The Morning Report
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The city of San Diego’s pension deficit has grown to more than $2.25 billion, a city estimate released yesterday shows.
The report from the city’s chief operating officer, Jay Goldstone, states that as of the end of February, the pension fund is about 62 percent funded.
Goldstone’s report says the market value of the pension fund’s assets has dropped to nearly $3.1 billion, about $200 million less than at the end of January. The pension fund has lost $1.3 billion since June 30, when the last official snapshot of the pension system was taken.
The drop in the pension fund’s assets won’t affect the city’s contribution to the pension fund for the upcoming budget year, when the city is facing an estimated $42 million to $54 million budget gap. But barring a major economic recovery before June 30, those losses will swell the city’s contribution to the pension system in the 2010-11 budget year.
The pension system’s actuary recently said that based on January’s figures, the pension contribution could reach $250 million in 2010-11. That’s nearly $100 million more than the city will pay in the budget year starting July 1.