New mayor must have a plan to deal with the structural deficit

The elephant in the room in the city of San Diego’s special mayoral election is the ongoing structural deficit caused by an $8 billion underfunded pension system.

The city’s annual general fund budget is approximately $1.1 billion. This pays for everything from police to libraries.

This year’s payment to the pension system for 17,000 retirees is $275 million, of which $50 million goes to principal and $225 million is lost to interest.

By contrast, the city is only spending $236 million on its fire department, which is responsible for the safety of more than 1.2 million San Diego residents.  Only $55 million is budgeted to repair and maintain our roads, far less than is needed.

Unless the new mayor has a plan to deal with the structural deficit, it will be impossible to keep any campaign promise to get the city back on financial track.

Kathryn Burton

Carmel Valley

Related posts:

  1. Sanders predicts $179M budget deficit next year
  2. S.D. City council hears mayor’s budget cut plan
  3. Del Mar school district faces possible deficit spending
  4. Mayor proposes pay cuts, higher fees
  5. City Council confirms mayor’s choice for fire chief

Short URL: http://www.delmartimes.net/?p=59347

Posted by Lorine Wright on Oct 26, 2013. Filed under Letters, Opinion. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.

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