Updates

December 24, 2019
24 Dec 2019

Political Update – December 24, 2019

EDITORIAL: California town paying police more in pensions than salary

Las Vegas Review-Journal
December 8, 2019

To understand why public pension reform is urgent, look at California.

Despite a record stock market, CalPERS—the California government pension system — is only 71 percent funded. To make up the gap, it has been raising contribution rates across the state. Unlike in Nevada, where all participating governments pay the same rate, contribution rates vary in California. The amount some cities are paying is astronomical.

Rohnert Park is a small town 40 miles north of San Francisco. This year, contribution rates for its first- tier plan for police and fire employees are 110.9 percent of pay. That means for every dollar in salary, it’s contributing almost $1.11 to CalPERS. Next year, the rate will jump to 118.9 percent.

Last year, 15 public safety plans cost 70 percent or more of employee pay. This year, the number increased to 24. Next year, it’ll be 50, according to Ed Mendel at Calpensions.com.

A study from the League of California Cities found that pension contributions accounted for 8.3 percent of city spending in 2007. Last year, it was 11.2 percent, and by 2025, it’ll be 15.8 percent. Every dollar a government spends on pension contributions is one less dollar it has to spend on roads, parks or public safety.

Government agencies are already struggling to keep up.

“It is difficult to assess just how much strain current contribution levels are putting on employers,” CalPERS wrote in a report last month. “However, evidence such as collections activities, requests for extensions to amortization schedules and information regarding termination procedures indicate that some public agencies are under significant strain.”

Every government agency in California should be thanking President Donald Trump for overseeing a record-breaking economy. If the stock market weren’t soaring, contribution rates would be even higher.

*IMPORTANT*

Quote of
the week

 


Quote:

“In the last decade, contribution rates to the Public Employees’ Retirement System of Nevada for regular employees have increased more than 40 percent. Despite those increases, PERS is only about 75 percent funded. The upcoming problems this will create are perfectly predictable, but Nevada’s leaders have shown little interest in addressing them.”

Las Vegas Review-Journal

EDITORIAL: Democrat plans would cripple economic growth

Las Vegas Review-Journal
December 12, 2019

Economic growth is more than an abstraction. An expanding economy is a healthy economy, one that increases living standards, provides robust employment opportunities and strengthens the public fisc. This week, the U.S. Department of Labor released statistics revealing that the Trump administration is doing a pretty good job in this regard.

Keystone’s Mission:

To recruit, support and advocate for candidates for public office who support private sector job creation, low taxation, a responsible regulatory environment, and effective delivery of essential state services.

Keystone’s Mission:

• To focus on candidate support on state legislative races and the governor’s office.
• To oppose any form of corporate income taxes or other business taxes that discourage capital investment and therefore job creation.
• Support limiting Nevada state government spending to the rate of population growth.

P.O. Box 93596 | Las Vegas, NV 89193-3596

To ensure that you continue receiving email updates,

please add Info@KeystoneNevada.com to your address book or safe list.
Click here to unsubscribe 
Having trouble viewing this e-mail? View it in your browser