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Board hears concerns over SB78 pension amendments and potential local cost impact
Summary
Board members and Superintendent Jason Weber discussed SB78 changes that would raise PERS contributions from 22% to 24% and a later amendment that could let municipalities opt out; members asked for cost estimates and encouraged public comment.
Members of the Valdez City School District board discussed pending state legislation that could affect local retirement contributions and budgeting.
Superintendent Jason Weber summarized recent changes to SB78, saying the bill now includes an increase in PERS employer contribution from 22% to 24%. Weber said he expects the bill to reach the governor's desk and urged attention to potential local fiscal impacts, noting that the added 2 percentage points could materially affect district costs.
Board members asked staff for a fiscal estimate of how the change would affect district payroll costs and whether the proposed increase would represent tens of thousands or hundreds of thousands of dollars in local obligations. One board member called the 2% increase potentially equivalent to "one fewer teacher" per the district's staff-cost calculations.
Members also flagged a late amendment described in the meeting that would give municipalities an option to opt out of the defined benefit arrangement, a change members said could create unequal treatment between jurisdictions. The board discussed avenues for influence, including submitting official comments and encouraging public testimony during legislative public-comment periods.
The board did not take a formal vote or adopt a resolution on SB78 during the meeting; members requested staff provide cost estimates and, if appropriate, prepare suggested talking points for public comment.
