Dictos on retirement
A correction must be negotiated between the Board of Supervisors and the Retirement Board.
The Fresno County Retirees’ Association (FCERA) does indeed enjoy the highest benefits in the state of California. At the same time, Fresno County ranks 50th in per capita median income in the state. This is an anomaly. Retirement system costs are out of control compared to contributions because the employer (Fresno County) has not paid its fair share. The average return on money invested in the market has been 5% over the past 100 years. Yet the retirement board is making payouts on an “estimated” investment return of 8.2% and the Board of Supervisors tied its contributions to this fantasy rate of 8.2%. High “estimated” rates translate to lower employer contributions, while lower “estimated” rates require higher contributions. The County chose the former and balanced its budgets on the backs of the 7,000 employees and 4,000 retirees.
The huge double digit multi-year salary increases the current Board gave to the rank and file, under the guise of employee retention, is a plain and simple pay back to the unions for their support. As an accountant, I consider this a dereliction of duty which will eventually translate into layoffs, program cuts and service reductions. There is some possibility of reduced tax returns from the slowing housing market, plus future property tax reversals, but the CAO suggested tax receipts from the state had grown, so what is left? Salaries, position expansions, and added programs, all unfunded thanks to an out of control Board.