Lenny Curry Archives - Page 5 of 105 - Florida Politics

Jacksonville and its supervisors get closer to a deal on Tuesday

Tuesday saw negotiators from the City of Jacksonville squaring off with the Jacksonville Supervisors Association in collective bargaining. And substantial progress was made on key elements during two sessions.

As with the other bargaining units, the city is negotiating with in the wake of the passage of August’s County Referendum 1, a considerable gap looms between what the JSA wants and what the city is offering.

There is a fundamental difference between positions of the JSA and police and fire unions. Unlike public safety unions, the JSA is not “naive” about (or especially resistant to) the possibility of new hires being placed in 401(k) programs, based on the marketing of the referendum, yet it does take issue with the city’s proposed salary hikes.

The proposed 9.5 percent raise and a 2 percent lump sum payment fall far short of what the JSA sees as necessary, and the gap between management and labor on pay levels, which isn’t new, currently seems like the biggest sticking point in negotiations.

JSA head Jason Geiger said “the proposal does nothing to address the inequity” created by wage reductions in 2010, saying it was an “insult.”

JSA members have “dangerous jobs” as well, such as code enforcement, road construction management, traffic control supervisors, and 911 supervisors.

The JSA noted the city proposal does not make city employees whole, compared to pre-2010 pay levels, and the city proposal leaves JSA suffering compared to other bargaining units.

Regarding the defined contribution plan, the JSA said it “may be lucrative” under favorable market conditions, and did not rule out supporting it.

Geiger said the JSA was not “naive” to the potential of a defined contribution plan.

Also, a wage proposal was advanced from the JSA.

They asked for a 12 percent lump sum payment, making up for post-2010 losses from the 2 percent pay cut; a 7.5 percent pay raise effective October 2017, retroactive to the previous year; a 9.5 percent raise effective in October 2018, and a second 9.5 percent effective in 2019.

The JSA proposal demands equitability among all general employee unions.

The city offered to modify its proposal in response, boosting numbers incrementally, yet falling short of the JSA targets.

A 2 percent nonrecurring raise was proposed for this year, followed by more generous offers: a 4.5 percent hike next year, followed by 3.5 percent and 3 percent hikes in subsequent years. Thus, a 2 percent nonrecurring raise and an 11 percent total raise, contingent on defined contribution for new hires.

“We’re pretty far apart as far as our numbers,” Geiger said at the close of the morning session.

The afternoon negotiation saw the parties get a bit closer.

****

The parties reconvened at 12:30 p.m. for the second round of negotiations.

The JSA advanced a counter: a one-time lump sum consideration of 12 percent, then salary hikes of 7 percent for FY 2018 and 9 percent for FY 2019 and 2020.

This represented a 1.5 percent decrease from the original proposal from the JSA.

Geiger asked city negotiators to consider their position about the other unions, and the sacrifices they made.

The parties will reconvene at a date yet to be determined.

Lenny Curry to keynote First Coast Legislative Delegation meeting Thursday

The inaugural First Coast Legislative Delegation meeting, to be held Thursday at Jacksonville University’s Public Policy Institute, is going to be different from the Duval Delegation meeting held the day before.

For one thing, it will be regional in nature, including 16 representatives and senators total.

And for another thing, Jacksonville Mayor Lenny Curry will keynote the event.

Curry’s speech — to be given over lunch — begins at 12:15, after a morning full of expert panels.

The event starts at 8 a.m, and the colloquy kicks off at 9, with an education panel including school superintendents from Duval and St. Johns counties, Nikolai Vitti and Joseph Joyner. The two supes will be joined by Terrie Brady, head of the Duval Teachers’ Union.

At 10 a.m, the discussion rolls on toward the transportation sphere; the tripartite panel there includes Jeff Sheffield from the North Florida TPO, Brad Thoburn from the Jacksonville Transportation Authority, and Joseph Debs of Reynolds, Smith, and Hill.

Healthcare takes pride of place at 11 a.m., with UF Health CEO Russ Armistead, Florida Blue GuideWell COO Prakesh Patel, and Christine Sapienza, JU’s Dean of the College of Healthcare Services.

Packed agenda for Duval Delegation meeting Wednesday

The Duval County Legislative Delegation has a lot of new faces and a crowded agenda in front of it on Wednesday afternoon, when they convene at Jacksonville’s city hall.

New to the body: Republican Reps. Cord Byrd of House District 11 and Clay Yarborough in HD 12,  Democratic Rep. Tracie Davis of House District 13, Democratic Rep. Kim Daniels in HD 14, and Republican Rep. Jason Fischer of HD 16.

Those new members — along with veterans Rep. Jay Fant and Senators Audrey Gibson and Aaron Bean — will elect a new chair, a new vice chair, and hear from 44 speakers, ranging from Mayor Lenny Curry to representatives of the school board, local colleges, and sundry local non-profit agencies.

