Even as Santa Rosa and other local governments reconcile spending with declining sales and property tax revenue, another hit may be in the offing.

Calpers, the California Public Employees Retirement System, is taking big hits on its investment portfolio (just like private pension funds, 401(k)s and other investors). According to testimony in a legislative hearing reported by Ed Mendel of Calpensions.com, the value Calpers' portfolio is $111 billion, down from $174 billion.

Calpers, which administers pensions and health insurances, warned member agencies that employer contribution rates could be boosted as much as 5 percent if the fund drops 20 percent during the fiscal year that ends June 30.

Santa Rosa and other local governments (state government, too) have granted generous, retroactive pension benefits over the past decade based in part on promises that Calpers' investment returns would cover the cost.

Now, however, it sounds like a bigger share of those costs will be falling on California taxpayers, paid at the expense of public services.

-- Jim Sweeney