Texas lawmakers push City of Dallas, pension fund leaders to solve problems
DALLAS - On Thursday, state lawmakers warned the City of Dallas to settle its differences between two competing financial plans to fund its public safety pension.
A plan to fund the pension system needs to take effect one year from now, but there are competing proposals, one from the city and one from the pension system, that are separated by an average of $20 million a year over 30 years.
The state intervened before, and that may happen again.
Rep. Fred Frazier (R-McKinney) reminded Kelly Gottschalk, the pension system's executive director, about how bad the process was seven years ago when the fund was forced to leave the legislature with a funding plan.
"I don't think anybody wants to do that again. I can tell you there is no winners on that deal. That is just my word of advice," said Kelly Gottschalk, the pension system's executive director.
Gottschalk is all too familiar with the grueling process with the legislature, but Dallas CFO Jack Ireland was not there in 2017.
Rep. Frazier had a word of warning.
"Get ready. Get some big ol' boots on," he said.
At stake for retirees is not just the soundness of the plan, but also if they will receive a cost of living adjustment or a small stipend that does not provide any relief from inflation.
It's something impacting the city's ability to recruit new officers.
"We have about 100 more police officers and firefighters now than we had 2015," said Gottschalk. "They are leaving as fast as they can hire them."
Frazier said the city should get creative about finding more funding for the pension.
"You've got DART out there, you've got a ridership down to nothing, let's look at some other resources," he said.
"You don't want the state playing umpire on this. Rep. Frazier is right on target. So I really encourage you to take this message back to your leadership that y'all need to figure this out soon," said one lawmaker.
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Dallas approves new 30-year police and fire pension funding plan
The Dallas City Council approved spending $11 billion over the next 30 years to hopefully fix a more than $3 billion budget shortfall.
The Dallas Police and Fire Pension system filed a lawsuit to help answer the questions about the funding plan and if it is binding.
Oral arguments are expected to happen at the end of October.