Though 44 speakers sounds like a lot, the number is down from the 60 speakers who addressed the body a year before.

Among some of the more interesting speakers: Jacksonville Mayor Lenny Curry, whose legislative agenda in the upcoming session won’t be quite as ambitious as the 2016 iteration, in which the combined power of the local and regional delegation was employed to get authorization for the referendum extending a current half-cent sales tax to pay for Jacksonville’s pension debt … assuming that collective bargaining closes at least one of the current pension plans.

Representing the Duval County School Board: Scott Shine, one of the members of the conservative wing of the board. Ironically enough, the current school board chair, Paula Wright, was linked with a possible bid for the seat that Tracie Davis now holds in Tallahassee. However, Wright ultimately demurred on a run.

College presidents will speak, such as University of North Florida head John Delaney and Florida State College Jacksonville president Cynthia Bioteau.

Both schools have seen rapid expansion and evolution of their missions in recent decades, with UNF growing from its former commuter school status to becoming a destination institution. Meanwhile, FSCJ is now a four-year college that has long since outgrown its 20th century reputation as the ultimate in fallback schools.

State driven PECO funding has been good to UNF. $40 million went to the biology building in 2012. In 2016, $11 million more was allotted to refurbishing Skinner-Jones Hall, one of the campus’ original classroom buildings, built in 1972.

Another interesting speaker: Penny Thompson of UF Health – Jacksonville.

With uncertainty looming over the future of subsidized health care, both due to questions about Low Income Pool funding and vagueness about what the Donald Trump administration wants to do about Obamacare, Thompson’s call for funding from a conservative legislature will be worth watching for specifics.

For those who can’t get enough of legislative delegation meetings, the First Coast Legislative Delegation will convene on Thursday morning at Jacksonville University’s Public Policy Institute.

“I want to get their mind in the perspective of understanding the region and different sectors as it relates to past, present and future goals,” State Sen. Travis Hutson, who is organizing the conclave, told the Florida Times-Union.

National politics, political legacies, & the Jacksonville pension debate

Steve Zona, the head of the Jacksonville branch of the Fraternal Order of Police, got some backup over the holiday weekend from leaders of the state and national FOP in the biggest debate his union has had in some time.

They conveyed a clear message: the FOP has support in what looks to be a protracted period of collective bargaining with the city of Jacksonville.

“President Zona, thanks for filling me in on the details of your pension issue, I agree it is an issue of national concern and the 325,000 members stand with our Brothers and Sisters in Jacksonville,” wrote Jay McDonald, National FOP Vice President on Zona’s Facebook page.

State FOP President Robert Jenkins, meanwhile, offered a similar message of support.

What this all means: perhaps for the first time in the Lenny Curry administration (unless one wants to count the professional opponents and proponents of expansion of the Human Rights Ordinance who came to Jacksonville earlier in 2015), the Republican mayor is going to face national pressure to cave on his unprecedented plan to move all newly hired Jacksonville city employees to defined contribution plans.

Curry has some national backup, of course: central among that, the Koch Brothers’ front group Americans for Prosperity, which has set up a landing page saying that it’s “time to fix Jacksonville” in the light of the $2.85 billion debt caused by the “broken pension system.”

The page is intended to generate emails of support of Curry’s plan; thus far, despite publicity for the page in local news outlets, the emails received haven’t broken the server.

One interesting email generated from the page: that of fire union head Randy Wyse, who sent the same four paragraph form email everyone else did. When we asked him about it, he said that he was unable to erase the pre-populated message from the website.

Wyse, like his public safety counterpart Steve Zona, does not support the defined contribution proposal.

The heads of the public safety unions, who did support the referendum to unlock revenue from a sales tax extension pending new plans for new hires, want different plans for those hires: specifically, inclusion in the Florida Retirement System.

Collective bargaining sessions last week (Tuesday for the fire and rescue workers, Wednesday for police, courthouse staff, and corrections) established the parameters of the debate well.

Tuesday’s session saw the Jacksonville Association of Fire Fighters far apart from the city’s negotiators.

Calling the current pension plan “arguably the worst defined benefit plan in the state of Florida,” Wyse noted that when Mayor Lenny Curry “proposed the half-cent sales tax, we were supportive.”

Wyse sold the deal on the “knife and fork club” circuit, and the union put in $60,000 to sell the referendum.

However, once the referendum had passed, the differences between management and labor were laid bare.

The city wanted to offer a 14 percent raise over the course of three future years (7 percent in FY 18, 3.5 percent in the next two fiscal years).

A proposal to move employees to the Florida Retirement System: rejected, as the city insists upon defined contribution and the bargaining on a local level.

