In a recent meeting of the Bexar County Commissioners Court, discussions centered around a proposed cost-of-living adjustment (COLA) for retirees, with significant debate over the implications of such an increase on the county's financial health. County Auditor Leo Caldera presented a recommendation to forego a COLA this year, citing a forecasted revenue decline and potential impacts on the county's triple bond rating. However, Judge Peter Sakai expressed support for a 20% COLA based on the Consumer Price Index (CPI), which he argued would better address the purchasing power of retirees affected by inflation.

Caldera highlighted that the proposed CPI-based COLA would complement a previous 5% flat rate increase implemented in 2023, emphasizing that a flat rate does not account for the varying impacts of inflation on retirees who have been out of the workforce for different lengths of time. The CPI method, he argued, would provide a more equitable adjustment based on individual retirement dates and inflationary effects.

The financial implications of the proposed COLA were a focal point of the discussion. While the 20% CPI adjustment would cost approximately $3.7 million, a flat rate increase would require a significantly higher budget allocation of around $10.4 million. The court also discussed the long-term effects of repeated COLAs on the county's credit rating and financial liabilities, with some commissioners expressing concern about the sustainability of such increases in future years.

Commissioner Claire Flores raised questions about the perceived benefits of the CPI adjustment, noting that only recent retirees would see substantial increases, while older retirees might not benefit as significantly. This led to further discussions about the historical context of COLAs and the need for a balanced approach that considers both current and past retirees.

Ultimately, the court moved towards a decision, with Commissioner Rodriguez making a motion to adopt the 20% CPI COLA, which was seconded by Commissioner Moody. The proposal aims to enhance the financial well-being of retirees while navigating the complexities of the county's budget and long-term financial commitments. The court's decision reflects a commitment to supporting retirees amidst ongoing economic challenges, while also being mindful of the county's fiscal responsibilities.