For those of you who thought Jacksonville was done with pension legislation, hold the phone.
Jacksonville City Councilman Danny Becton introduced a bill last week that would mandate 15 percent of budgeted money over a baseline budget would go to the city’s $2.8B unfunded pension liability.
“An amount equal to 15% of the General Fund/ General Services District aggregate increase in budgeted revenues (net of transfers from Fund Balance) over the baseline amount of $1,088,466,862 in FY16-17 [would] be used to make additional payments to reduce unfunded accumulated actuarial liability on the City’s three defined benefit pension plans,” reads the bill summary.
“The additional payments will continue until either the FY29-30 fiscal year or the commencement of the pension liability surtax established in Ordinance Code Chapter 776, whichever is earlier,” the bill summary adds.
The expectation is that budgets will increase: raises, mandated as part of the pension reform deal of 2017, would add up to a $120M hit on the general fund by FY 2020. Of course, 15 percent of $120M is $18M — serious money, and a commitment that hearkens back to the 2015 pension reform legislation that was largely revised by the latest deal.
The pension reform bill put forth at the end of Alvin Brown’s administration committed the city to increased pension payments over a twelve year period, with the number for most of that period being an extra $32 million.
Even in 2015, when the accord was being finalized, there was an unspoken consensus that things would get really interesting once that $32 million extra hit kicked in.