After that Tuesday session, Mayor Curry had a press conference in the large conference room in his city hall suite; fire union head Wyse was there.

The press conference was brief, giving the media a few quotes to counterbalance the drama involving city negotiators earlier in the day.

Curry explained his aversion to FRS.

FRS is “out of the city’s control,” Curry said, saying the city “can’t control costs” under the state model.

“It would be very easy for me to travel that road,” Curry said, but that would be “ceding the control of costs to the state.”

Wednesday saw Steve Zona making the case for police, courthouse workers, and correctional officers.

Armed with PowerPoint presentations and a compelling narrative, the stark case was made: in terms of “real” dollars, the value of a police officer’s salary has gone down since the 1980s. And a 401K would expose those officers to major risk given inevitable market under-performance.

Correctional officers are particularly exposed to risk, Zona contended; the average C.O. dies at 58 years of age, with lives truncated by exposure to risks of violence in the cell block, and exposure to communicable diseases.

Meanwhile, Zona contended, the city bears little risk in embracing the FRS solution; employer contributions have gone up just 4.1 percent over the last 17 years.

When asked about that Wednesday, Curry took issue with Zona’s assertions on a number of fronts.

Regarding the FRS option, the mayor reiterated his opposition — despite what Zona saw as minimal risk to the city.

“We’d be ceding control to the state,” Curry said. “and FRS doesn’t guarantee a solution.”

****

Throughout the country, there have been pushes to move public safety workers — specifically new hires, who have no expectations of the future being guaranteed — into 401K plans.

The standard response from labor: mobilization.

An article in Law Enforcement Today from earlier this decade explains how the strategy played out in Illinois.

“Here in Illinois, these groups have been very successful blocking some legislation that would have been very harmful to both state and municipal pension plans.  These groups are only successful because they have united law enforcement officers and firefighters statewide.   Without that sort of strength our pension funds would have been ruined.  When detrimental legislation comes up these groups have been able to garner such huge support that the state legislators have had no choice but to stop and listen…

“During one such legislative push an Illinois State Representative was quoted, as saying all the representatives were receiving so many calls about the legislation that no one could make any outgoing calls from their office lines. If you are a young officer, do not make the mistake of thinking it will be fine just because retirement looks so far away to you,” the article advises.

Locally, politicians can expect a similar pressure.

We understand that there may be police officers showing up, as they tend to do when their interests are challenged, to council meetings and the like. And they may have wives and kids with them to illustrate the effects of potential benefit changes on real people.

That is a strategy that historically has worked with this current iteration of the city council, many of the members of which are politically pliable. That has been a condition the mayor’s office has enjoyed, as the “strong mayor” model (accentuated by persuasive senior staff members) has allowed the city council to trust what this mayor and his team has wanted to do.

Until now, this council hasn’t dealt with the real pressures exacted by organized labor. And in the only debate the current council faced that roiled the community — the one over the Human Rights Ordinance — most of the members of the council were unwilling to commit to a position one way or another on proposed legislation, even as council chambers teemed with passion on both sides. The LGBT community members who say legislation is needed to protect them, and members of churches and other advocates of limited government who caution against “unintended consequences.”

Will there come a point in the debate when the council steps up and takes the side of the police unions over the mayor?

For Curry, the commitment to defined contribution plans for new hires has many benefits.

It “takes the city out of the pension business,” creating a Jacksonville solution to a problem many cities will face going forward.

Being able to accomplish this solution, meanwhile, would write the mayor’s political ticket going forward.

During almost a year and a half in office, Curry’s word has been law in city hall.

But what is clear: the pension reform collective bargaining will be his toughest task yet.

 

 

 

 

 

 

Jacksonville police union: defined benefit pensions are not ‘dinosaurs’

Tuesday saw the Jacksonville Association of Fire Fighters slamming a pension reform proposal from City Hall. Wednesday saw the Fraternal Order of Police doing the same, offering its own proposals for police and corrections that include raises for all employees, pension benefits rolled back to 2015 levels for extant employees, and the Florida Retirement System pensions for new hires.

While union heads walked arm in arm for months with Mayor Lenny Curry in pushing County Referendum 1, which allowed for the extension of a 1/2 cent sales tax contingent on pension reform, the fork in the road came after the August plebiscite.

It started hot, with a discussion of how the majority of communities the size of Jacksonville have defined benefit plans.

“The city underfunded our pension,” FOP Head Steve Zona said, noting that with the surtax passed, “there is no financial crisis.”

Zona added that “if that surtax is realized, it will fund all three pension plans.”

Police union representatives noted in response to figures provided by city representatives, since the 1980s, the real dollar value of police salaries have actually gone down.

A “top end” police officer makes just over $62,000.

