{"id":52494,"date":"2018-07-08T00:01:16","date_gmt":"2018-07-08T07:01:16","guid":{"rendered":"https:\/\/calmatters.org\/?post_type=commentary&p=52494"},"modified":"2018-07-08T00:01:16","modified_gmt":"2018-07-08T07:01:16","slug":"coy-about-taxes-and-pension-costs","status":"publish","type":"post","link":"https:\/\/calmatters.org\/_zh\/commentary\/2018\/07\/coy-about-taxes-and-pension-costs\/","title":{"rendered":"Coy about taxes and pension costs"},"content":{"rendered":"

California\u2019s economy may be booming, but throughout the state, local governments\u2014including school districts\u2014are feeling the financial pinch and asking their voters to approve new taxes of one kind or another.<\/p>\n

There were 111 local tax measures on the June primary election ballot, the vast majority of which passed, according to municipal finance guru Michael Coleman of CaliforniaCityFinance.com<\/a>.<\/p>\n

Dozens more\u2014sales taxes, parcel taxes, marijuana taxes, utility taxes and hotel taxes\u2014are being planned for the Nov. 6 general election.<\/p>\n

So why are so many local entities feeling strapped?<\/p>\n

Local officials will tell you, if you don\u2019t quote them by name, that it\u2019s mostly because their mandatory payments into the state\u2019s two big pension funds are soaring.<\/p>\n

The California Public Employees Retirement System (CalPERS) and the California State Teachers Retirement System (CalSTRS) lost tens of billions of dollars during the recession a decade ago and have never fully recovered.<\/p>\n

CalPERS has steadily and sharply increased financial demands from cities, counties and school districts for their civil service workers while the Legislature and Gov. Jerry Brown cranked up contributions to CalSTRS from school systems to cover teacher pensions.<\/p>\n

However, while seeking more money from their voters to cover their ever-increasing retirement costs, local officials have been very reluctant to say it\u2019s for pensions, fearing backlash at the polls. Rather, on the advice of high-priced \u201cconsultants,\u201d they promise the new taxes will enhance such popular services as police and fire protection and parks.<\/p>\n

We can expect more such propaganda this fall, leading up to the election.<\/p>\n

One example is in Sacramento, whose mayor, Darrell Steinberg, wants his voters to reauthorize a half-cent sales tax that will soon expire and to add another half-cent.<\/p>\n

In a recent speech, he called his proposal \u201ca real game changer\u201d that would finance affordable housing, shelters and services for the homeless, job training in low-income communities and small-business incentives.<\/p>\n

However, simple arithmetic tells us otherwise. The additional half-cent of sales tax would generate less than $40 million a year, city budget documents say, while by the city\u2019s own estimate, its mandatory payments to CalPERS are expected to increase from $81.6 million a year to $129 million by 2023.<\/p>\n

To its credit, the \u8428\u514b\u62c9\u95e8\u6258\u871c\u8702\u62a5<\/a> pointed out the looming effect of the city’s rising pension costs. The state\u2019s other news media should follow suit as their local officials tout the benefits of increasing taxes. Reporters can easily calculate projected pension cost increases from CalPERS data<\/a> and the potential revenues from sales tax data<\/a>.<\/p>\n

Meanwhile, one city just a half-hour\u2019s drive from Sacramento is doing it the right way, telling voters why it needs more money.<\/p>\n

Lodi also will place a half-cent sales tax increase on the November ballot and its officials are not shy about the reason<\/a>.<\/p>\n

Lodi City Manager Steve Schwabauer has been a leading figure in efforts to persuade CalPERS to moderate its demands, arguing that cities such as his will face insolvency unless they get relief or persuade voters to raise taxes.<\/p>\n

Schwabauer told the city council, before it voted unanimously to ask voters for the tax hike, that without it the city will see operating deficits beginning next year.<\/p>\n

\u201cThe cause of this, point-blank, is CalPERS and our pension fund, and I have spent at least two years of my life fighting with CalPERS,\u201d Councilwoman JoAnne Mounce said.<\/p>\n

Such candor may not make it easier to persuade voters, but it\u2019s the right thing to do.<\/p>","protected":false},"excerpt":{"rendered":"

