A.G. Gancarski
The big “heavy lift” for Jacksonville during the legislative session: getting Tallahassee’s go-ahead to “repurpose” the half-cent Better Jacksonville Plan sales tax, once it sunsets, to address the city’s $2.6 Billion Unfunded pension liability.
The bill cleared the second and final House committee on Wednesday. But a big takeaway: statements made by some skeptics on the committee, who had issues with various aspects of the deal, including benefits to retirees and the plan simply not putting enough money in the coffers to address that liability.
Curry, in a Thursday afternoon media availability, took issue with “some of the statements made” by skeptical lawmakers.
The half-cent sales tax “will over time in short order” remedy the unfunded liability burden, Curry said, adding that much of the current burden of “what we’re having to pay now” has to do with “out years.”
One school of thought: that the unfunded liability will be amortized.
Curry said that’s up in the air, dependent on the final legislation.
So far, the plan has cleared both House committees, and two of three Senate committees.
Local observers expect that there will be pushback locally headed up to the referendum, and that specifics will have to be provided of the pace at which this addresses the unfunded liability burden in order to make the sale to a tax-averse public.
Curry reiterated his aversion to a tax rate increase to address this issue, saying it “will not solve this,” and such a revenue source could be repurposed.
