Municipalities across Louisiana have just gotten word that they’ll be slapped with a whopping hike to their required contribution to a police retirement fund that’s infamous for its costly, failed golf-course investments. The Municipal Police Employees’ Retirement System, whose former lawyer is in federal prison for stealing money, sent a memo last week letting government officials know the employer contribution rate is expected to rise 4.5%, to 31%, beginning July 1. For Baton Rouge, that means paying MPERS $1.75 million, although Finance Director Marsha Hanlon says the amount will be split between two budgets because the city’s fiscal year is based on a calendar year. The increasingly unaffordable rate is forcing some small-town mayors to contemplate shutting down police departments and relegating law enforcement to sheriff’s offices, while some officials in urban areas are talking about hiring freezes. Hanlon says that, although the rate hike wasn’t expected for 2012, the city will consider tapping revenue projected to exceed original budget estimates, continuing its review of filling vacancies as they occur, or utilizing reserve funds. Overall, the MPERS contribution amounts to less than 1% of Baton Rouge’s general fund budget. “In no event will there be a need for layoffs of personnel,” Hanlon says. Read the full story here. —Penny Font
Today’s poll question: Do you agree with Gov. Bobby Jindal that Louisiana Association of Educators Executive Director Michael Walker-Jones should resign because of a comment Walker-Jones made to a newspaper—a remark that he says was taken out of context?
