Calif. Cities Struggle To Keep Up With Cost of Pension, Health Benefits
Despite efforts to control spending and adjust to the current economic climate, California cities are struggling to keep up with escalating public pension and health care costs, the Sacramento Bee reports.
Although some cities' revenue streams have stabilized or even are increasing, local governments are preparing for reduced funds as the state grapples with an estimated $15.4 billion deficit after the fiscal year starts on July 1.
Kerry Miller, Folsom city manager, said city officials estimate thatÂ there will be "several years of rather anemic growth."
Folsom has removed $1.5 million from the next fiscal year's general fund, but increased costs associated with health care and pensions are likely to offset those savings.
Meanwhile, Woodland City Manager Mark Deven said sales tax and other revenue sources are beginning to stabilize. However, he noted that those gains would not be enough to counter rising pension costs and more expensive health care benefits for employees (Kalb, Sacramento Bee, 4/22).This is part of the California Healthline Daily Edition, a summary of health policy coverage from major news organizations. Sign up for an email subscription.