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Business office warns of higher PERS costs and budget pressure in next biennium
Summary
Dr. Selma Hughes told the board that employer PERS rates and the unfunded actuarial liability (UAL) will increase in the 2025'7 biennium, putting pressure on the district's general fund. Staff urged proactive options (side account, bond) and promised further analysis on dollar impacts.
Dr. Selma Hughes of the district business office presented the fiscal close for 2023'4 and a quarterly review for 2024'5, and warned that employer PERS contribution rates and the unfunded actuarial liability (UAL) will increase going into the 2025'7 biennium. "As we approach that maturity date, the financial benefits [of earlier bonds] are reduced and we'll begin to see PERS contribution rate increases in the 25/27 biennium," Hughes said. She described prior steps the district took (series 2021a side account and earlier bonds) and said similar tools could be considered again.
Board members asked how the state budget treats PERS changes; staff said there is not an explicit automatic offset and recommended legislative outreach. Hughes and other staff offered to prepare more detailed dollar-impact scenarios and to hold public briefings. The district also briefed the board on the 1st quarter process, the audit in progress, and the broader statewide funding context.
