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City Pensions: Crunch Time, Mayor
The Times-Union
September 19, 2008
Six union contracts are up for renegotiation, six tests confronting Mayor John Peyton in the months ahead. Will Peyton pass or fail when it comes to keeping costs in check?
The answer will affect the ability to deliver services for taxpayers for years to come.
Pension costs are growing faster than the city's ability to keep pace. The city is already on the hook for $765 million in pension costs that it can't cover.
The city is spending $56.3 million on pensions this year.
The size of the city's future liability hinges in part on reducing costs through negotiations.
City workers should be compensated fairly and competitively.
But a recent independent Florida TaxWatch study concluded the city's pension benefits are excessive and unsustainable.
An upcoming Jacksonville Community Council Inc. study on city finances will take on the city's pension system.
But it's showtime now for Peyton and his administration.
Negotiations on three key contracts regarding police, fire and professional workers are under way.
Those contracts are to expire at the end of the month. Other negotiations are coming with unions representing laborers; clerical, technical and administrative employees; and professional and nonprofessional supervisors. Those contracts end a year from now.
Curbing benefits for current employees is a difficult task, one filled with contention, legalities and political posturing.
Union members deliver votes, and City Council members need no reminders.
But council members should look beyond elections and put the city's financial future first.
And, at the least, the mayor must draw a hard line in curbing the benefits assured to future employees.
It is financial prudence.
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