Sunday, March 01, 2009

The County & the Parkway

While certainly understanding the importance of paying public employees well, it is tragic that leadership has not also planned well enough to ensure priceless public resources—like the American River Parkway—continue to see annual raises in needed funds for basic maintenance and operation (especially public safety), which instead of being sustained, have been dropping every year over the past decade.

An excerpt from the Sacramento Bee article.

“In the last decade, Sacramento County has seen its payroll costs boom even as staffing levels stayed the same.

“But now that the economy has crashed, those raises and new employee benefits are becoming a big part of the budget debate as officials try to close a $55 million shortfall in its $2.2 billion general fund this fiscal year, ending June 30.

"The largest burden we have are those increases," County Executive Terry Schutten said.

“This year, the county budgeted $1.45 billion for about 14,000 positions, almost 50 percent more than it budgeted in fiscal year 2002 for roughly the same number of workers.

“At the same time, enhanced retirement benefits added significant debt – about $450 million – to the county.

“As a result, the county went from shelling out about $38.6 million in fiscal year 2002 to repay pension obligation bonds to an estimated $79.6 million this year.

“County officials project the deficit for fiscal year 2009-10 beginning July 1 could easily reach $100 million. The county is expecting to spend more than $92 million in principal and interest payments on pension obligation bonds in 2010.”