Agencies, counties, schools face higher pension payments

TALLAHASSEE — Florida counties will have to contribute an additional $66 million to the state pension fund in the new budget year, according to legislation that has started moving in the Senate.

As a result of a decrease in the assumed rate of investment return on the $160 billion pension fund, counties, school boards, state agencies, universities, state colleges and other government entities will have to increase contributions in the 2018-2019 budget year to make sure there is enough money to pay retirement benefits in the long term.

The increased payments total $178.5 million, including $66.4 million for county governments, according to a bill (SB 7014) approved by the Senate Governmental Oversight and Accountability Committee last week.

School districts, whose employees represent about half of the 627,000 active pension participants, will have to contribute an additional $54.4 million.

State agencies will have to contribute another $31 million. Universities will have to contribute $11.8 million and state colleges an additional $4.8 million.

A handful of cities and special districts that participate in the state retirement system will face a $10 million contribution increase.

County governments, which face the largest contribution increase, will have to accommodate the added expense as they shape their 2018-2019 budgets.

The bulk of the other contribution increases are part of overall budget challenges House and Senate members face as they craft the 2018-2019 state budget, which takes effect July 1.

The $54 million increase for school districts, for example, will be in the mix as lawmakers address overall public-school funding.

Lawmakers are already having to accommodate an increase of more than 27,000 new students next academic year, and the House and Senate remain at odds over using increased local property tax collections to boost school spending.