Mayor Lenny Curry unveils plan for paying down Jacksonville's pension debt

[thelakelander]

Mayor Lenny Curry unveiled his plan for paying down the city’s huge pension debt when the City Council’s Finance Committee met Monday morning.

Curry said he favors extending the Better Jacksonville Plan’s half-cent sales tax, which is slated to expire in 2030, and using the additional sales tax revenue to tackle the pension debt, which is a heavy weight on city finances.

That option would require a change in state law because the local-option infrastructure sales tax used for the Better Jacksonville Plan does not allow the sales tax money to go for day-to-day expenses, such as pension obligations.

Full article: http://jacksonville.com/news/metro/2016-01-04/story/curry-plans-unveil-his-pension-fix-city-council-finance-committee?utm_source=eyepiece&utm_medium=web&utm_campaign=cxense&cx_navSource=eyepiece#cxrecs_s

[spuwho]

If the BJP tax expires then it would require a referendum to replace it with a similar size tax for operations.

What this is really saying is they cant extend the BJP tax and then direct it towards the pension.

This "solution" is certainly easy to swallow politically becuase it kicks the can down the road another 14 years, long after our leaders are out of office.

[tufsu1]

^ it is a serious cop out...and allows politicians to play semantics by saying they "didn't raise taxes."  This is too important, so just bite the bullet! 

[thelakelander]

How Mayor Lenny Curry built support for plan to pay down pension debt

By David Chapman, Staff Writer

Mayor Lenny Curry knew when he took office July 1 of the financial burdens in front of him.
The biggest? Figuring out how to pay down the city’s almost $2.7 billion in unfunded pension liabilities.

The debt and required annual pay-down drains money that could be used for quality-of-life improvements, infrastructure and Curry’s top priority, public safety.

After months of private discussions, he went public with his plan Monday.

Curry wants to extend the Better Jacksonville Plan’s 1/2-cent sales tax, scheduled to expire in 2030, for up to 30 years.

He wants to move future employees, including public safety members, to a 401(k)-style defined contribution plan. And he wants this decided by elected officials, not by voters in a referendum like when the infrastructure tax originally was put into place in 2000.

It was a problem he began reviewing during his transition. And this course, his Plan A, is one he decided on in the summer, shortly after taking office and meeting with his senior staff for possible solutions.

The plan starts with the Legislature. In December, he recruited two Northeast Florida legislators with a recent history of success on state pension reform.

“If Northeast Florida can’t get its financial house in order, it will have implications,” said state Sen. Rob Bradley. “This can fairly be described as a financial crisis that needs to be addressed.”

State Rep. Travis Cummings will be House sponsor of a bill expected to be filed by the end of the week.

Full article: http://www.jaxdailyrecord.com/showstory.php?Story_id=546790

[tufsu1]

I'm sorry, but this proposal is woefully inadequate and quite disappointing.  The Mayor is correct...our city is crumbling and the pension liability is a crisis.  So how about taking a stand, putting forth a serious proposal, and admitting that we need additional revenue (you know raise taxes)?

Local option sales taxes in Florida require voter approval - whether it be a new tax or extending an existing one.  And given that voters approved the BJP to fund infrastructure projects, using that money to pay down the pension debt should surely require going back to the voters.

Why not bite the bullet and raise the millage rate to fund the pension.  Alternately, if it seems easier to cop out, ask the voters to extend BJP to pay for infrastructure type projects....and then take the money we would have spent on infrastructure from the general fund and instead use it on the pension.

[mtraininjax]

raise the millage rate to fund the pension

Ah, raise the millage rate, that's the "original thinking" you counted on from Mayor Curry? Why not just raid JEA for millions? What happened to all the land that Mayor Brown had Renee Finley of Blue Cross Blue Shield inspect and build a spreadsheet for on the value and look to sell some it off? Why not just put the tax where it needs to be, on the backs of every person who buys anything in Jacksonville? Sales tax is more fair and equitable. Everyone pays for JSO and JFRD services, period, even those who buy cigarettes at the Shell station, but who may not pay taxes on a home because its worth less than the $50,000 SOS BS.

[Tacachale]

^Yeah, it's interesting of all things related to our pension fiasco that folks could jump on, this proposal is what's drawing that kind of response.

I think this is an interesting idea that's well worth pursuing. I think the issue is how he's selling it. It's not an extension, obviously, when the previous tax had a built in sunset that would require a huge amount of effort to do again. It's a new tax, but it has the benefit of not affecting taxpayers more than they're used to.

