I told you that NorCo Exec Tara Zrinski was a big hit at the recent retirees' luncheon. She talked about it during her report to County Council at last night's meeting. What's more, she spoke about how recent county budgets have shortchanged both retirees and Gracedale, She added that the state budget is having an increasingly adverse impact on seniors.
Here's the bad news for retirees: "Retirees are very concerned that a contribution was not budgeted, in part of 2025, falling behind by $4 million in all of 2026, neglecting a payment of $11.6 million. Each year, in October, we receive a recommendation from our actuaries called the actuarily determined contribution. Or ADC. Now, that doesn't mean we're $16 million at a deficit. If we make the ADC this year, we believe we'll be back on track. We are currently at a 90% funded rate. Thank you to the fine investment by PFM that they have made on behalf of our county and our retirees. But we know that the sum that we are going to have to contribute is several million dollars, and that was not in the 2026 budget. Thus, when we say the 2026 budget is working as it was designed, we are saying it was designed to not fund the pension in 2026. That trend cannot and will not continue."
The actuarily determined contribution for the pension fund in 2025 was $12.8 million, but the Lamont McClure administration only kicked in $8.2 million. In 2026, the actuarily determined contribution was $11.6 million, but McClure's budget opted to pay nothing.
The county also maintains a retiree healthcare fund to cover the medical expenses of retirees entitled to them. In 2025, the actuarily determined contribution for this fund was $2.6 million. McClure shortchanged it by a million. In 2026, the actuarily determined contribution for retiree healthcare was $2.2 million. McClure paid nothing.
Here's the bad news about Gracedale, which already received a $7 million county contribution this year to fill in last year's deficit: "[T]here will be some county contribution to Gradceale. That will most likely be several million dollars that was also not budgeted in the 2026 budget."
Say what? When former Exec Lamont McClure proposed the 2026 budget from Gracedale's chapel, he stated that Gracedale would need no county contribution. The Administrator, Michelle Morton, told County Council her budget was balanced. Both of these statements are apparently untrue.
Finally, there's bad news for seniors. Zrinski has previously said the Area Agency of Aging was getting shortchanged $400,000 this year, which has resulted in the closure of two senior centers. But last night, she warned of more cuts. "[T]he state has informed us that in our 2027 budget allocation, the area agency on aging should be, the allocation should be estimated at the 2018 2019 levels." She would like to continue offering the same services to seniors as they currently receive. "I would like to offer more services, or at least the ones that we're currently offering to seniors at the level that our seniors need to maintain their health, their quality of life, and well being."
Zrinski went on to say that a 1991 County Council resolution prevents the county from paying more for for human services beyond the match it receives from the state, and she suggested that be repealed.
There's no need if it is only a resolution. A County Council binds neither the Executive nor future Councils. That would require an ordinance.
I will have lots more about County Council and its committees next week.
26 comments:
Hate to say it, but told you this was coming.
Politicians should not be in charge of tax money they are not capable of working with money because their DNA is flawed.
What the Hell? How could the budget be that OFF? Who besides McClure is responsible? I don't blame th new people but most of the others on council had some experience and how could they pass an insufficient budget? Was their love of all things McClure so great they didn't study the budget and sound the alarm? So now the chickens are coming home to roost. This is on county council for not reviewing the budget before passing it. Good on Zirnski for being upfront on th reality.
What does it mean that the pension is funded at 90% ? How much money is in the pension ?
The average pension fund in the u s is funded at 80.2%. Things are slightly different in Canada. A 90% funded pension is considered “resilient.”
It’s not fair to Tara. This is really Lamont’s budget. She’ll get to put her own stamp on the County next year. After that, it’ll be her vision going forward. As it should be.
It's no longer a question. Lamont McClure is a documented liar and the worst executive in NorCo history. Hats off to voters who completely rejected his continued political plans as he jumped like a rat from the ship he sunk.
As a Northampton County senior citizen for many years already, I can only say this information is beyond disappointing. Our state and local government has an obligation to perform much better.
McClure ran this county into the ground just to use not raising taxes as a political slogan, and he lost and lost big! Who is the next director of fiscal affairs? Ironic the day after he loses the county finds one, let’s hope it’s not who we all think, and we do the right thing and bring in a true honest fresh public servant with integrity.
