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Committee warned PERS side-account shortfall could add roughly $2.4M to district costs
Summary
Staff told the Seaside SD 10 budget committee that an expiring side account, underperforming investments and higher wages contributed to roughly $2.4 million in additional PERS costs; staff said about $2.0 million of that is the immediate PERS increase.
District staff explained that PERS (Public Employees Retirement System) pressures are a primary driver of proposed reductions in the 2026–27 budget. Susan told the committee that Seaside purchased a side-account bond in the past "was $10,000,000. It saved the district $4,000,000," but that the side account is expiring earlier than expected due to higher wages and underperforming investments.
Staff described the components of the projected increase: "approximately 2,000,000 of the 2.4 is the additional money, that increase in PERS." Committee members asked for a clearer bucketed breakdown of the $2.4 million — how much came from side-account expiration, investment shortfalls and unfunded liabilities — and staff committed to publishing a spreadsheet with the line-item breakdown for members and the public.
Staff and members discussed long-term options: issuing another bond to establish a new side account (noting that high interest rates may make that less attractive now), building a savings plan, or spreading impacts over multi-year changes. Staff said the 2026–27 reductions aim to avoid midyear cuts in 2027–28 by planning ahead and using available reserves strategically.
Provenance: discussion of side-account expiration and the $2.0M portion of the $2.4M figure (topicintro SEG 636; topfinish SEG 741).