As local government officials ask voters for tax increases, they are reluctant to tell them that the extra revenue is needed to cover pension costs. But one city is not being coy about it.<\/p>","protected":false},"author":73,"featured_media":32701,"comment_status":"closed","ping_status":"open","sticky":false,"template":"single-feature.php","format":"standard","meta":{"_acf_changed":false,"_stopmodifiedupdate":false,"_modified_date":"","newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","apple_news_api_created_at":"2018-07-08T14:59:05Z","apple_news_api_id":"14b444ee-eaae-4e99-93be-99386dd7f61a","apple_news_api_modified_at":"2018-07-08T14:59:06Z","apple_news_api_revision":"AAAAAAAAAAD\/\/\/\/\/\/\/\/\/\/w==","apple_news_api_share_url":"https:\/\/apple.news\/AFLRE7uquTpmTvpk4bdf2Gg","apple_news_cover_media_provider":"image","apple_news_coverimage":0,"apple_news_coverimage_caption":"","apple_news_cover_video_id":0,"apple_news_cover_video_url":"","apple_news_cover_embedwebvideo_url":"","apple_news_is_hidden":"","apple_news_is_paid":"","apple_news_is_preview":"","apple_news_is_sponsored":"","apple_news_maturity_rating":"","apple_news_metadata":"\"\"","apple_news_pullquote":"","apple_news_pullquote_position":"middle","apple_news_slug":"","apple_news_sections":["https:\/\/news-api.apple.com\/sections\/49654979-841c-3b60-b9c1-b123dc98bd2d","https:\/\/news-api.apple.com\/sections\/3bbf8641-5cbf-34b0-af04-5f25ac2136e5"],"apple_news_suppress_video_url":false,"apple_news_use_image_component":false,"_spanish_translation_id":0,"_is_translation":false,"_newspack_byline_active":false,"_newspack_byline":"","newspack_content_restriction_is_exempt":false,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[58,63],"tags":[40117],"legislator":[],"bill":[],"newspack_spnsrs_tax":[],"coauthors":[4174],"class_list":["post-52494","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-commentary","category-dan-walters","tag-commentary","entry"],"acf":[],"apple_news_notices":[],"yoast_head":"\nCoy about taxes and pension costs - CalMatters<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/calmatters.org\/_zh\/commentary\/2018\/07\/coy-about-taxes-and-pension-costs\/\" \/>\n<meta property=\"og:locale\" content=\"zh_CN\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Commentary: Why local officials in California are coy about taxes and pension costs\" \/>\n<meta property=\"og:description\" content=\"As local government officials ask voters for tax increases, they are reluctant to tell them that the extra revenue is needed to cover pension costs. 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He began covering California politics in 1975, just as Jerry Brown began his first stint as governor, and began writing his column in 1981, first for the Sacramento Union for three years, then for The Sacramento Bee for 33 years and now for CalMatters since 2017. Dan is also the author or co-author of two books about California, \u201cThe New California: Facing the 21st Century\u201d and \u201cThe Third House: Lobbyists, Money and Power in Sacramento.\u201d He is a frequent radio show guest and occasionally appears on national television, commenting on California issues. Walters began his career in 1960 at the Humboldt Times in Eureka, California, a month before his 17th birthday, first as a newsroom aide and later as a police beat reporter. Having found his calling, he not only turned down a National Merit college scholarship but dropped out of high school, lacking one required class \u2013 ironically civics \u2013 to qualify for a diploma. Before moving to Sacramento to cover politics, he was the managing editor of three small daily newspapers. He has two adult daughters and three