They then went on to argue that a 401K (the desired benefit plan of the Curry administration) is not viable for a police officer, given the risk of the job truncating career lifespans. Moreover, a market crash would provide even more adverse impacts.

The average increase per annum for a police officer: 1.4 percent over the last 16 years.

The police union contended also that JSO officers deal with the burden of being in the homicide capital of the country, facing increased risk of assault, and with the force overall bearing the impacts of attrition (#1 in the state, with resignations nearly tripling between 2008 and 2013), and increasingly difficult recruitment and training (including outsourcing training of some officers to nearby counties).

There currently are 34 vacancies on the force, and JSO officers haven’t had a pay raise since 2008, even as the purchasing power of the dollar has eroded.

Meanwhile,  Jacksonville’s starting salary is over $12,000 — or 33 percent — below the average starting salary in major Florida metros. Salary, insurance, pension contributions — all are deemed “not close to competitive.”

The police union contends that it would take a 17 percent raise to restore the entry-level officer to 2008 levels. This is especially troubling since, to fill a training class of 30, 300 officers have to be hired.

The replacement cost per officer: $100,000. Meanwhile, JSO competes with other counties that offer signing bonuses and cover Social Security.

With crime high and the quality of Jacksonville schools low, the union contends that effective and well-compensated law enforcement is especially important.

“Our current violent crime rate,” Zona said, “is the highest in the state and almost double the national average … we’ve been doing more with less, and because of this, our officers have been in danger.”

Zona, ahead of presenting a wage proposal, reiterated the lack of pay raises for eight years, and his union taking a pay cut years ago.

The beaches and airport police, he added, all make more than Jacksonville officers do.

“The offer you put on the table asks our officers to forget the last two fiscal years happened,” Zona said, adding a question: “Does the mayor intend to offer a more competitive insurance package for current employees?”

Insurance costs have “skyrocketed,” said Zona.

He then presented a wage proposal. 10 percent raises from FY 18 to FY 20, with a retroactive 3 percent raise going back to 2014, “which makes us a little bit competitive” with peer agencies.

From there, a pension proposal was presented, rooted in the context of the 2015 ordinance approved by city council that set a seven year agreement between police and fire and the city.

Zona noted that “pensions for police officers are not dinosaurs, not archaic … they are the market for public safety.”

Zona noted that Mayor Curry said that public safety members have “built their lives” around “promises” from the city.

“Our members already work in a city more dangerous than most … targeted for wearing a uniform … sit in a car, doing your job and they ambush you,” Zona said.

“Our members have earned and deserve a secure retirement,” Zona continued, noting that the Florida Retirement System is “stable” with “little risk to the city.”

Zona cited the task force report from the JSO, released earlier this week, that argued for a “competitive and reliable pension plan.”

Without that, problems with police service will be exacerbated.

Zona wants pension benefits restored to pre-2015 levels, ensuring that employees hired since then will have the same benefits as those hired previously.

New hires would be placed in the Florida Retirement System, which would “realize the terms of the referendum legislation.” Contributions would be 10 percent of salaries.

“If the mayor wants to be out of the pension business, this needs to be a 20 year deal,” Zona added.

City negotiators, after a pause, came back with “adjustments” to their previous proposal, asking for models from the police union.

The wage offer: increased to 2 percent for this year, 7 percent for next year, and 3.5 percent for each of the next two years.

The city still does not want new hires funneled into the FRS, remaining committed to the defined contribution scheme.

Combining classifications of current employees – bringing all current employees into the same class – is a point the city is willing to discuss, however.

The mayor, said city negotiators, is averse to the FRS because benefits would be defined by the Florida Legislature, and Jacksonville would be a “very small piece of that population.”

The city also is averse to “risk” imposed by not being a bargaining partner because of this scheme.

Zona pressed for more specific detail on the risk assessment, but detail wasn’t provided.

So he then provided it: employer contribution in FRS has risen just 4.1 percent in 17 years, which he asserts represents “very little risk” to the city.

“We want out of the pension negotiation business,” Zona said. “We don’t want it to be subject to politics in Tallahassee. There’s politics here too. You guys want to negotiate pensions with us every three years.”

Curry, meanwhile, “won’t be a mayor past eight years.”

Zona notes that previous mayors “failed miserably” in maintaining the integrity of pensions, and that the stable FRS offers “very little risk,” especially compared to the risk officers face every day.

Proposals were also rolled out for judicial officers and bailiffs. A 3 percent retroactive raise for judicial officers, and 2 percent for bailiffs, was the bargaining position going back to October 2014. From there, annual raises of 7, 6, and 5 percent would be granted, in 2017, 2018, and 2019 respectively.

After a break, the police union negotiators and the city negotiators returned to the table to discuss pensions for corrections officers.

