Tuesday, March 14, 2006
Just when it looked like things couldn't get much worst for the city of San Diego, a new report is out that reveals another billion dollars of debt. KPBS reporter Alison St John has more.
The city will owe an estimated $978 million to pay medical benefits for current and retired city employees. According to a report by the actuarial firm of Towers Perrin, that debt will grow to one point nine billion over the next nine years.
Mayor Jerry Sanders says it's bad news for the city, but he says San Diego has to get the real figures before he can devise a plan to deal with the financial mess.
Sanders: "What we've been trying to do since day one is get an accurate reflection of what this city is facing moving forward, we need to solve the problems and you can only do that with accurate information."
The Mayor's budget will include $21 million to pay the immediate medical costs. The practice of paying the Medical benefits out of the pension fund stopped last year to prevent the pension fund's billion dollar deficit from increasing any faster. Alison St John KPBS news.