You are just realizing that McClueless lies! Sooooo glad he lost on Tuesday.
Interesting that this comes out just after Lamont lost his primary. There will need to be a tax hike in 2027.
The average municipal pension in Pennsylvania is funded at 78%. Northampton County is in good shape.
McLoser strikes again. No wonder he lost the primary. People saw thru his lies Bend over Norco taxpayer, the big one is coming. TZ doesn't have much choice thanks to McClueless's lack of integrity.
The PA Auditor General did an audit of the pension fund in 2023 and found it was funded at 95%. The report can be found on the AG’s website.
McClure, in his own way just as crooked as brooks
Well Bernie, how do you feel about Lamont now? He lies, he bullies. Not only that, the stock market is at a record high. What happens to the pension fund if we have a prolonged down turn in the markets?
So if the retirement fund was funded to its correct percentage, why would we overpay it? Why wouldn't we use that money that is usually funded for that to go towards something else? Why would we have the retirement fund at 100% if it only really needs to be funded at 85%, the 90% is incorrect.
So it’s not a question of a tax increase, but how much?? Gracedale is a much bigger problem than we were led to believe. The pension fund is 90% funded which isn’t bad, but not paying in cannot continue. Rendell did this on the state level and really made a mess. There is a fiscal shit storm coming, it was swept under the rug because of Lamont’s bid for Congress. Where were Keegan and Warren? They knew this was coming yet they were more interested in helping Lamont. As far as the state cuts, the Covid Biden bail out money is running out. Shapiro is running for President so he’s not going to raise taxes, he’s going to exhaust the rainy day fund. He’s going to leave a fiscal mess just like McClure.
It has been so very frustrating to read about and/or watch/listen to Lamont McClure as county executive over the last eight years. His math, especially about Gracedale, was always fuzzy (how could it not need county contribution if the census was low, expenses were high due to use of agency staff and lawsuits were and probably still are pending due to abuse of residents. Yet Democrats poo pooed it and even supported him (especially County retirees). Now those same retirees have a supposed new savior in Zrinski who has truly no clue. If Tara was the controller, how did she not know any of this (or did she know and just want the executive job so badly that she was willing to take on this mess?)I recall seeing political campaign ads during that campaign with Tara, Lamont and Jerry since both of them “endorsed “ her. Jerry supported Lamont too, right? Who knew what when? Must watch the You Tube of that meeting to see the faces of those Democrats on the council with this news and whether or not Tara chews her gum throughout again.
McClure made this point when questioned about no contribution to the pension fund: ""I'm glad you asked that question. There is no risk. Currently, in the pension fund, we have $563,181,986.53. ... Our pension fund at the beginning of the year was funded at 90.7%. It is now presumably, because it has grown, funded at 93%. Your average pension fund in the Commonwealth of Pennsylvania is funded at 77%. Actually, nationally, the average is 77%. ... The taxpayers have been overtaxed for the pension and specifically, to the tune of $103,469,300.00. That's one year of the general fund real estate taxes. One entire year of the taxes we collect for the general fund went into the pension fund. We're going to rebalance that. It will be back down to about - I suspect - 85% funded at the end of next year.""
Ron Heckman said the budget wasn't right and proposed a tax increase that was shot down.
Couple of things - re Gracedale, I have yet to see the public apology John Brown is due. Like him or not, he called this and he was right.
And on the pension plan - "We're less underfunded than others, so all is good." This is the same jabroni who announced that unaudited statements are worthless. What an indictment of the County Finance Department - their work cannot be relied on. Somehow I doubt that's true.
Lamont McClure was a train wreck financially. Let's see if Tara is up to the task.
90% funding is more than not bad. It means the county can forgo contributions some years.
McClure is being attacked for not raising taxes. There are reasonable arguments that he should have sought an increase, which Council would have to approve.
If he had raised taxes, he’d be attacked for that too.
So let it rip.
Kept electing democrats. What a shit show. People need to start understanding and researching PEOPLE not party. Just look at the county executive and council. Comical.
If Gracedale was at the budgeted for census, it would not need a county contribution.
Post a Comment