The scenario Zona outlined was just as dire as that on the police side: low pay, stressful conditions (including exposure to physical violence and health problems, including communicable diseases), and high turnover.

Zona noted that no corrections officers in Florida have 401K plans.

Duval has the third largest jail population in the state, but in terms of starting pay for corrections officers, the county is 54th in the state.

Leave benefits: even worse. 55th out of 67 counties.

Adult AIDS and tuberculosis cases can be found in jails, and the average correctional officer lives to be 58, dies soon after retirement, and suffers issues related to substance abuse and family dysfunction.

“They took a 3 percent pay cut, just like everyone else,” Zona said, and “they haven’t had a pay raise since 2008.”

Zona extended a proposal: 10 percent increases in FY 18 through 20, with a retroactive pay raise of 3 percent — exactly the same as police officers. And all new hires would go to FRS.

“The same proposal on the police side, for the people humping it every day in corrections,” said Zona.

The city came back with the same proposal for corrections that it had for police, which left Zona “disappointed.”

FRS, Zona said, is “pretty low risk” for the city. And the savings plan?

“You work thirty years. You’re beat up physically, you’re beat up mentally, and the market crashes. What happens to their savings when the market crashes?”

Curry, in a phone conversation Wednesday, took issue with Zona’s assertions on a number of fronts.

Regarding the FRS option, the mayor reiterated his opposition — despite what Zona saw as minimal risk to the city.

“We’d be ceding control to the state,” Curry said. “and FRS doesn’t guarantee a solution.”

Curry noted that the city offer was “deservedly generous,” pointing out the raises of 7 percent in the first year, 3.5 percent in the subsequent two years, and a 2 percent one time increase.

Officers, Curry said, “have been neglected with no raises for years.”

“They’ve earned this, they deserve this … real money for real people who get up and go to work every single day

“This mayor is putting real money on the table. Period,” Curry said.

Curry also noted that, contrary to Zona’s assertions, that collective bargaining would have to happen every three years per state law.

The glad tidings of August, the rosy projections — all seem to have faded with the realities of negotiation, and a familiar retrenchment of management and labor positions.

For his part, Zona is playing it cool, as evidenced by comments he made in a gaggle.

Regarding the Koch Brothers‘ Americans for Prosperity group taking an interest in pensions locally, Zona said “ask them where they’ve been at the last ten years.”

Zona also had a message for the mayor.

“We want him at the table. The room will be full of police and corrections officers who don’t agree with him.”

Jacksonville pension proposal: A ‘shock’ to firefighters

Tuesday saw senior staff from the city of Jacksonville locked in negotiations with representatives from the Jacksonville Association of Firefighters.

Spoiler alert: those negotiations won’t be wrapped up in time for Thanksgiving. The fire union seems to prefer switching to the Florida Retirement System’s pension plan; the city likes defined contribution.

That is a huge gap.

****

Collective bargaining has become a focus of the Lenny Curry administration, especially in light of the August referendum that requires closing of the current plans for new hires to unlock a guaranteed revenue stream years from now, from a half-cent sales tax that otherwise would sunset.

Union heads and city leaders presented a united front in getting approval for the referendum in Tallahassee, and in marketing the referendum in August.

However, collective bargaining is where the rubber hits the road. And what is clear is that the defined contribution model pushed by Curry and the fourth floor of City Hall is at cross purposes with at least one union, which sees the security of defined benefit pensions as essential to recruit and retain quality workers.

Jacksonville Association of Fire Fighters head Randy Wyse laid the facts on the table Tuesday in collective bargaining with the city.

The proposed pension agreement from the city of Jacksonville, offering defined contribution plans for new hires, is not good for his department.

Wyse noted the media had examined the proposal, which came as a “shock to a lot of firefighters.”

“Looks like a lot of people have looked at the plan,” Wyse said, name dropping The American Spectator magazine and Americans for Prosperity.

Wyse noted his union has played ball with the city for nine years, pointing out that firefighters took a 2 percent pay cut in the John Peyton administration, and supported “whatever the pension fund agreed to.”

Calling the current pension plan “arguably the worst defined benefit plan in the state of Florida,” Wyse noted that when Mayor Lenny Curry “proposed the half-cent sales tax, we were supportive.”

Just as Curry “burned a lot of political capital” pushing the pension plan, “so did we.”

The firefighters spent $60,000 marketing the Yes for Jacksonville referendum, and Wyse himself spent “hours upon hours” pushing the plan at “every knife-and-fork club there was.”

“Your proposal,” said Wyse, “will not recruit or retain” workers.

Wyse already spotlighted force attrition: 11 people have left in the last six months, for “better pay and better pensions elsewhere.”

