Local governments doing less at a higher cost

August 1, 2019

Local government agencies in California are offering fewer services and reducing employees numbers because of rising pension costs.

Median pension costs for local governments in California rose at a rate nearly six times that of local agencies nationwide between 2007 and 2016, according to data released by a UC Berkeley professor.

Sarah Anzia, an associate professor at UC Berkeley’s Goldman School of Public Policy, released a report compiling data on the pension expenditures of cities and counties across the United States. The report also discusses the impact of rising pension costs on local government budgets and services.

In a policy brief released in conjunction with the report, Anzia argued rising pensions costs, particularly in California, are resulting in the elimination of local government jobs.

“Local government is being transformed by rising pension costs, and as a result, citizens of California can expect a future in which city and county governments do less with more,” Anzia stated. “These changes are also not positive for government employees and their unions, because as local governments spend more on pensions, they are also cutting jobs.”

According to Anzia’s findings, local pension costs rose almost everywhere around the United States, but they increased at a much higher rate in California. Between 2007 and 2016, median pension costs nationwide increased by $1,216 per employee, while they rose by $7,022 per employee among California cities and counties.

Anzia attributes high public sector union membership and collective bargaining as major factors in pensions costs rising at a faster rate in California than across the country. Still nationwide, policymakers have made public employee pensions more generous and have failed to set aside enough money to pay for them, Anzia said.


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copperhead

Shocking…not.


shelworth

I remember hearing about cutting pensions for new government employees, and making them pay into Social Security and giving them 401Ks, 30 years ago! if they had only done it then…


DocT

Since We, the People are nothing more than cattle….and the ranchers and their ranch hands are the government and the large political donors….and since the ranchers and ranch hands need better pay and pensions…..


The obvious thing to do is look at the ranch’s assets and liabilities and figure out a way to pay the help!


Since, We, the People aren’t really important they should just have a one-time surcharge of 20,000$ for cattle who would likely fetch a market price of over 2 million dollars. There’s a lot of that type of cow around here.


There are many more ways to extract value from the cattle….that’s just one suggestion. The important thing is to pay the folks who vaccinate the cows, clean up after slaughter, round ’em up for transport, feed them, etc.


If you want the best and brightest, you’ve got to pay them! We all know that. So far, the best and brightest of SLO county have created this paradise. Let’s make sure they can get paid!


isoslo

Government employees care only for their personal financial gain, always been this way always will be. Don’t be shocked it is just human nature. But only a fool would expect otherwise. This is why we must always say no to tax increases. Maybe someday in the future the public will force government employees to be part of social security with a 401K option like the rest of the working American society.