Unfunded liability of pension funds tightens its grip around Oregonhttp://www.oregonlive.com/business/index.ssf/2012/06/pers_un...At Forest Grove School District, as at many districts across the state, the cuts keep coming. On the chopping block this summer: 12 more teachers, six more calendar days, special education staff, music and PE classes, counselors, staff for the English Language Learners program and funding for athletics.... the single biggest driver of budget cuts in Forest Grove, the one relentlessly forcing schools around the state to reallocate money out of the classroom, is the Oregon Public Employees Retirement Fund. Last year, the district's required contribution to PERS jumped by 160%. Next year, the bill will go up again. For all the employers [school districts and other government agencies] in the system, it will cost an extra $1 billion per biennium.That $1 billion statewide -- almost $700 per household -- will go to feed the pension system rather than public services. The base cost of PERS will reach its historical high, cresting the 2003 levels that were considered a crisis. Counting debt service on pension bonds and the 6% member contribution that many employers pay, PERS will eat 25 to 30% of employers payroll budgets. ___________________Can we borrow your governor to help bring fiscal responsibility to Oregon? Or at least can you send us a clone of him, quick?--fleg
Best Of |
Favorites & Replies |
Start a New Board |
My Fool |
BATS data provided in real-time. NYSE, NASDAQ and NYSEMKT data delayed 15 minutes.
Real-Time prices provided by BATS. Market data provided by Interactive Data.
Company fundamental data provided by Morningstar. Earnings Estimates, Analyst Ra