The millage tax is the other option. The problem with that is the same problem we've had so far: it's set by every year's budget, and thus subject to whoever's on the Council or in the Mayor's office - and many of them campaign on the promise of not raising taxes. The sales tax will be harder for newcomers to futz with or divert to other things. However, the if the sales tax plan doesn't work out, the millage tax is probably the only way we'll ever put a dent in it (until the next mayor cuts it back again).

[MEGATRON]

^Yeah, it's interesting of all things related to our pension fiasco that folks could jump on, this proposal is what's drawing that kind of response.

I think this is an interesting idea that's well worth pursuing. I think the issue is how he's selling it. It's not an extension, obviously, when the previous tax had a built in sunset that would require a huge amount of effort to do again. It's a new tax, but it has the benefit of not affecting taxpayers more than they're used to.

The millage tax is the other option. The problem with that is the same problem we've had so far: it's set by every year's budget, and thus subject to whoever's on the Council or in the Mayor's office - and many of them campaign on the promise of not raising taxes. The sales tax will be harder for newcomers to futz with or divert to other things. However, the if the sales tax plan doesn't work out, the millage tax is probably the only way we'll ever put a dent in it (until the next mayor cuts it back again).

He's selling it in the manner it has to be sold in order for it to pass.  I don't care how it's sold as long as it gets down.

[vicupstate]

Considering the revenues are not available for 14 years yet, how is this making a dent until then?  The millage rate was LOWERED in the good years, and had that not happened, the issue would never have occurred on the scale that it did.  A mileage increase is the best option.  It takes affect now, not 14 years down the road and it puts the burden on those that got the break, as best as it can be.

[Tacachale]

^Yeah, it's interesting of all things related to our pension fiasco that folks could jump on, this proposal is what's drawing that kind of response.

I think this is an interesting idea that's well worth pursuing. I think the issue is how he's selling it. It's not an extension, obviously, when the previous tax had a built in sunset that would require a huge amount of effort to do again. It's a new tax, but it has the benefit of not affecting taxpayers more than they're used to.

The millage tax is the other option. The problem with that is the same problem we've had so far: it's set by every year's budget, and thus subject to whoever's on the Council or in the Mayor's office - and many of them campaign on the promise of not raising taxes. The sales tax will be harder for newcomers to futz with or divert to other things. However, the if the sales tax plan doesn't work out, the millage tax is probably the only way we'll ever put a dent in it (until the next mayor cuts it back again).

He's selling it in the manner it has to be sold in order for it to pass.  I don't care how it's sold as long as it gets down.

True. I just don't think subtlety works very well in politics. He could just acknowledge that it's a new tax, but it has the benefit that folks won't get hit with an increase once it kicks in.

Considering the revenues are not available for 14 years yet, how is this making a dent until then?  The millage rate was LOWERED in the good years, and had that not happened, the issue would never have occurred on the scale that it did.  A mileage increase is the best option.  It takes affect now, not 14 years down the road and it puts the burden on those that got the break, as best as it can be.

Typically I'd agree, but that's also the problem: every subsequent council and mayor will have the opportunity to mess with the milleage rate again. We could be right back where we're at in short order. But, as I say, it's likely the only way to make any headway if the mayor's plan doesn't come together.

As for how it makes a dent now, it's based on the unfunded liability, which is calculated by projected costs decades in the future. The reason we pay so much from the general fund each year (a crippling amount, it's like $150 million) is that we don't have any other way to make it up. This would do that, and it would be harder for future pols to mess with than the conventional options.

[tufsu1]

Sales tax is more fair and equitable. Everyone pays for JSO and JFRD services, period, even those who buy cigarettes at the Shell station, but who may not pay taxes on a home because its worth less than the $50,000 SOS BS.

I agree.  Problem is raising local option sales tax requires voter approval in Florida, and Mayor Curry is trying to get permission to avoid a referendum.

[mtraininjax]

I think this is an interesting idea that's well worth pursuing. I think the issue is how he's selling it. It's not an extension, obviously, when the previous tax had a built in sunset that would require a huge amount of effort to do again. It's a new tax, but it has the benefit of not affecting taxpayers more than they're used to.

Its NOT a new tax if you are already paying for the tax. New tax? Really? Going from 7% tax rate to 7.5%, now THAT would be a new tax. I hav more math for you, if needed.

