The Orlando Sentinel editorial describes the improved funding available to Florida Schools and other agencies due to last year's pension reform implemented by Governor Rick Scott. He initiated a 3% employee contribution to pensions, which reduced direct employmee costs at schools and other agencies, releasing funds for other uses, AND starting the path for government employees to start contributing to their own pensions. Finally government employees are learning the harsh realities of costs of pensions and other benefits because now some of it is coming out of their pocket and not just provided FREE.
Read and learn:
Taxpayers benefiting from pension reforms
12:00 a.m. EDT, October 8, 2011
Pension reform has encountered its share of push back, no question about it. And understandably so.
However, lawmakers and municipal decision-makers who showed spine in proposing, defending and enacting necessary pension reforms this year, and the constituents and taxpayers who backed them, are being proved right.
We are all starting to reap some of the benefits as a result.
Because of Tallahassee's pension changes in this year's legislative session, school districts across Florida have as much as $819.4 million more to spend on other necessities. Counties in the Sunshine State picked up an extra $597.7 million to fill gaps, and to save on reductions on services. Broward County, for example, used $2.3 million in pension savings to avoid a two-day, unpaid furlough for county employees aroundLabor Day.
That said, we acknowledge that the cuts in the pension system come with notable pain. For state workers, who are now required to contribute into the system, it's equal to a 3 percent pay cut.
Having to make such adjustments in a down economic climate isn't easy. But, then again, it's a sacrifice their private-sector counterparts have long been making. That perspective is always necessary.
We understand, too, the frustrations of some public employee groups. During boom times, they watched city halls dole out revenues, sometimes for not the best of causes, rather than fully stock reserves for the eventual bust that was coming.
We don't disagree with that criticism. And now that the changes have been made, the onus on public officials to be more responsible and careful stewards over spending all revenue is greater than ever.
But look at the number of cities where salaries, pensions and benefits are eating up much greater shares of the total budget. Even with normal or better economic times, the rise in pension costs is simply unsustainable for many public entities.
What's encouraging, too, are signs that the public clearly understands what's at stake. That was evident Sept. 13 in Hollywood, when voters approved, in a special election, changes to the city's pension arrangements with city workers, firefighters and police. In a charged atmosphere, voters approved all three ballot items by clear majorities.
Those results should give state and municipal leaders across Florida confidence that the public, and the voters, are on their side. Social Security and Medicare may remain political untouchables, but pension reform has shown it will generate decisive popular backing.
