Eureka City Council Budget Meeting
I watched 45 minutes or so of the Eureka City Council meeting on Access Humboldt last night. Eureka Police Chief Andy Mills had a slide presentation of his ideas for budget cuts. Then council folks had a question and answer session with him.
The only mention I saw made of the pension problems leading to the budget cuts were by Chief Mills towards the end of his slide show. He had a suggestion of switching to defined contribution 401K style retirement plans for new hires with a question mark at the end of it. I don't recall anyone asking any questions about that.
You'd think that would be of primary interest to the council. Then again, in fairness to the council, perhaps they feel the pension issue is water under the bridge and they have to deal with the resulting shortfalls regardless?
posted by Fred Mangels @ 7:03 AM
6 comments
6 Comments:
The pension issue comes from state funding cuts, leaving the Eureka holding the bag. Very little choice in what has to be done.
Switching to a 401K makes sense because it leaves the city with less administrative duties.
Switching to defined contribution pensions certainly could help, but I'm not sure how much. Probably depends on other things.
I know Cotati was one small town going bust over pensions. They went ahead and created a two tiered pension system- new hires to defined contributions, or something along that line. Yet even with the new retirement system for new hires and a new sales tax increase, they said they were still in trouble and passed yet another sales tax increase.
Haven't heard anything from them since.
Switching to a 401k makes sense, to Wall Street... so the 1% can get the rest of the money. 401ks were developed to help folks who make a lot of money defer their tax obligation until they makes less money, it was never intended for everyday working people. Most people don't understand the stock market, why is it a good idea for ordinary folks to be investing in stocks and bonds? We should all be working towards defined pensions, instead of fighting people who have pensions. What will be next get rid of Social Security, so we can all be on General Aid?
Nailed it 11:36.
You don't have all that good of an example to follow in how Calpers has handled this whole thing. Granted, there's plenty of blame to go around, but the current pension problems don't speak well to your idea of one entity being in charge of all defined benefit plans.
Getting rid of all the support staff at EPD in a time when crime is on the rise and citizens are getting ripped off daily is a poor decision. Cut other places. How about cutting the monies that are given to The Eureka Chamber of Commerce and the Humboldt County Convention and Visitors Bureau.
(Might want to check and see HOW MUCH COUNTY Convention and Visitors Bureau,..you might be shocked with the answer.
Cut at the top..not at the very bottom.
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