720 N Broadway
Escondido, CA 92025
FEBRUARY 07, 2018
Greetings!

I t's February, which means budget talks are consuming the news. It happens every year, yet the Federal Government is in overtime playing financial kickball. A balanced budget, by definition, seems simple enough: it is a budget that has no budget deficit, but could possibly have a budget surplus. Of course we all understand that the government will NOT budget for a surplus...

What about our State, County, and City budgets? What is the biggest challenge our local governing bodies face when creating a balanced budget?

According to a commentary by Dan Walters, the California Pension Crisis is the Achilles' heel that could take many cities out of the game.

From one end of California to the other, hundreds of cities are facing a tsunami of pension costs that officials say is forcing them to reduce vital services and could drive some—perhaps many—into functional insolvency or even bankruptcy.

The system that manages pension plans for the state government and thousands of local governments lost a staggering $100 billion or so in the Great Recession a decade ago and has not recovered. The California Public Employees’ Retirement System (CalPERS) is rapidly increasing mandatory contributions into its pension trust fund to make up for those losses, cope with a host of rising expenses and, it would appear, stave off the prospect of its own insolvency.

If, as city officials fear, they get no relief from CalPERS or in the Capitol, and their pension costs continue to escalate to unsustainable levels, they have several options, some of which are already being pursued:

  • Negotiate lower levels of benefits with unions for pre-reform employees, to supplement the lower levels for new workers—an option that the pending state Supreme Court case could make more viable;
  • Negotiate contracts that shift a greater share of pension costs to employees, particularly in cities that have been picking up employee shares;
  • Reduce future obligations by making lump-sum payments, emulating a $6 billion extra payment that Brown included in his 2017-18 budget toward future state liabilities. Brown is borrowing the money from a state fund that invests extra cash, and some cities have floated “pension obligation bonds” to do the same;
  • Cut city services to fund special reserves for future pension cost increases;
  • Raise taxes;
  • Declare bankruptcy.

Keeping you informed,

Rorie Johnston
CEO

Read the entire article here:
MONTHLY EVENTS
Escondido Chamber of Commerce
| February 8, 2018 | 12PM - 1PM
Escondido Arts Partnership
| Febuary 8, 2018 | 5:00PM - 7:00PM
Escondido Chamber of Commerce
| February 12, 2018 | 12PM - 1PM
Bellamy's Restaurant
| February 21, 2018 | 11:30AM - 1PM
J & M's Family Restaurant
| February 23, 2018 | 7:15AM - 9AM
Speaker: David Zumaya
HIGHLIGHTED BUSINESS
The Escondido Arts Partnership Municipal Gallery (EAPMG) provides a destination for visitors in downtown Escondido and is home to over 400 local artists. The EAP offers free ongoing arts education, monthly exhibitions with free entry, and performance space to approximately 2000 visitors a month and operates a California State Certified Farmers' Market.

"The EAP provides an environment where all ages can learn about art and community issues through creative expression and hands-on exploration. As a community space it’s important for us to be socially relevant and address community issues in a fun and engaging way, which we choose to do through art. Focusing on programming with themes common to everyone is our key to drawing large crowds regularly. We anticipate an increase in interest and visitation to art shows with socially relevant themes to increase tourism and be part of a vibrant downtown Escondido and the San Diego region."

The Escondido Arts Partnership Municipal Gallery will also be hosting The Escondido Chamber of Commerce's Business After 5 Mixer on February 8th, 5pm-7pm.

AMBASSADOR OF THE MONTH
NEW MEMBERS
RIBBON CUTTING
Feb. 21, 2018 | 3:30PM

Visit  Website
Feb. 22, 2018 | 4:00PM

Go2grow is having a Grand Re-Opening!
326 S. Kalmia 
Escondido, CA 92025

Visit  Website
STAY INFORMED
LOCAL EVENTS
MEMBER BENEFITS
STAY CONNECTED #ESCONDIDO