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Showing posts from April, 2021

City Action Alert: SB 2046 Highway Tax Distribution Funding and PERS Retirement

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In a major twist on April 15, Rep. Delzer introduced a hoghouse amendment to SB2046 (NDPERS Bill) that would essentially turn it into an “alternative streams bill”. This creates 2 significant concerns. A)   1)   THE DRAFTED AMENDMENT DOES NOT INCLUDE A STREAM FOR THE HIGHWAY DISTRIBUTION FUND.     The original “streams bill” (HB1380), dedicated $64.3 million per biennium to the Highway Distribution Fund, for state, county, city and township roads. This amendment instead proposes a $60 million income tax buy-down with Legacy Fund interest money. 2)   THE DRAFTED AMENDMENT SHIFTS AN UNKNOW AND UNFUNDED LIABILITY TO POLITICAL SUBDIVISIONS. It does this by closing the NDPERS defined benefit plan for state employees and devoting general funds ($100 million) and an ongoing allocation of legacy interest (~$40million/biennium) to address the unfunded NDPERS liability created for  state  employees only .  This means cities, counties, schools (for non-teacher employees) health districts,