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SUNNY Temp: 83 °F Wind: NW at 4 mph Thursday, July 24, 2003 SECTIONS Home Page Local News Sports Business Obituaries Life Opinion - Politics AP News Weather Classified Archives Site Map EXTRA HomeLife Magazine W3 Magazine Jobs @ Mail Tribune Tempo A & E Oregon CarZone Wellness Connection Real Estate Newspaper in Education Prime Times Outdoor Journal Personals Movie Times TV Times E The People CLASSIFIEDS Find a Car Find a Home Find a Job Find Everything E SOUTHERN OREGON Automotive Communities Entertainment Publications Recreation Calendar ABOUT US FAQ What's New Advertise Home Delivery Classified Ad Contact Us Media Kit Email Story to a Friend February 19, 2003 Bill signed to begin overhaul of PERS It will reduce local schools’ payments $4.2 million in the next budget cycle By DAMIAN MANN Mail Tribune Gov. Ted Kulongoski signed legislation Tuesday that begins the overhaul of the Public Employees Retirement System and saves Jackson County schools $4.2 million in their next budget cycle. House Bill 2001 will slash $900 million out of $15.8 billion in PERS long-term debt by setting an 8 percent cap on employee earning. In the next biennial budget, it will save government agencies an estimated $201.8 million. Schools throughout the state will have $80 million less taken out of their budgets to pay PERS expenses. "It’s a first step in the right direction," said Republican Rep. Rob Patridge of Medford. "However, this is by no means the total solution." Patridge said he doesn’t anticipate legal action from this legislation, but said other pending bills likely will trigger lawsuits. Republican Rep. Dennis Richardson of Central Point said part of the rationale for the bill was to help offset some of the budget problems that school districts face. "Central Point (schools) will be paying $673,928 less than it would have without the bill," he said. Richardson, who sits on the House PERS Committee, said the House plans to introduce legislation either this week or next that would change the outmoded method that PERS uses to calculate retiree benefits. Retirees are living an average five years longer than the 1978 tables used by PERS. The PERS board wants to update the tables Jan. 1, 2004, to give current employees a chance to retire before the changes are made, but legislators have urged changing the tables retroactively to January of this year to save the state more money. Richardson said, "The bill that requires using up-to-date mortality tables will save even more for our school districts." The bill not only would knock another $1.4 billion off the long-term debt, but give schools an additional $120 million break on how much they contribute to PERS, he said. Greg Lecuyer, finance director of Eagle Point schools, said any reduction in PERS costs would be welcome by his district. Eagle Point schools anticipates its payments to PERS would have jumped from $2.5 million to $3.3 million next fiscal year, or about $800,000 more. While details of the legislation are still vague, Lecuyer said, "If it came to pass and we were able to reduce my increase to $200,000 rather than $800,000, we could spend more money on teachers and other programs." Central Point schools Superintendent Candace Manary also welcomed any decrease in PERS costs, but said the district needed more information from the state before it could calculate the benefits. Legislators are hoping to send a message to Oregonians that they can resolve much of the PERS problem and other budget woes facing the state. Republican Sen. Jason Atkinson of Jacksonville said, "People sent us here to find an answer to balancing the state’s budget and to find answers to education funding." He said the passage of the bill represents a symbolic first step in a long process to grapple with the PERS issue. Reach reporter Damian Mann at 776-4476, or e-mail [email protected] The following are estimated savings to Jackson County schools from a House bill signed by Gov. Ted Kulongoski Tuesday that sets an 8 percent cap on employee earning. One result will be a reduction in PERS contributions made by school districts. These are calculations made by the Legislative Fiscal Office and the Legislature. Ashland $463,027 Butte Falls $35,562 Central Point $673,928 Eagle Point $600,048 Medford $1,888,975 Phoenix-Talent $411,209 Pinehurst $4,209 Prospect $28,013 Rogue River $179,114 Total $4,284,085 Total savings for all Oregon schools $80 million Printer Friendly Version Email Story to a Friend Subscribe Archive: Click to Search Mail Tribune Home Local News | Sports | Business | Obituaries | Life Opinion - Politics | AP News | Archives | Site Map E Southern Oregon | Classified Copyright © 1997-2003 Mail Tribune. All rights reserved. Privacy Policy | Terms & Conditions Website Feedback A D V E R T I S E R S SPECIAL SECTIONS Rogue Valley Auto Finder Rogue Valley Job Finder --> Rogue Valley Home Finder Joy Magazine Homelife Magazine Tempo Real Estate Showcase Food for Thought Hike of the Week Wellness Connection Outdoor Journal Moving to Southern Oregon? Volunteer Openings Prime Times