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District warns of roughly $2 million annual PERS cost increase; budgeting to start now
Summary
Fiscal staff reported that the PERS employer-relief provision (SB 849) will sunset, projecting employer contribution rates to rise and creating roughly $2 million in additional annual cost over the district's current $4 million PERS budget; staff will incorporate the increase into next year's budget.
Tony, the district fiscal presenter, reported that while most general fund revenues were close to projections, a significant PERS employer-rate increase is coming when the SB 849 relief sunsets. "Our current budget for PERS is 4 million. So, we're looking at an increase about $2 million above that," he said.
Board members and staff discussed cash-flow timing, the district's existing $3 million reserve, and an outstanding long-term PERS-related loan with one year left to service. Tony said staff will begin budgeting immediately for the higher contribution rates and will provide more detailed cash-flow information as requested. The board noted potential impacts on capital planning and program budgets and scheduled further budget work this month.
