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Who Is Left Holding LMSV $24 Million Bag?

The La Mesa Citizen Oversight Group strongly advocates that public sector governing bodies practice sound financial management. Among other things that means paying for current services with current revenues. It is far too easy for public officials, when money is tight, to avoid making tough decisions by deferring costs into the future. One instance of this practice is the promise to provide health care for retirees - without setting aside funds to pay for it. The La Mesa Spring Valley School District provides full medical benefits to retirees (not families) from the time they retire (as early as age 55) until they become eligible for Medicare at age 65. No money is put aside to pay for this post-retirement benefit so its' cost becomes an "unfunded liability". The most recent audit of the LMSV post retirement health benefit account estimates the unfunded liability for post retirement health care to be almost $24,000,000. Whether or not it is necessary or appropriate to pay for medical benefits after teachers choose to retire is not the subject here. Rather, our purpose is to make the case that when promises of future benefits - in this case post retirement health care - are made, they are paid for as they are earned and not made the responsibility of tomorrow's taxpayers. The audit mentioned above recommends that LMSV "…consider taking steps to establish a retiree fund … as soon as possible". It outlines the benefits of doing so: (1) improved return on investments (2) healthier District financial statements (3) lower (payments) in future years (4) more predictable and manageable cash flows and (5) greater economic security for District employees and retirees. We would add another: it is only fair for those receiving the benefit of a teachers' efforts pay for them. The La Mesa Citizen Oversight Group strongly urges that as long as the LMSV school District maintains a policy of providing post retirement benefits (of any sort), the advice of the auditor - to establish and fully fund an account to pay for them - be followed. It is wrong to leave future taxpayers holding the bag.

http://sandiegoreader.com/users/photos/2013/aug/11/51123/

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The La Mesa Citizen Oversight Group strongly advocates that public sector governing bodies practice sound financial management. Among other things that means paying for current services with current revenues. It is far too easy for public officials, when money is tight, to avoid making tough decisions by deferring costs into the future. One instance of this practice is the promise to provide health care for retirees - without setting aside funds to pay for it. The La Mesa Spring Valley School District provides full medical benefits to retirees (not families) from the time they retire (as early as age 55) until they become eligible for Medicare at age 65. No money is put aside to pay for this post-retirement benefit so its' cost becomes an "unfunded liability". The most recent audit of the LMSV post retirement health benefit account estimates the unfunded liability for post retirement health care to be almost $24,000,000. Whether or not it is necessary or appropriate to pay for medical benefits after teachers choose to retire is not the subject here. Rather, our purpose is to make the case that when promises of future benefits - in this case post retirement health care - are made, they are paid for as they are earned and not made the responsibility of tomorrow's taxpayers. The audit mentioned above recommends that LMSV "…consider taking steps to establish a retiree fund … as soon as possible". It outlines the benefits of doing so: (1) improved return on investments (2) healthier District financial statements (3) lower (payments) in future years (4) more predictable and manageable cash flows and (5) greater economic security for District employees and retirees. We would add another: it is only fair for those receiving the benefit of a teachers' efforts pay for them. The La Mesa Citizen Oversight Group strongly urges that as long as the LMSV school District maintains a policy of providing post retirement benefits (of any sort), the advice of the auditor - to establish and fully fund an account to pay for them - be followed. It is wrong to leave future taxpayers holding the bag.

http://sandiegoreader.com/users/photos/2013/aug/11/51123/

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4S Ranch Allied Gardens Alpine Baja Balboa Park Bankers Hill Barrio Logan Bay Ho Bay Park Black Mountain Ranch Blossom Valley Bonita Bonsall Borrego Springs Boulevard Campo Cardiff-by-the-Sea Carlsbad Carmel Mountain Carmel Valley Chollas View Chula Vista City College City Heights Clairemont College Area Coronado CSU San Marcos Cuyamaca College Del Cerro Del Mar Descanso Downtown San Diego Eastlake East Village El Cajon Emerald Hills Encanto Encinitas Escondido Fallbrook Fletcher Hills Golden Hill Grant Hill Grantville Grossmont College Guatay Harbor Island Hillcrest Imperial Beach Imperial Valley Jacumba Jamacha-Lomita Jamul Julian Kearny Mesa Kensington La Jolla Lakeside La Mesa Lemon Grove Leucadia Liberty Station Lincoln Acres Lincoln Park Linda Vista Little Italy Logan Heights Mesa College Midway District MiraCosta College Miramar Miramar College Mira Mesa Mission Beach Mission Hills Mission Valley Mountain View Mount Hope Mount Laguna National City Nestor Normal Heights North Park Oak Park Ocean Beach Oceanside Old Town Otay Mesa Pacific Beach Pala Palomar College Palomar Mountain Paradise Hills Pauma Valley Pine Valley Point Loma Point Loma Nazarene Potrero Poway Rainbow Ramona Rancho Bernardo Rancho Penasquitos Rancho San Diego Rancho Santa Fe Rolando San Carlos San Marcos San Onofre Santa Ysabel Santee San Ysidro Scripps Ranch SDSU Serra Mesa Shelltown Shelter Island Sherman Heights Skyline Solana Beach Sorrento Valley Southcrest South Park Southwestern College Spring Valley Stockton Talmadge Temecula Tierrasanta Tijuana UCSD University City University Heights USD Valencia Park Valley Center Vista Warner Springs
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