From the St. Augustine Record
By MARCIA LANE
marcia.lane@staugustine.com
Leaders say it would mean deeper cuts, job losses
County and school officials in St. Johns County sound a little as if they’ve been sucker punched when asked about Gov. Rick Scott’s proposal to “recapture” savings from local governments.
Those savings came because of state pension changes that meant employees in the Florida Retirement System have to contribute 3 percent to their pensions for the first time. The change cost employees, but saved money for local governments across the state who in turn used it to balance their depleted budgets.
Now Scott wants to hold back the savings and use it for the FRS pension fund liability, which he wants funded at 100 percent. The fund is now 87 percent funded, a level that the State Board of Administration said is healthy.
Local officials say Scott’s proposal, if enacted, would mean less money coming from the state and that will mean even deeper cuts in local services.
“With all due respect to the governor, this is another example of hijacking funds that shouldn’t even be under the control of the governor and state legislature,” said St. Johns County Commission Chairman Ken Bryan on Monday.
He characterized it as another example of the state trying to “micromanage” local governments.
County officials say if the governor is talking about getting funds retroactively from last year it would equate to about $5.5 million. If Scott is just talking this year it’s around $3 million, which equates to the 3 percent county employees are now contributing, Bryant said.
“We’re assuming he’d want to go for the larger amount, the whole enchilada,” Bryant said.
School officials are equally concerned over what the loss of revenue will mean to the district’s schoolchildren.
Officials argue the governor has already recaptured the money.
“(Scott) would like 3 percent back, but our budgets were cut more than that last year. In my view we’ve already paid,” said Bill Fehling, chairman of the St. Johns County School Board.
Finance officials say the ballpark estimate is the school district lost $6 million because of less funding from the state. The worst-case scenario, say officials, is that they could be looking at another $6 million cut.
‘We already gave’
Last year there was an $859 million reduction in state funding for schools.
“We think we already gave,” said Chief Finance Officer Conley Weiss.
This year’s financial picture doesn’t look particularly cheery either since state revenue figures have been revised downward.
All of that means the fund balance that the school district has been using to protect schools from cuts to programs and personnel is being depleted at an accelerated rate. The 2013-14 school year has become what officials are calling “the new cliff” when the fund runs out and the district must start to make cuts to the educational system itself.
“We already don’t think it can last too much more than next year,” said District 1 member Bev Slough.
The governor’s plan and the drop in revenue would “really accelerate” when the balance runs out, she said.
“That’s really going to impact our classrooms — teaching positions, the ability to provide extra programs for kids, electives,” Slough said. “St. Johns will be faced with what other counties have had to do … because we’ve cut and cut and cut. The only thing that’s protected us has been our reserves.”
Slough said the governor’s desire to fund the FRS pension fund’s liability at 100 percent was “certainly a noble goal, but in these dire financial times it kind of makes you gulp.”
‘Cooler heads’
District 3 member Bill Mignon said the school district had hoped to be able to utilize the savings for the system and called Scott’s proposal “another shot in the shoulder for school systems.”
“I think it’s an insensitive situation for the governor to say we have to give it up,” he said.
While upping the pension plan was “commendable,” Mignon said it would “adversely affect school systems. … How are we supposed to pick up the slack?”
Fehling sees one bit of potentially good news.
“The governor wanted (the recapture) for this year and didn’t get it from the legislature. I’m hoping cooler heads will prevail and the legislature will not support his request,” Fehling said.
State Rep. Bill Proctor, R-St. Augustine, hasn’t looked into the issue closely, because he is involved in higher education reform plans.
“If what he’s concerned about is the long-range solvency of the retirement system, I can understand his rationale,” Proctor said.
Calls to Sheriff David Shoar were not returned. However, the St. Johns Sheriff’s Office saved $850,000, which it returned to employees in a one-time 3 percent bonus to offset the pension cut that the Legislature approved this year.
http://staugustine.com/news/local-news/2011-10-10/gov-scott-move-recapture-pension-savings-leaves-local-government-leaders#.TpTO172dZvo.facebook
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