Jacksonville mayor continues to push sales-tax extension to pay down pension debt

In a little more than a week, people will decide on Referendum 1, which is a plan to extend the half-cent sales tax created by the Better Jacksonville Plan past its 2030 expiration in order to pay down the city’s pension debt.

The mayor says this is the only fix that will work.

“We pay a sales tax now and if people vote ‘yes’ on this, they’ll pay the same sales tax then that they pay now,” said Mayor Lenny Curry.

Timothy Johnson, the executive director of the police and fire pension fund, came from Pittsburgh, a city with a similar problem.

“They came up with a dedicated source of parking revenue to deal with the problem,” said Johnson.

But Johnson thinks Curry’s plan is a good one.

Under the city’s current police and fire pension fund, employees contribute 7 percent. They can collect 60 percent after 20 years and there’s an annual 3 percent cost of living increase.

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If the mayor’s pension plan passes, new hires would contribute 10 percent. They would collect 40 percent after 20 years of service and their cost of living increases would be based on Social Security or 1.5 percent, whichever is less.

We compared the plan to the one for the city of Orlando, which has separate pensions for police and fire and general employees.

Police officers there contribute 8.47 percent, collect 70 of their pension after 20 years and receive a 2 percent cost of living increase each year.

Critics of the mayor’s plan say it does little to tackle the pension debt now, but Mayor Curry argues that it covers all the bases.

“There is shared sacrifice, and cuts have been made to benefits. Additional sacrifice will be made by those in the pension plans. It reforms the pension plans and secures a source of revenue,” said Curry.

The vote will take place Aug. 30. Early voting is going on right now.

Cox Media Group