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Pension-debt allocation under scrutiny; Clarkson says split near 49% schools, 51% city
Summary
CFO Troy Clarkson told the committee the city and schools' allocation of principal and interest on pension-obligation debt looks near 49% schools and 51% city; he asked DESE to meet and suggested an actuary review to settle multi-year net school spending calculations.
Troy Clarkson told the accounts committee that when the city examined pension-obligation debt allocations, a headcount method initially suggested a 60/40 split, but dollar-weighted pension payouts shifted the calculation to roughly 49% for the schools and 51% for the city. "When we looked at the actual dollars that were going, it was pretty even, about 50 50, 49% schools and 51% city," Clarkson said.
Clarkson said he has asked the Department of Elementary and Secondary Education (DESE) to meet and recommended the schools consider hiring an actuary to review the figures; he requested the city be part of scope-setting for that work. The committee members said recalculation could change net school spending determinations going back several years and involve "tens of millions of dollars," underscoring why the committee wants authoritative actuarial and DESE input before finalizing FY28 budget plans.
