Santa Monica, the union's best friend

Pending financial shortfalls trigger job cuts at City Hall

City Hall will cut about 29 jobs and save $17 million in spending by mid-2021 to prepare for coming financial shortfalls as it pays down its $448 million unfunded pension liability over the next 13 years.
Even with an accelerated payment plan for the pension liability that will save $106 million in interest and fewer employees and services, the City of Santa Monica’s General Fund will still be at least $15 million in the red in eight years. The fund, which comprises 60 percent of the City budget and collects revenue primarily from property, sales and hotel taxes, business licenses and parking fees, currently has a $7.1 million surplus.
While General Fund revenues are slowing or declining as more people shop online and fewer use parking lots, pension costs are the main driver of the City’s projected shortfall. The state pension system that covers City employees fell into crisis after the Great Recession and retroactively increased retirement benefits a decade before that. Cities around California now have to make up the lost pension funds and higher costs.

Santa Monica is a bell weather for me.  The city leaders always put union first, always insured good pensions. That was three years ago, now they change their tune.