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Sacramento Allocates Budget Surplus As Unfunded Pensions Loom Large

Bob Moffitt / Capital Public Radio
 

Bob Moffitt / Capital Public Radio

The Sacramento City Council is expected to decide soon whether to use some of the City's $19 million surplus on beacon schools, neighborhood and community economic development plans, and a cannabis-equity program. The mid-year budget goes before the council's budget and audit committee Tuesday.

The City ended the last fiscal year with an extra $13 million and has $6 million in additional revenues from the first half of this fiscal year.

Interim Finance Director Dawn Holm says the City Council has already voted to spend $12 million on raises for City employees.

"We were up for negotiations with all but two of our labor units and we have settled with all of them," Holm says. "On Tuesday, Council approved those contracts. But, while they were modest increases for the most part, most unions got two percent and two percent, it's still faster than our revenues can keep pace at this time."

Holm says the latest estimate shows $791 million in unfunded pension liabilities. The year's budget already has $5 million set aside for future pension increases. She would like some of the expected surplus from the first half of this year to also be set aside.

Bob Moffitt

Sacramento Region Reporter

Bob reports on all things northern California and Nevada. His coverage of police technology, local athletes, and the environment has won a regional Associated Press and several Edward R. Murrow awards.   Read Full Bio 

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