Five interviews with new recruits were cancelled, over uncertainty over pension and benefits.

“I’m moving on to Orlando, Tampa, wherever it might be,” Wyse said regarding this workforce talent.

There are gaps between the union and the city on multiple issues, including projections of a consistent 7 percent rate of return and whether death benefits are in the plan or not.

Another sticking point for Wyse: a judicial decree from the federal court that pension benefits can’t be touched for seven years.

“We’re not waiving any of our rights,” Wyse said. “We’re not saying we’re not willing to talk, but we’re not waiving any rights.”

“I’ve got some real issues with no answer,” Wyse said to city negotiators, regarding the federal court agreement.

Another issue Wyse had: pension reform agreed to in 2015 is supposed to hold for seven years.

The fire union did have a proposal ready, and after some discussion among city negotiators, they agreed to not use the proposal “offensively” against the union.

****

A press release from the fire union laid out the objections to the proposal, which “does not qualify as a plan to either fully compensate or retain current employees to acceptable levels.”

“Jacksonville cannot afford to be a turnstile city for firefighters/paramedics,” the release continued.

The IAFF proposal posited a “one-time lump sum consideration” of 5 percent for 2016, for firefighters, engineers, lieutenants, and captains. As well, employees classified as Group II members under the 2015 agreement (those hired after June 30, 2015) would be changed to Group I. That classification allows for a five-year vesting period and retirement after 20 years of service.

COLA would be returned to 3 percent per year under the fire union proposal. The Deferred Retirement Option Program rate of return: 8.4 percent per year.

****

City negotiators had a verbal response to some components, with others to be taken back under advisement.

The proposed move of Group II under Group I: under advisement.

A proposal to move employees to the Florida Retirement System: rejected, as the city insists upon defined contribution and the bargaining on a local level.

Death benefits would be “comparable” to what current employees have under the defined benefit plan, said city negotiators.

COLA increases would be 14 percent recurring and 2 percent non-recurring over the course of five years.

****

“I’m very disappointed in the quick rejection of our formal retirement proposal,” Wyse said.

“The mayor said on Day 1 he wanted out of the pension business,” Wyse said, noting the Florida Retirement System proposal would accomplish that.

Wyse added that Clay County firefighters were watching, with one chief saying that “if [Jacksonville] goes to FRS, we’re going to lose everybody.”

Wyse reiterated issues with recruitment on the police side and retention on the fire side.

The city, meanwhile, balked again at the FRS proposal, not wanting to “leave it to the Legislature” to determine benefits.

Wyse and city negotiators talked about the level of risk assumed by the parties.

“What I perceive to be your risk: zero. There’s no risk to the city in your proposal,” Wyse said. “You’re just saying ‘here’s some money’ and all the risk is on the employee.”

“Risk to me is what you don’t know,” Wyse added.

Wyse notes the dangers firefighters face, such as running into burning buildings, getting shot at, and so on.

“We take on that risk unknown,” Wyse said, noting that firefighters wear bulletproof vests now, something he never expected to be the case.

Wyse noted that the firefighters are at 2006 wage levels, and sees the city’s proposed raise — which he and his team framed as 1.8 percent per annum — as a “lot low” and not aligned with the “commitment we’ve had from Day 1” from the city regarding pension reform.

As the noon hour approached, the discussion became less polite and more animated, with Wyse at one point questioning whether the city proposal is a pension plan at all.

Lenny Curry: Yes to defined contribution, no to FRS

In the wake of a contentious negotiation session between the Jacksonville Association of Fire Fighters and city negotiators, Mayor Lenny Curry called a Tuesday afternoon presser to reiterate his team’s negotiating position on Jacksonville’s pensions.

Essentially, it boils down to a commitment to 401(k)-styled defined contribution plans for new employees. And it rules out the Florida Retirement System.

Curry affirmed his “commitment to public safety workers,” with “budgets that reflect that,” and reaffirmed his vow to “solve the pension crisis once and for all” and get the city “out of the pension business.”

However, the Florida Retirement System — which negotiators from at least some city unions see as an option — is a nonstarter for Curry.

FRS is “out of the city’s control,” Curry said, saying the city “can’t control costs” under the state model.

“It would be very easy for me to travel that road,” Curry said, but that would be “ceding the control of costs to the state.”

Curry also reaffirmed his commitment to the defined contribution model, which led the fire union chief to question if that even qualified as a “pension” in Tuesday’s negotiation.

“My negotiating team expressed my views loud and clear,” Curry said.

Curry vowed to “work together” with labor representatives, saying there already is a “generous offer on the table.”

There has been some disagreement about how generous that offer is.

Curry’s team advanced a 14 percent compensation increase in negotiations with the fire union, which they framed as a 1.8 percent annual raise and called “insulting.”

