Nevada County’s Pension Crisis: A Failure of Leadership and Accountability
Nevada County is in the grip of a pension crisis—and make no mistake, it is a crisis of leadership. The County’s pension funding has plummeted from 76% in 2019 to just 62.8% today, with unfunded liabilities soaring to more than $223 million. This catastrophic failure is the direct result of repeated inaction and neglect by the County’s Board of Supervisors, Supervisor Heidi Hall represents my District 1, County Executive Officer Alison Lehman, and County Counsel Katherine Elliott—all of whom have had full knowledge of the problem for years.
District 1 Supervisor Heidi Hall was first elected in January 2017. Since then, she has served as Board Chair multiple times and has been a consistent voice in setting the County's direction and policies. However, despite her leadership roles and repeated re-election by voters, she has remained silent on the growing pension crisis. It is time for Supervisor Hall to convert that community trust into bold fiscal leadership—not more administrative rubber-stamping.
Two Grand Jury Reports, Two Missed Opportunities
The 2017–2018 Nevada County Grand Jury report issued a clear call to action:
Increase pension transparency
Require employee cost-sharing
Present liabilities directly to the Board of Supervisors
Adopt the League of California Cities’ best practices
At the time, Alison Lehman was Assistant CEO. Despite her direct administrative authority, the County failed to implement any meaningful corrective measures. By 2018, she was promoted to CEO—and in the seven years since, the problem has only grown worse.
In 2023–2024, a second Grand Jury report once again laid out urgent options:
Propose a tax (which I do not support)
Create a concrete plan to eliminate the debt
Withdraw from CalPERS in favor of a better-performing system
The County acknowledged the recommendations—but then, once again, did nothing.
The Hall–Lehman–Elliott Oversight Void
Alison Lehman has held senior leadership roles in the County since 2001, including Interim Human Resources Director and Director of Social Services. She has been at the table through both Grand Jury reports, and her failure to act—especially as CEO—is not accidental. It is a dereliction of fiduciary duty to taxpayers, employees, and future generations.
Katherine “Kit” Elliott, appointed as County Counsel in November 2019, is the chief legal advisor to the County. Her responsibility is to ensure that the Board’s responses to Grand Jury findings are not just performative but legally and fiscally sound. Yet she has remained silent while the County violated its own stated commitments and dug itself deeper into financial instability.
The Board of Supervisors—tasked with final budget authority—have consistently rubber-stamped growing liabilities and complex budget increases without meaningful inquiry. The result? A broken system where truth is buried in process, and accountability has become optional.
Alison Lehman’s Compensation Explodes While Pensions Collapse
While the County’s pension system deteriorated, Alison Lehman’s personal compensation has ballooned:
- 2016: ~$281,000 (as Assistant CEO)
- 2018: ~$318,480 (first year as CEO)
- 2020: ~$460,470
- 2022: ~$430,800
- 2023: ~$450,000+
That’s an increase of more than 60% since 2016. While retirees, taxpayers, and future employees are forced to shoulder the risk of an insolvent system, Lehman has rewarded herself handsomely. Let’s be clear: while the County pension fund collapsed by more than 13 percentage points, Alison Lehman was laughing all the way to the bank.
Budget Growth Amid Crisis: 24.5 New Positions Added
Despite the pension crisis, the FY 2025–26 budget irresponsibly adds 24.5 new full-time positions, growing salaries and benefits by 9%—outpacing both revenue growth and the rate of inflation. This marks a disturbing trend:
From FY 2023–24 to 2024–25, the overall budget rose 4.9%, but salaries and benefits rose 8.5%.
The year before that? Similar trends.
All of this is happening while the County’s recurring local revenue can’t even cover its annual workforce compensation. That’s not fiscal strength—that’s structural imbalance.
A Lone “No” Vote of Courage
In the face of this deepening crisis, Supervisor Robb Tucker cast the only “no” vote on the FY 2025–26 budget. He wasn’t grandstanding—he was telling the truth: that Nevada County is walking straight into a fiscal wall.
Tucker’s vote was a courageous break from the Board’s long-running culture of approval and denial. He is the only Supervisor willing to challenge senior staff—especially CEO Lehman and Counsel Elliott—on the false narrative of a “balanced budget” while long-term liabilities go unaddressed.
Framework for Reform — No New Taxes
It’s time to move forward with fiscal reform, not new taxes. Nevada County can—and must—pursue a no-new-tax pension reform model rooted in common sense, accountability, and fairness.
Shift all new hires to a 401(k)-style defined contribution plan.
Prevent future unfunded liabilities by aligning public-sector retirement with private-sector standards.
Cap future pension benefits for non-union represented employees.
Preserve benefits earned to date, but limit future pension accruals for:
Elected officials
Senior county staff
Appointed department heads and non-union employees
Mandate transparency and require voter oversight
Publish unfunded liabilities, funding projections, and pension obligations publicly.
Require voter approval for any future pension increases.
Set a goal to restore 80% pension funding by 2030
Adopt a measurable benchmark to match the statewide CalPERS average.
Evaluate CalPERS exit strategy
Explore moving to a fiduciary-managed, higher-return, lower-cost retirement system.
Implement fair cost-sharing
Increase employee contributions—especially for non-union senior executive staff—so taxpayers are not left holding the bill.
Conclusion: The Cost of Complacency
Nevada County’s pension crisis is not a mystery, nor is it unsolvable. But it is entirely self-inflicted, enabled by years of performative responses, budgetary sleight-of-hand, and avoidance of responsibility by Lehman, Elliott, and the Board.
The Grand Jury told the truth—twice. The people of Nevada County are now the last line of defense against a deeper collapse.
No more excuses. No more delays. No new taxes.
What we need is honest leadership, structural reform, and a complete reset of the system that got us here.
