Jacksonville approves record $209 million pension debt payment

The Jacksonville City Council’s finance committee has approved a record $209 million payment to address the $3 billion debt within the police and firefighters pension fund. This payment, combined with Mayor Donna Deegan’s proposed billion-dollar public safety budget, results in police, fire, and retirement costs accounting for more than 63 percent of the city’s $2 billion general fund.

The pension fund's financial health has reached one of its worst states, with costs rising significantly following the Great Recession. While a half-cent sales tax approved in 2016 is intended to help defray pension costs starting in 2031, the city must manage rising obligations in the interim.

This fiscal pressure coincides with the upcoming November ballot regarding Amendment 3, a proposed property tax cut that could reduce the city’s general fund by $300 million in its first year. Although the finance committee has discussed the need for budget cuts, no members have suggested reducing public safety expenditures.