Curry said he was a “little surprised that was viewed as insulting by leadership,” adding that the rank and file “don’t all feel that way.”

Negotiations with the local Fraternal Order of Police occur Wednesday morning, and it will be interesting to see how that leadership receives Curry’s position.

 

Agenda set for city of Jacksonville bond rating trip

In 2015, the city of Jacksonville’s annual bond rating trip to New York City was a success, one which improved the city’s credit ratings and allowed the Lenny Curry administration to trumpet its successes well into 2016.

Among the accomplishments: Better Jacksonville Plan sales tax revenue upgrades in February to A+ from S&P and Fitch, with a A1 from Moody’s in that category; a March upgrade to AA in excise tax revenue from Moody’s; a July Fitch AA long-term credit rating and an AA issuer credit rating predicated on expectations the city will “continue to demonstrate a prudent level of fiscal management” and “continue to moderate the impact of its pension liability on the annual budget;” similar upgrades in the special revenue rating in August; and an upgraded commercial paper rating in September.

The itinerary for the 2016 bond ratings agencies trip to New York is now set, and departure for Mayor Curry, Chief Administrative Officer Sam Mousa, CFO Mike Weinstein, and Treasurer Joey Greive is slated for Wednesday, Dec. 7.

This sets up pivotal meetings on Thursday and Friday of that week.

Thursday sees meetings with Fitch and Moody’s. Friday offers some time with S&P.

Curry, a CPA by trade, was able in 2015 to make the ratings agencies feel confident about Jacksonville’s outlook, a confidence augmented by the passage of County Referendum 1, which unlocked the possibility of a dedicated sales tax to pay off Jacksonville’s $2.85 billion pension debt.

What will this year hold for the city’s appraisals by the ratings agencies?

Former TRUE commissioner blasts Jacksonville for post-hurricane cleanup

In Jacksonville, the TRUE Commission (Taxation, Revenue, and Utilization of Expenditures) advises the city on fiscal policy.

A recent email to city leadership shows that, while you can take a commissioner off of the TRUE Commission, that doesn’t necessarily divest that person of vigilance.

Patti Anania, a former TRUE Commission member and wife of a defeated city council candidate from 2015, expressed displeasure with dilatory post-storm cleanup in the hardscrabble Arlington neighborhood.

“The City of Jacksonville has really let down its residents since Hurricane Matthew.  It was bad enough that some residents and businesses have had to wait six weeks to have small piles of debris picked up. But, when an entire street’s regular household garbage gets missed and the residents do their due diligence by calling 630-CITY and also put in care tickets online the next day and for every day afterwards,” Anania writes.

“We then are told on Friday 11/18 that ‘they have until next Tuesday to pick it up’ is unacceptable. Tuesday is our regular scheduled pickup day. This is outrageous, for what we pay in contract fees to the solid waste companies this type of service should never happen.”

Anania then asserted that in her neighborhood, “very little bulk items (couches, furniture and other normal items) be removed. This contributes to the blight here in Arlington.”

Anania urges review of relevant contracts related to solid waste collection, while noting — as residents of Arlington do — the neighborhood is mired in a seemingly perpetual cycle of decline.

“The residents of Arlington were told almost two years ago, Feb. 11, 2015, by former Mayor Brown and JU’s President Tim Cost that the Renew Arlington Initiative was going to bring Arlington back to life. Arlington is worse now than it was then,” Anania observes, “with anchor restaurants and businesses such as Neros, Outback at Regency, Sears, Belk, Bed Bath & Beyond, and Walgreens all closing their doors.”

Jacksonville’s pension reform efforts get national attention

Jacksonville is wrestling with a pension crisis decades in the making. And national media and political pressure groups are taking notice.

The venerable American Spectator magazine — a bible of movement conservatism — waded into the Jacksonville public pension debate last week, throwing sharp elbows at the Northeast Florida city’s pension crisis.

The Spectator hit on Jacksonville is part of a larger series discussing how “municipalities are also being hit with unprecedented pension debt.”

“Baby boomers are retiring. Some state and local budgets allocate more funds for pensions for retirees than they use for actual services and current worker pay. Once again, the younger generation is saddled with debt from a previous profligate era,” writes the Spectator’s William Patrick.

“Jacksonville’s unfunded pension obligations have blown a hole in the city’s finances and saddled residents of Florida’s most populous city with billions of dollars in debt and no ready way to pay it,” Patrick writes, without paying any heed to August’s County Referendum 1.

The “Yes for Jacksonville” referendum authorized the extension of Jacksonville’s half-cent sales surtax and dedicate it to funding the $2.8 billion unfunded pension liability, contingent on negotiated pension reform after collective bargaining with the city’s unions.

