MPA Alert-Budget News

Police Pension News

The MPA attended the PSPRS/CORP managers meeting this week.  At this meeting we learned that all the state retirement plans are in a poor condition.  Though each has sufficient funds to meet current obligations additional revenue sources must be found to sustain each fund in the future.  It was stated by the presenters that previous funding reports were NOT completely accurate, the investment strategy unwise and the calculations used to make past reports of fund balances (actuarial) were questionable in the reliability. 

Because of poor cash value balances in both funds it is likely, there will be a push to have individual retirement contribution rates increase significantly in the near future.

However, we mirror the same position as Phoenix Officers: Do not rush to hasty decisions. It took a lot of time for us to get to the position we are now. We need to examine all the alternatives. The mere fact we are focusing on ensuring the problems of the past are fix is a good start. Let’s not get behind an increase to Mesa’s police Officer contributions until we have explored all the other possibilities. Mesa’s Officers have already sacrificed much. We owe it to them to look for other ways to ensure the funds vitality.

Every member of the PSPRS board is accepting ideas on ways we can fix the problem. If you have helpful suggestions, please email them to:  President@MesaMPA.com

Here are the latest figures provided by PSPRS

End of Year 09

Employer rates

State Legislature forwards budget to Governor

The MPA is a proud member of the Arizona Police Association (APA), the largest sworn police organization in Arizona with over 9000 members. Our President, Fabian Cota, also serves as Vice-President of the APA.

We have also been closely monitoring the developments at the Arizona Capitol regarding cuts that could impact Mesa.

The APA and our lobbyist (Williams and Associates) have been working with several legislators prior to and during the current special session to protect the financial assets vital to the safety of the public and the law enforcement and correctional family. It is our goal to protect state shared revenues and funding streams to law enforcement entities (police department, sheriff’s office, agency and corrections) as much as possible in the current economic environment. 

This past Saturday, a budget was passed and will be reviewed Monday by the Governor for passage. So far I am pleased to report that state shared revenue was not touched in this round of budget reductions.  Designated funding to law enforcement entities was also not reduced.  DPS, corrections and Liquor License and Control were targeted but not as significantly as originally expected.  Below are the reductions sustained, so far, by these groups:

Reduces the following amounts in FY 2010 state GF appropriations from the corresponding agencies or sources (copied from JLBC Sources):

Fund Transfers

The following fund reductions and transfers (FRAT) in the indicated amounts and deposits the monies into the state GF (General Fund) by July 1, 2010:

 

Arizona Department of Corrections

 

 

Department of Liquor Licenses and Control

 

 

 

 

DPS

 

 

Additional cuts:

Excess balance transfers (EBT) from the indicated sources and deposits the monies into the state GF by July 1, 2010

Arizona Department of Corrections

 

 

Department of Liquor Licenses and Control

 

 

DPS

 

 

Department of Corrections (ADC)

 Reverts, on the effective date of this act, $11,000,000 of the $16,064,100 appropriated in FY 2010 to ADC for lease purchase payments associated with 4,000 new state prison beds.

States legislative intent that ADC use an equivalent amount from the excess lease-purchase proceeds authorized in the FY 2008 criminal justice budget reconciliation bill (Laws 2007, chapter 261, section 9).