employees into 401(k) programs on the private market showed obvious disdain for the FRS, not to mention workers and seniors. The pension program is a clear target for Republicans.
But, at least in the case of SB 1810, it’s not as clear as the votes would have it seem. It turns out that during the floor debate on the bill, some were under the impression that the new law would not raise the burden on counties, mostly because that’s what they were told. When state Rep. Mike Fasano, R-New Port Richey, asked pointedly if the rates on counties would stay the same or go up, bill co-sponsor Rep. Seth McKeel, R-Lakeland, replied, “They are the same rates they were originally, sir.” Only, McKeel was referring to the rates being the “same” as they were when the bill was first heard in April, not the same as they are for counties now.
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