Board asks staff to explore options to lower PERS costs and protect district reserves
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Summary
Finance staff urged the board to consider aggressive steps to reduce pension-related liabilities (UAL/PERS), including prepayments and multi-district strategies; the board asked for education and a later report on options.
The board spent time on finance strategy, focusing on pension liabilities administered through PERS and the district’s Unfunded Actuarial Liability (UAL). Staff said reducing UAL exposure is a key lever for long-term financial stability and described options for board consideration, including establishing reserves to make targeted PERS buy-downs and participating in coordinated, multi-district strategies when state opportunities arise.
Staff noted that PERS rates and the UAL can produce large multi-year budget impacts and that certain state programs allow districts to “buy down” UAL with possible matching contributions in limited windows. Finance staff said the district previously participated in multi-district efforts that yielded substantial savings and proposed that the board consider setting aside reserves or pursing coordinated actions when opportunities are available.
Board members asked for education on timing and risk factors—staff turnover, revenue volatility and market-rate volatility—and for a plan to present options the board can vote on if it chooses a buy-down or other pension strategy. No spending or commitment was approved at the work session; staff asked for board agreement to bring specific options and recommended timing back to the board in the months ahead.
The board also reviewed ongoing budgetary priorities and the need to balance cuts with investments in operations and communications; staff said a small number of positions were cut earlier in the year but asked the board to remain open to targeted investments to deliver the strategic plan.