The Spectator article doesn’t discuss this, however. Instead, it savages the city for a lack of “accurate and transparent accounting data,” claiming “the city doesn’t have enough money to pay its bills”, that “the city is still hiding about $90 million in unfunded retiree health care benefits,” and that the city has a “debt burden … estimated at $6,100 per city taxpayer.”

“According to Jacksonville’s comprehensive annual financial statements, the city has $14 billion in assets. However, more than two-thirds are capital assets, such as roads, buildings, and land, leaving only $3.5 billion available to pay $5 billion in total obligations,” claims the Spectator.

“The 1.6 billion shortfall represents compensation and other costs incurred in prior years that should have been paid in those years. Instead these costs have been shifted to future taxpayers,” a report the Spectator cited from Truth in Accounting asserted.

Truth in Accounting CEO Sheryl Weinberg was unsparing in her critique of Jacksonville.

“If Mayor Lenny Curry and his administration want to address the city’s financial situation, the first thing they should do is publish accurate and transparent accounting data. The citizens of Jacksonville deserve an honest report on the city’s finances,” she said.

Ironically, this is something the Curry administration has sought to provide.

The city commissioned an audit from Ernst and Young shortly after Curry’s election; the audit pointed to the existential threat pension costs pose for the city.

“At 46 percent funded status, Jacksonville has the lowest pension funded status for the Police and Fire pension plan compared to other Florida cities included in the analysis. At 55 percent funded status, Jacksonville has the second-lowest total pension funded status for total consolidated pension plans,” the audit noted.

Without pension reform, the audit continued, Jacksonville would face long-term pressures on the stability of the city’s pension fund.

Without pension reform, the audit continued, Jacksonville would face long-term pressures on the stability of the city’s pension fund.

In a Monday conversation, Curry took issue with reporting from the American Spectator on this issue.

“It would appear to me they didn’t do their homework,” Curry said, noting that he’s been very vocal about the crisis created by unfunded pension liabilities for two years now, and has, with “clarity and transparency,” advanced a “solution tied to reform,” one that imposes “no additional burden” on taxpayers.

While “critics, so-called experts, and academics” pontificate, Curry is advancing “solutions grounded in principles” that he believes in.

“They wrote a story as if it’s a newsflash that Jacksonville is in a financial crisis, when I’ve been screaming at the top of my lungs that the crisis is here and must be dealt with now,” Curry added.

“We report with transparency and clarity … in accordance with [GASB] accounting rules and standards.”

Referring to the numbers used in the American Spectator report, Curry noted that they were “created and communicated” and “disclosed” by the administration … which counters the assertion from the conservative website that the city was not providing “accurate and transparent” accounting data.

The American Spectator, meanwhile, is not the only national entity taking an interest in Jacksonville’s pension negotiations.

Americans for Prosperity created a website (jaxfix.com) which allows interested parties to send form letters to members of Jacksonville’s city government, including the city council.

The website says it’s “time to fix Jacksonville” and its “broken pension system,” and includes a call to action: a form email that can be sent to elected politicians in the city.

The text exhorts site visitors to let Curry “know you appreciate him working to fix Jacksonville’s pension system problems,” and to let “the city council know that they should stand with Mayor Curry and get to work fixing the broken pension system.”

“Your city council works for you,” reads the AFP webpage, “not for Unions or special interests that are trying to keep Jacksonville broke.”

Curry said his political team has no involvement in this effort; that said, he’s “not surprised that groups would take notice” and he expects “that this will get more national attention.

Curry reiterated previous assertions that Jacksonville’s model of pension reform – which projects to be rooted in defined contribution plans for new hires, with current employee benefits guaranteed by a dedicated revenue stream after collective bargaining – could be a “model” for other cities facing similar pension issues.

One such city facing looming catastrophe: Dallas, Texas.

The New York Times reports that municipal bankruptcy may be on the horizon for Dallas, as the “city’s pension fund for its police officers and firefighters is near collapse and seeking an immense bailout.”

Risky investments and a tendency of older retirees to cash out their holdings have left Dallas seeking a $1.1 billion bailout – which does not even address the whole problem.

“As I’ve been saying for two years,” Curry added, “the crisis is here. It’s real.”

Dallas, like Jacksonville, didn’t get into its predicament instantly.

And Curry – despite the carping of the critics and their “soundbites” – is resolute in facing his city’s challenge.

“I’m facing the reality we’re in. We’re going to solve this,” Curry said.

Curry’s hope: that collective bargaining is completed in time for the next budget.

As those following Jacksonville’s situation know, renegotiated terms for new hires are a necessary prerequisite for the revenue that the ½ cent sales tax extension would allow in future decades, and – just as importantly – the guaranteed revenue source that sales tax extension provides

Show Buttons
Hide Buttons