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Blame Carol Wood for $700 million pension/retiree health care funding shortfall July 11, 2019
However, having served on city council since 2000, she is Lansing's longest serving elected official. That means that more than anyone, she can be blamed for the city's dismal financial position.
The city is being strangled by underfunded pensions and health insurance for city retirees. In a May 13 letter to the mayor and city council, the Financial Health Team pointed out that those obligations have increased from 13.5% of total city revenue in 2006 to 21.9% this year. The FHT implored city leaders to take action before difficult decisions are made for them - possibly by a financial emergency manager appointed by the state.
Going back at least as far as 2010, Carol Wood served as the council representative on the boards of both of Lansing's retirement systems, Police & Firefighters and general employees (ERS). She left the ERS board in February 2017, but remains on the P&F board. From 2001 to 2017, funding for P&F pensions sunk from 112.6% to 68.4%:
Funding for ERS pensions went from 89.5% to 58.8%:
The latest pension figures were reported to Treasury's Municipal Stability Board in 2018 (source: Local Retirement System Summary with Data FY 2018 from this page):
Retiree health care status was reported as well:
So total unfunded liabilities are approaching $700,000,000. That is $14,366 for each of Lansing's 48,726 households.
As a long-term council member and a member of both retirement boards, Carol Wood probably has a better understanding of the situation than any other city official. But did she ever sound the alarm about growing pension and retiree health care liabilities? Has she ever proposed changes to reduce those costs? Not that I know of. And this is by far the biggest issue this city is facing. It is killing us.
Our police and firefighters are paid not to work. Needing only 25 years of service to retire and a life expectancy of 86, they can expect to receive pensions and health insurance 6 years longer than they were on the job. With a 3.2% multiplier, pensions are 80% of pay.
Council members are not involved in contract negotiations, but contracts have to be ratified by city council. Council members do have power, if they choose to use it.
Carol Wood has always enjoyed the support of organized labor. This list of endorsements is from the flyer from her current campaign for council-at-large:
Here is what two union heads have to say:
Has she earned these endorsements by putting the desires of unions over the welfare of the people of Lansing? Is it time to retire Carol Wood?
She and fellow incumbent Patricia Spitzley have three challengers in the at-large primary: Yanice Jackson-Long, Julee Rodocker and Terry Eagle. Two of them have websites: Send comments, questions, and tips to stevenrharry@gmail.com, or call or text me at 517-505-2696. If you'd like to be notified by email when I post a new story, let me know.
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Public
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Except
for the fact that she upheld the denials of two of my Freedom
of Information Act requests (
