According to a recent study by California Watchdog,
the state financial situation may be worse than anticipated with local
and state debt estimated at $80,000 per household and state debt
possibly over one trillion dollars. Part of this problem seems to
involve CalPERS unfunded liability which was estimated at about $16
million for our county.
At the May 7, 2013 budget workshop, the
Auditor/Controller reported that, starting in the future, CalPERS will
be reporting the unfunded county liability to allow the counties to work
with a more accurate balance sheet. This would lessen the risk of an
unanticipated hit on the taxpayer. We understand the Auditor wants to do
this now. We agree.
At that meeting CCTA expressed concern about
significant portions of operating costs being funded by federal grants.
As an example, about 25% of the Sheriff budget is so funded. This is
a strong indication that we, as a county, are not living within our
means, and are requiring money from outside sources to make up the
difference. Both the federal and state governments have budget problems
of there own, making them insecure sources going forward. There is also concern about
the dependency created giving the federal government possible indirect
influence in local law enforcement. This could be in conflict with the
10th Admendment to the US Constitution.The same seems to be true
regarding state grants. Attempts by the state to control local land use
decisions has resulted in serious problems in our county with
development practically frozen for years.
We recommend that the county budget for unfunded
liability now and exercise caution in seeking grant funding from
bankrupt federal and state governments. Grant funding of salaries could
be more dangerous than funding of equipment purchases etc. because of
the higher vulnerability to disruption of county government functions,
if anticipated funding is not received.
As to CalPERS, we think employee
retirement benefits should be an issue for the employees and CalPERS,
once the county makes its agreed-upon contribution. The county should
consider plans that not only take the county out of the path of any
future growth in the unfunded liability, but require the CalPERS
members themselves to fund the deficit. That is a more just approach,
as it requires CalPERS to be accountable to its members, not the county.
Another solution may be for the county to withdraw from CalPERS,
replacing the system with one controlled by the employees/retirees.
After all, it is their money.
On the other hand, we are thankful that the county is placing public safety as high priority in the budget process.
Calaveras County Taxpayers Association
