“We are charting a better and more prosperous course for our state and her people that will last for generations,” proclaimed Gov. Tate Reeves in his FY 2027 executive budget recommendations.
Somehow, he foresees this “prosperous course” without addressing the $26 billion PERS shortfall. Moodys has cautioned, “PERS is on a trajectory of asset erosion unless offset by higher government contributions.”
Reeves released an $8.3 billion executive budget which would be $453.5 million over the current budget. Of this increase, $280 million would go toward 15 programs chosen by the governor. Another $229 million would go for increased Medicaid spending. He also included $56 million in budget cuts to various agencies, including $19.3 million for four military, police, and veterans programs, $18 million for bond and interest payments, and $3.8 million for the Arts Commission.
His chosen projects included:
· $100 million for an Energy Infrastructure Bank plus $20 million for energy infrastructure projects;
· $3 million for an innovation accelerator program;
· $20 million for new site developments;
· $1 million for workforce childcare;
· $1.4 million for Accelerate Mississippi Talent Solutions Centers;
· $9 million for three 16-bed stand-alone adult psychiatric emergency service locations;
· $5 million for an additional 16-bed adolescent crisis stabilization unit and a 28-bed secure adolescent residential substance use disorder unit;
· $10 million for a specialized care center for children with extreme behavioral and mental health issues;
· $20 million to expand the Oakley Youth Development Center;
· $3 million for Capitol Police expansion and vehicles;
· $15 million for the MEMA Disaster Trust Fund;
· $12.75 million for 25 youth court chancellors and staff;
· $8 million for a new youth court case management system;
· $2.1 million for trial and appellate judges pay increases; and
· $50 million for debt reduction.
Notably unmentioned and unbudgeted was any increase in PERS funding. No surprise. Reeves has virtually ignored the growing PERS funding crisis during his two decades in public office.
As state treasurer (2004 - 2012), he served as an ex-officio member of the PERS board, becoming well aware of PERS’ mounting problems. After his 2011 election as lieutenant governor, the same year Gov. Haley Barbour’s PERS Study Commission recommended changes to save PERS, Reeves ignored the problem for the eight years he controlled the state senate. In 2019 he was elected governor and even Chat GPT has noticed his PERS malingering: “Since taking office, Gov. Tate Reeves has largely remained silent on the Mississippi Public Employees' Retirement System (PERS) shortfall, despite a long history of deep involvement with state finance.”
As Reeves issued his budget message, financial experts were telling legislators PERS needs $200 million more every year for 30 years.
“They shall turn away their ears from the truth” – 2 Timothy 4:4.
Crawford is an author and syndicated columnist from Jackson.
11 comments:
Screw PERS. All those damn govt retirement types need to take it on the chin like the rest of us. Haircut time. Any contract can be broken.
Legalize sports gambling apps and put the revenue towards PERS
Poor old 8:51 is jealous, failing to provide for his own retirement, would be histrionic if his social security is reduced or eliminated, best not show up at UMMC for critical medical care with that attitude, and thinks nothing of breaking contracts.
Seriously; wasn't it funded just fine until the GOP-dominated Legislature increased benefits, without funding the increase, and against the advice of the PERS Board and the actuaries?
Want to tell another lie? It was Tim Ford and the Democrats who changed it all up back in 1999. They thought we would be getting double digit returns in the markets every year so they hiked the benefits without coming up with extra revenue to pay for them.
@ 8:51 - You're right. A contract can be terminated. Ask any fired college coach. The rub with PERS is the state doesn't have the money to lawyer up and lose the lawsuits that would result.
If your constant mention of haircuts were to take place, the employee party to the contract would own Schick, Gillette, Wahl and Oster. And you would still be poppin' a shoe-shine rag.
Try again 9:30 a.m. All of the changes to the system were made by democrat dominated legislative houses of state government. Including SLRP, COLA, various programs for various groups and 25 year retirement.
Dereliction
Having been a good friend of one who tried to make PERS work, it becomes quickly Mission Impossible. While state government is a major employer in Mississippi and the money is supposed to come from the employer as well as the employee, the "employer" amount was never adequate and the employees salaries couldn't take a bigger hit or you'd not even have someone to vacuum the Governor's office.
Indeed, some state salaries are not enough for one person to live a middle class life.
KF, it'd be helpful to let people know exactly how the funds in PERS can and cannot be managed. Indeed, if the current person managing is competent and ethical, I suspect you could get them to talk off the record and win a Pulitzer or find the most qualified person PERS had around 45 years ago...see if they are still alive.
@9:13
I am not 8:51. However, I have saved and invested over 30% every year since I was 25. Unfortunately, I can’t personally control when the nation goes full stupid and elects fools who crash the stock market and cause massive inflation that strip away the value of my retirement savings. Some of us have talents and ambitions beyond sucking the government tit like you incompetent and lazy state employees do. It just really sucks that the same government that punishes private sector workers, benefits the worthless dregs who cling to government jobs because they are incapable of cutting it in the real world.
Both parties were involved in that greasing of the legislature’s own palms with PERS money. And to prove my point, the republicans have a super majority and have never remotely considered rescinding that foolish SLRP. And frankly the Dems would not either if they were in charge. Greed and lies are the two most common denominators among all politicians regardless of party affiliation.
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