The Davis Enterprise Letter to the Editor
January 31, 2014Re: EDITORIAL: Fiscal crisis looms for our fine city
The recent editorial, "Fiscal crisis looms for our fine city" published on January 26, 2014 stated that the misguided polices by CalPERS made the city's (Davis) pension costs appear to be affordable.
This is an unjust exaggeration of CalPERS role concerning the city's budget challenges. The City of Davis is similar to many other local governments in California that are facing difficult fiscal issues amid the worst economic recession in history.
CalPERS administers retirement plans, we do not determine the pay and benefits of city employees. These decisions are made by city officials in consultation with city employees. Our job is to ensure the retirement benefits promised to city employees are properly funded.
Major pension reform measures were enacted under Governor Brown through the Pension Reform Act of 2013 that will help local governments, like the City of Davis, and the state manage their pension obligations. Local governments face a myriad of economic challenges as the nation recovers from a fiscal crisis and pension obligations are just one piece of a large puzzle that need thoughtful examination by city managers.