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More than half a million working Floridians saw their paychecks go down by three percent on July 1. All are part of the state retirement system, and all were forced for the first time to contribute to the fund. The legality of that 3 percent contribution will be in court this week.

556,000 teachers, corrections officers, and other professionals that are part of the state retirement system saw their paychecks shrink by three percent on July 1. Paul Brewer’s check was one of them.

“We’re just not going out to eat anymore,” Brewer said. “We’re looking at more generic brands, things like that. Whatever we can do to save a penny.”

Tallahassee is home to about 12 percent of the employees who are part of the state retirement system. The Economic Development Council of Tallahassee-Leon County says the local economy has taken a hit.

“It’s a 93 million dollars impact to this economy and that’s roughly 47,000 people,” EDC executive director Beth Kirkland said.

Statewide, the pension contribution has already taken more 300 million out of the economy since July.  We asked the state’s labor economist if that could be part of the reason for flat job growth in three of the last four months.

“It certainly can have an impact. But we haven’t done any analysis on it,” state labor economist Rebecca Rust said.

On Wednesday, a judge will decide if the state can keep taking the three percent or if the forced contribution violates a 1974 law.  The statute in question says a retirement paid fully by the government is a “contract and legally enforceable.”

“Lawyers for the employees will say the state seeking the three percent is similar to a bank with a 30 year mortgage saying you need to pay more after just 20 years.”

The governor’s office has hired an out of state law firm to represent the state in the suit.