If you are paying for the taxed rate now, its not a new tax, its the same taxed rate. Just like the toll roads that never went away, the BJP tax will never go away, although the mayor should discuss a way to pay for the fixing of the main library out of the BJP funds since the old contractor is going belly up.

Where was "I'm with Alvin" during all of the thought process? Raiding JEA was a good deal then, why not now? Did Alvin Brown crawl under a rock and never surface? Where are all of his staff who thought raiding the JEA piggy bank was a good idea?

Mayor Brown was the head of the Republican Party of Florida, geez, he knows how to get stuff done! First City Council, then Florida Legislature. Easy Peasy, nice and neaty!

[Tacachale]

I think this is an interesting idea that's well worth pursuing. I think the issue is how he's selling it. It's not an extension, obviously, when the previous tax had a built in sunset that would require a huge amount of effort to do again. It's a new tax, but it has the benefit of not affecting taxpayers more than they're used to.

Its NOT a new tax if you are already paying for the tax. New tax? Really? Going from 7% tax rate to 7.5%, now THAT would be a new tax. I hav more math for you, if needed.

If you are paying for the taxed rate now, its not a new tax, its the same taxed rate. Just like the toll roads that never went away, the BJP tax will never go away, although the mayor should discuss a way to pay for the fixing of the main library out of the BJP funds since the old contractor is going belly up.

Where was "I'm with Alvin" during all of the thought process? Raiding JEA was a good deal then, why not now? Did Alvin Brown crawl under a rock and never surface? Where are all of his staff who thought raiding the JEA piggy bank was a good idea?

Mayor Brown was the head of the Republican Party of Florida, geez, he knows how to get stuff done! First City Council, then Florida Legislature. Easy Peasy, nice and neaty!

I support Curry, but this is a new tax, in that the previous BJP tax is expiring and Curry will have to create another through referendum or the legislature. However, you're right, the replacement tax won't be more of a burden on taxpayers when it kicks in. That fact is one of the things that makes it worth pursuing.

Iagree that it's interesting how much this plan is getting criticism from certain quarters that were silent when Brown' promoted his crazy pension plans, or even supported them.

[Noone]

How Mayor Lenny Curry built support for plan to pay down pension debt

By David Chapman, Staff Writer

Mayor Lenny Curry knew when he took office July 1 of the financial burdens in front of him.
The biggest? Figuring out how to pay down the city’s almost $2.7 billion in unfunded pension liabilities.

The debt and required annual pay-down drains money that could be used for quality-of-life improvements, infrastructure and Curry’s top priority, public safety.

After months of private discussions, he went public with his plan Monday.

Curry wants to extend the Better Jacksonville Plan’s 1/2-cent sales tax, scheduled to expire in 2030, for up to 30 years.

He wants to move future employees, including public safety members, to a 401(k)-style defined contribution plan. And he wants this decided by elected officials, not by voters in a referendum like when the infrastructure tax originally was put into place in 2000.

It was a problem he began reviewing during his transition. And this course, his Plan A, is one he decided on in the summer, shortly after taking office and meeting with his senior staff for possible solutions.

The plan starts with the Legislature. In December, he recruited two Northeast Florida legislators with a recent history of success on state pension reform.

“If Northeast Florida can’t get its financial house in order, it will have implications,” said state Sen. Rob Bradley. “This can fairly be described as a financial crisis that needs to be addressed.”

State Rep. Travis Cummings will be House sponsor of a bill expected to be filed by the end of the week.

Full article: http://www.jaxdailyrecord.com/showstory.php?Story_id=546790

After MONTHS of Private discussions. Where is Carla Miller and the Ethics Commission? How about one quote on 2014-769 and the forensic audit? How about one quote from anyone on the shakeup that is taking place on the Ethics Commission? Didn't a JUDGE rule the 30 year agreement invalid?

BJP-Better Jacksonville Pension
BJP-Better Just Pay

67 counties in the state of Florida
The Legislature is truly creating Entitlement County
Visit Jacksonville!

[edjax]

Sales tax is more fair and equitable. Everyone pays for JSO and JFRD services, period, even those who buy cigarettes at the Shell station, but who may not pay taxes on a home because its worth less than the $50,000 SOS BS.

I agree.  Problem is raising local option sales tax requires voter approval in Florida, and Mayor Curry is trying to get permission to avoid a referendum.

Per article in the T-U this morning it sounds like the actual legislation that was filed will require voter approval.