Nevada County Scattershots – 3 March 2012

George Rebane


Friend Bob Crabb’s 3mar12 Union cartoon above captures well the spirit and goals of Agenda21 (q.v.), and the brave new world we are being herded to pell-mell.  (BTW, Bob now has his own blog which you can visit through the ‘Our Links’ panel on the right.)

And while I’m in the mood, in today’s Union there is a letter to the editor from a Conni Parker of Penn Valley, a certified binary pea brain.  She congratulates fellow intellectual Nancy Eubanks in a former piece “for outlining the many government programs that work”, and puts all people into two boxes when it comes to preference in governance – those who think more government is better, and anarchists.  If you happen to prefer a more limited government, then the Parker and Eubanks filters immediately assign you to the anarchist box, and ask how you’d like to drive on unpaved streets, and do without police protection – “if you don’t like government, try not having one.”  Oh well …

What I really wanted to comment on is the excellent article – ‘$120 million net pension and benefit liabilities can’t be ignored’ – by CPA Dai Meagher in today’s paper.  A couple of weeks ago at a Board of Supes meeting, Dai and I expressed concern about the real level of the county’s unfunded liabilities, which was already disturbing back in 2007, and 2009 when Mike McDaniel brought this up to the Supervisors.

(Unfunded liabilities are now a recognized scourge that threatens all levels of government in the nation, the result of profligate entitlement and public service pensions spending.  Only the diehard and fundamentally transformed progressives deny this conclusion that is even acknowledged in socialist Europe.)

It was again pointed out to us that the county’s fisc has been prudently managed, and implied that any concern people have about the county having an unfunded liability problem is a “rural myth” propounded by ignorance of the true state of affairs.  Such rumors are totally unfounded.

Well, as Dai makes clear, it turns out that they are not rumors, and the concern is indeed founded and in spades.  What specifically irks me is the hubris with which both the electeds and senior staff discuss such matters with us peons.  When I asked county CFO Joe Christoffel about the seemingly sanguine attitude with which the county was dealing with what looked like a financial tsunami headed toward us, his reply was that the county was making the payments required by CalPERS, and since that agency (projecting 7.75% annual portfolio growth) has not raised any red flags, therefore there is nothing to worry about.

McDaniel and I were co-authors of the 2007 SESF unfunded liabilities report, and I have been writing about my concern in these matters for the last five years.  At this time, no one is accusing the current electeds of having run up the county’s obligations to what may actually be over $250M when CalPERS’ 7.75% urban myth is exploded in the new reporting standards that kick in next year as required by the Government Accounting Standards Board (GASB).  My heartburn is that I don’t see 1) any clear acknowledgement of the problem, and therefore 2) no plan for dealing with it.


As a minimum, I want to see acknowledgement of the problem in the clear format shown above (first  presented in my 26feb12 post).  With that in hand, county taxpayers can make up their own minds on what questions to ask our county government, or just continue keeping their heads where the sun don’t shine.

Comments

[Gregory]

I don't see current employees or retirees accepting less than the unrealistic promises made by past politicians and managers. I think a rational swing at the problem would be to divvy up CalPERS and STRS to all stakeholders, converting to a 401(k) style account, with those with the most modest retirement expectations taking a minimal hit, and the most outrageous expectations (six figures? get real) taking a real haircut. No more defined benefit; defined contribution, and what is there after the last regular paycheck is all that they get.

Since that won't happen, I suggest cities, counties and school districts just continue to paper over the problem until bankruptcy can force a new deal that will probably look a lot like the above.

[George Rebane]

Gregory 509pm - Agreed.

[Todd Juvinall]

If the Eubanks lady is the one connected to the Tahoe National Forest boss, perhaps we can better understand her position on government. When people have no frame of reference about where the money comes from it becomes clear why she s so misguided.
What is fascinating to me about the liberal mind is if you don't agree with them on an issue they then accuse you of anarchy. What she doesn't understand is we are for a well managed, Constitutional government. I think she overlooks who pair=d the taxes that paid for the road.

[Dixon Cruickshank]

My compliments to Crabby, that is so very good - the only better I remember is - the you know which one - LOL

These ladys must hang out with Frisch, he always does that, remember the new building requirment thread. As soon as anyone said to cut them back it was the building anarchy speel.

[Barry Pruett]

Last week, Lassen County funded all of their unfunded liabilities. They took their tobacco money and other funds and solved the problem. With a population of almost 35,000 and slightly over 400 employees, Lassen County’s unfunded portion was $6.7 million in 2009. Over three years, the Lassen board of supervisors worked hard and finally last week funded the liabilities.

Nevada County has a population of 99,000 and county employees of over 750. In 2009, the amount of promised benefits in Nevada County was $248,063,046 minus the amount available to fulfill the promises of $164,137,323 created an unfunded liability in Nevada County of $83,925,723.

Note: This math was reviewed in September 2009 with Joe Christoffel from Nevada County and it only includes the MISC Employee Pension plan (it does not include the Public Safety Employee Pension plan).

I am fearing a problem in Nevada County which leadership does not desire to solve. See alcoholics doing the 12 step program...step one is admitting that you have a problem. There is an $80 million problem, but they would rather deny its existence.

[billy T]

Step One is admitting you have a problem. But, they messed up on another step as well. It says "sought thru prayer and meditation", not prayer and medication.

[Bonnie McGuire]

Bob's cartoon cutely tells it as it is...George, You're right about "those who put all people into two boxes when it comes to preference in governance – those who think more government is better, and anarchists." Seems to be a total lack of historical knowledge. Didn't the anarchists within the British Empire write and sign our Constitution and Bill of Rights into law? We all celebrate the event every Fourth of July!

[Douglas Keachie]

Verification of Crabb's cartoon --> http://news.cnet.com/8301-17852_3-57394877-71/12-year-old-sues-school-district-over-facebook-profile-search/?tag=postrtcol;dis