Gulliford's sales-tax hike idea to help fund pension liability gets cold shoulder from lawmakers


  • By
  • | 12:00 p.m. January 16, 2015
  • | 5 Free Articles Remaining!
City Council member Bill Gulliford
City Council member Bill Gulliford
  • Government
  • Share

Members of the Duval County Legislative Delegation wanted ideas on how they could help with pension issues. They didn’t appear to latch on to Bill Gulliford’s suggestion.

A half-cent sales tax — decided by the voters — would help pay down unfunded liability in pension plans. To simply put it on the ballot without any maneuvering with other tax sources would need Legislature’s approval.

It would be better than another property tax increase, Gulliford said, which would only affect homeowners instead of everyone who uses public safety resources. And it’s better than doubling JEA’s franchise fee, which would affect just ratepayers, he said.

His City Council colleague John Crescimbeni told the Duval legislators he agreed with Gulliford and pitched the idea, too.

But, Gulliford walked away disappointed and surprised.

“They don’t have any appetite to grant us the sales-tax option,” he said afterward. “I have a philosophical problem with not letting the voters decide.”

State Rep. Janet Adkins conducted the workshop Thursday to learn about the state’s pension woes and determine ways to “find solutions and restore the public’s trust” in the system.

The chairwoman of the delegation said afterward she understood why council members wanted the sales-tax option, but getting it through Tallahassee would be a “difficult lift politically” and likely wouldn’t work.

State Rep. Lake Ray said he thought the sales-tax idea was the best option for the situation, but acknowledged the political difficulties of getting anything pension-related through Legislature. He said if was approached to pursue the idea on the House side, he’d consider it.

Gulliford said without broad-based support locally, it wouldn’t have a chance at passing. If it did, though, he said it would raise more than $60 million a year. That could be divvied up to pay down the city’s $1.65 billion public safety liability problem and almost $1 billion in the general employees’ plan.

Gulliford doesn’t think it’d be a tough sell to the public, given the other revenue-generating options.

“I don’t think it’s that onerous,” he said.

At the conclusion of the almost three-hour meeting, Adkins said she would be introducing a pension-related bill for the legislative session regarding pension changes across the state. She didn’t share details, saying she wanted to incorporate ideas presented Thursday, but did mention affecting the makeup of pension boards.

The police and fire pension fund consists of five members. Two come from the public safety side, two are appointed by the city and the fifth member is elected by the four sitting members.

Changing that was a non-starter during pension talks between Mayor Alvin Brown and Police and Fire Pension Fund administrator John Keane over the summer.

The workshop had many speakers talking on the topic, giving suggestions for solutions.

Council member Bill Bishop used the opportunity to ask the delegation members for an expedited review of the current agreement the city has with the Police and Fire Pension Fund. The so-called 30-year agreement expires in 2030, which some are calling illegal because it goes past the normal three-year window mandated by collective bargaining rules.

Adkins called the idea “intriguing” and said she’d look into it more.

Adkins has asked Gov. Rick Scott for an investigation into the fund’s practices, but referred questions to Scott’s office when asked for an update on the issue.

[email protected]

@writerchapman

(904) 356-2466

 

Sponsored Content

×

Special Offer: $5 for 2 Months!

Your free article limit has been reached this month.
Subscribe now for unlimited digital access to our award-winning business news.