A.G. Gancarski
Wednesday saw the Jacksonville-centric Discretionary Sales Surtax bill clear the Senate Rules Committee (SB 1652), scheduled at the same time as the third reading in the House (HB 1297).
Central to the pitch: bill sponsor Rob Bradley and Mayor Lenny Curry, whose sales job gets better with every committee stop… especially important because Curry will have to sell this to the public.
The Rules Committee heard Senator Rob Bradley making a pitch that has been refined in recent weeks, and one familiar to those who have followed our accounts of the previous Senate committee stops for the bill.
Senator Bill Montford asked Bradley if he was confident that the mistakes made in bygone eras would not recur.
Bradley noted that the House bill mandates a 10 percent employee contribution, and codifies the separation of the pension board from negotiating.
“That is where we need to go to provide safeguards moving forward,” Bradley said, adding that “we’re all walking together, holding hands.
Arthenia Joyner wanted to know why this bill needs to pass now, when the money wouldn’t be available until 2030. Bradley noted the “dedicated revenue stream, even in the future” as a material change to the actuarial calculation, freeing up money for basic services, police presence, et al.
“The idea is to lower that annual payment,” Bradley said, not mentioning the specific benefits of amortization and deferred contribution.
Bradley noted that “if the surtax passes… we’re starting fresh… wrapping up the sins of the past… and moving forward.”
Lizbeth Benacquisto wanted to ensure “protecting the notion of reaching the goal,” yet had questions about the 10 percent employee contribution being a statewide prerequisite.
Bradley’s answer boiled down to saying that if they don’t agree to that condition, they won’t get benefit of that revenue stream, adding that it’s “appropriate to address this on a statewide issue” given that there are older pension plans besides Jacksonville.
Lenny Curry, Jacksonville’s Mayor, noted that the referendum will be either August or November, but “it will be this year.”
He affirmed that the 10 percent contribution requirement, now in the House bill, would include existing employees, pending referendum passage and collective bargaining. This is in line with the 2015 statute for employees hired after June 19, with other contribution hikes to 10 percent contingent on pay raises.
“We started our discussion with stakeholders early, knowing this would be a difficult lift,” Curry said, citing other options, like reorganization of debt and millage rate allocations, as horrible options that wouldn’t solve the problem.
Curry’s ask: “using out year revenues to deal with the benefits we have to pay in 2030 and beyond.”
Savings, Curry added, would defray the $300 million budgetary obligation for unfunded liability in the city’s billion dollar budget, devoting money to public safety, “crumbling infrastructure,” and UF Health, among other issues.
Curry also noted that bargaining, with the Police and Fire Pension Fund, has been outside of state law, not happening every three years, and not in a way that could address market fluctuations.
“Short of me being able to serve as mayor for the next 40 years, and I wouldn’t want to do that,” said Curry, this pension tax is the best way to address these longstanding problems.
And if the problem is not solved, Curry said, Jacksonville is in dire straits.
“The situation in Jacksonville really is dire. It has been ignored for years,” said Curry.
“I will spend all the political capital that I have to solve this,” because without this revenue, Jacksonville “will not be able to provide basic services.”
The bill “closes three defined benefit plans and gives us the ability to invest in the things we need to as a city,” Curry added.
Representatives from the Jacksonville police and fire unions spoke in support, as did Jacksonville Beach Mayor Charlie Latham.
Senator Jack Latvala spoke in support of the bill.
“Very seldom in my 14 years here have I seen someone take on a problem as boldly as Mayor Curry,” Latvala said, noting the “very serious situation” Jacksonville faces, which will drive leaders to “get this fixed and get out from under it as quickly as they can.”
Senator Don Gaetz affirmed support also: “if this action is not taken, Jacksonville is the next Detroit. It’s that simple,” Gaetz said of Jacksonville’s local “appropriate solution.”
“If nothing is done over the next three or four years, [Jacksonville] will have a choice between default and bailout,” Gaetz added.
Gibson, then Joyner, affirmed support also. The latter recognizing that “the people will have to decide” to accept or reject this option.
The bill passed unanimously.
The bill, which has cleared all Senate committees, will move onto the Senate calendar.
