Texas lawmakers push City of Dallas, pension fund leaders to solve problems

On Thursday, Texas lawmakers pressed the City of Dallas to resolve a financial dispute over funding its public safety pension. The city faces competing plans, one proposed by the city and another by the pension system, with a $20 million annual difference over 30 years.

State Rep. Fred Frazier (R-McKinney) reminded Kelly Gottschalk, the pension system’s executive director, of the difficulties experienced seven years ago when the pension fund had to leave the legislature with an unresolved funding plan. “I don’t think anybody wants to do that again,” Frazier cautioned.

Gottschalk, who is familiar with the challenging legislative process, acknowledged the strain, while Dallas CFO Jack Ireland, who wasn’t involved in 2017, received a stern warning from Frazier: “Get ready. Get some big ol’ boots on.”

The dispute affects retirees, who face uncertainty over whether they will receive a cost-of-living adjustment or a modest stipend that doesn’t address inflation. The issue also impacts the city’s ability to recruit new police officers and firefighters. “We have about 100 more police officers and firefighters now than we had in 2015,” Gottschalk noted. “They are leaving as fast as we can hire them.”

Frazier urged the city to explore alternative funding sources, such as unused resources from DART, and warned against state intervention. “You don’t want the state playing umpire on this,” he said.

The Dallas Police and Fire Pension system has filed a lawsuit to clarify the binding nature of the funding plan. Oral arguments are scheduled for the end of October.