05/01/2024

Local governments grapple with increasing pension costs before higher tab comes in 2018

In South Lake Tahoe, roads are crumbling, and the city is struggling to find ways to repair years of damage caused by harsh weather and snowplows. Orangevale residents worry that fire crews won’t arrive quickly enough in an emergency after their local fire station was closed during the recession.

Despite an economic recovery, local government leaders in California say rising pension costs have made it more difficult to restore some programs they cut during the recession.

The Sacramento Metropolitan Fire District, for instance, expects to pay $34 million in retirement costs this year, a 26 percent jump from 10 years ago, accounting for inflation and excluding a big increase in employee contributions.

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