The economy is doing well and tax revenues are rising – so why are three of San Diego’s largest government agencies facing massive hits to their bottom lines?
The city of San Diego estimates it must slash $47 million to $67 million in spending, San Diego County may have to cope with $100 million in new costs and San Diego Unified is staring down at least $124 million in cuts – an especially dire challenge because the reserve fund has nothing to spare.
Some of their troubles are common.
First, all three agencies are dealing with rising pension costs. State and local pension fund leaders are reducing long-term earning expectations, which increases the amount of money employers must contribute to fulfill retirement promises for current and former employees.