In 2015 Eureka started paying down its unfunded pension liability. These pension debt payments were $921,000 in 2015, $1 million in 2016, $3.9 million in 2017, $4.6 million in 2018, $5.4 million in 2019, and $5.7 million in 2020. Going forward, these debt payments will increase from $6 million in 2021 to $8.4 million in 2029, and are currently scheduled to continue until 2038. In 2015, Eureka cut $834,000 from the Eureka Police Department budget. Heading into budget talks in early 2020, EPD Chief Steve Watson talked of how EPD had seen a 19% reduction in staffing since 2016. Eureka followed up these previous cuts to EPD in its FY 2020-2021 budget with a funding cut of $1.1 million and loss of six more positions, including four officers, for EPD.
The rhetoric does not match the arithmetic. Pension debt payments are funding taken out of the budget and represent tax dollars that are not invested in the community and that citizens see no current services for. Not exactly keeping funding local. With so many governmental agencies in the same debilitated economic situation due to pension obligations, the economic evidence does not support the claim of governments being prudent in their spending. Constant increases in funding for pension obligations along with cuts to law enforcement and other services do not support the idea that tax dollars are the taxpayers’ dollars as a priority expenditure.
Author(s): Patrick Cloney
Publication Date: 2 June 2021
Publication Site: Times-Standard