grandsons.","sameAs":["https:\/\/x.com\/DanCALmatters"],"birthDate":"1943-10-10","gender":"Male","jobTitle":"Columnist","worksFor":"CalMatters.org","url":"https:\/\/calmatters.org\/_zh\/author\/dan-walters\/"}]}},"parsely":{"version":"1.1.0","canonical_url":"https:\/\/calmatters.org\/_zh\/commentary\/2018\/07\/coy-about-taxes-and-pension-costs\/","smart_links":{"inbound":0,"outbound":0},"traffic_boost_suggestions_count":0,"meta":{"@context":"https:\/\/schema.org","@type":"NewsArticle","headline":"Coy about taxes and pension costs","url":"http:\/\/calmatters.org\/_zh\/commentary\/2018\/07\/coy-about-taxes-and-pension-costs\/","mainEntityOfPage":{"@type":"WebPage","@id":"http:\/\/calmatters.org\/_zh\/commentary\/2018\/07\/coy-about-taxes-and-pension-costs\/"},"thumbnailUrl":"https:\/\/i0.wp.com\/calmatters.org\/wp-content\/uploads\/2017\/05\/TAXES-Concept-Illustration-via-Flickr-e1530587048932.jpg?resize=60%2C60&ssl=1","image":{"@type":"ImageObject","url":"https:\/\/i0.wp.com\/calmatters.org\/wp-content\/uploads\/2017\/05\/TAXES-Concept-Illustration-via-Flickr-e1530587048932.jpg?fit=600%2C450&ssl=1"},"articleSection":"Dan Walters","author":[{"@type":"Person","name":"\u4e39\u00b7\u6c83\u5c14\u7279\u65af"}],"creator":["Dan Walters"],"publisher":{"@type":"Organization","name":"\u52a0\u5dde\u4e8b\u52a1","logo":"https:\/\/calmatters.org\/wp-content\/uploads\/2019\/07\/calmatters-logo_2x.png"},"keywords":["commentary"],"dateCreated":"2018-07-08T07:01:16Z","datePublished":"2018-07-08T07:01:16Z","dateModified":"2018-07-08T07:01:16Z"},"rendered":"<meta name=\"parsely-title\" content=\"Coy about taxes and pension costs\" \/>\n<meta name=\"parsely-link\" content=\"http:\/\/calmatters.org\/_zh\/commentary\/2018\/07\/coy-about-taxes-and-pension-costs\/\" \/>\n<meta name=\"parsely-type\" content=\"post\" \/>\n<meta name=\"parsely-image-url\" content=\"https:\/\/i0.wp.com\/calmatters.org\/wp-content\/uploads\/2017\/05\/TAXES-Concept-Illustration-via-Flickr-e1530587048932.jpg?resize=60%2C60&ssl=1\" \/>\n<meta name=\"parsely-pub-date\" content=\"2018-07-08T07:01:16Z\" \/>\n<meta name=\"parsely-section\" content=\"Dan Walters\" \/>\n<meta name=\"parsely-tags\" content=\"commentary\" \/>\n<meta name=\"parsely-author\" content=\"Dan Walters\" \/>","tracker_url":"https:\/\/cdn.parsely.com\/keys\/calmatters.org\/p.js"},"jetpack_featured_media_url":"https:\/\/i0.wp.com\/calmatters.org\/wp-content\/uploads\/2017\/05\/TAXES-Concept-Illustration-via-Flickr-e1530587048932.jpg?fit=600%2C450&ssl=1","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/calmatters.org\/_zh\/wp-json\/wp\/v2\/posts\/52494","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/calmatters.org\/_zh\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/calmatters.org\/_zh\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/calmatters.org\/_zh\/wp-json\/wp\/v2\/users\/73"}],"replies":[{"embeddable":true,"href":"https:\/\/calmatters.org\/_zh\/wp-json\/wp\/v2\/comments?post=52494"}],"version-history":[{"count":0,"href":"https:\/\/calmatters.org\/_zh\/wp-json\/wp\/v2\/posts\/52494\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/calmatters.org\/_zh\/wp-json\/wp\/v2\/media\/32701"}],"wp:attachment":[{"href":"https:\/\/calmatters.org\/_zh\/wp-json\/wp\/v2\/media?parent=52494"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/calmatters.org\/_zh\/wp-json\/wp\/v2\/categories?post=52494"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/calmatters.org\/_zh\/wp-json\/wp\/v2\/tags?post=52494"},{"taxonomy":"legislator","embeddable":true,"href":"https:\/\/calmatters.org\/_zh\/wp-json\/wp\/v2\/legislator?post=52494"},{"taxonomy":"bill","embeddable":true,"href":"https:\/\/calmatters.org\/_zh\/wp-json\/wp\/v2\/bill?post=52494"},{"taxonomy":"newspack_spnsrs_tax","embeddable":true,"href":"https:\/\/calmatters.org\/_zh\/wp-json\/wp\/v2\/newspack_spnsrs_tax?post=52494"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/calmatters.org\/_zh\/wp-json\/wp\/v2\/coauthors?post=52494"}],"curies":[{"name":"\u53ef\u6e7f\u6027\u7c89\u5242","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}