Traverse City Record-Eagle

Our Views

November 27, 2013

Editorial: Pension proposal deserves no-strings vote

Politics has been called “the art of compromise” and “the art of the possible.”

For the Grand Traverse County Board of Commissioners, however, art usually has nothing to do with it. That has never been more apparent than in a recent discussion about a proposal to borrow $46 million over 20 years to cover an unfunded pension liability and free up general fund money to cover a pending budget deficit.

Some commissioners who helped defeat the measure made it plain their votes could be had — for a price.

Obviously, this is the kind of thing that happens all the time behind closed doors. But it’s no way to conduct the public’s business. What must count is not that a deal has been struck — in public or not — but that commissioners are doing what they believe is best for their constituents and the county.

The pension proposal is critical stuff. The county ended most of its defined-benefit pension plans and now, annual payments are projected to rise from nearly $4 million to more than $6 million by 2024.

Bond payments would be about $3.5 million a year for 20 years, but only $2.4 million in 2014. The reduced cost would eliminate a projected $930,000 budget deficit in 2014 and create a surplus of about $180,000.

While that plan provides a solution for the pending budget shortfall and resolves the pension issue, the county would still be borrowing a huge amount of money and taxpayers would be on the hook until 2033 or so.

After the proposal was defeated 4-3, a few commissioners said their votes could be changed.

“I would take a different look at my vote today if I could get some kind of commitment to doing a couple of other things,” Commissioner Charlie Renny said during the meeting. “I would vote for this (bond issue) today.”

Renny’s wish list included more emphasis on economic development programs, an outside attorney to negotiate future union contracts and an operational analysis of county operations.

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