A Growing Trend? Voters in Major Calif. Cities Approve Public Pension Reform
- Posted on June 6, 2012 at 4:00pm by
Becket Adams
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SAN DIEGO (The Blaze/AP) — Voters in two major California cities overwhelmingly approved cuts to retirement benefits for city workers in what supporters said was a mandate that may lead to similar ballot initiatives in other states and cities buried under mounting pension obligations.
Public employee unions that aggressively fought the measures weren’t able to overcome the simple message supporters used to attract voters in San Diego and San Jose: Pensions for city workers are unaffordable and more generous than many private companies offer.
“The public is frustrated,” said San Diego Councilman Carl DeMaio, a Republican who staked his mayoral bid on the pension measure and advanced to a November runoff in Tuesday‘s election to lead the nation’s eighth-largest city.
In San Diego, two-thirds of voters favored Proposition B while the landslide was even greater in San Jose, the nation’s 10th-largest city. With all precincts counted, 70 percent were in favor of Measure B.
San Jose (left) & San Diego (right)
“The voters get it, they understand what needs to be done,” said San Jose Mayor Chuck Reed, a Democrat who has called pension reform his highest priority.
Shrinking tax revenues during the recession are also responsible for service cuts in San Diego and San Jose, but pensions were an easy target. San Diego‘s payments to the city’s retirement fund soared from $43 million in 1999 to $231.2 million this year, equal to 20 percent of the city’s general fund budget, which pays for day-to-day operations.
As the pension payments grew, San Diego’s 1.3 million residents saw roads deteriorate and libraries and recreation centers cut hours. For a while, some fire stations had to share engines and trucks. The city has cut its workforce 14 percent to 10,100 employees since Mayor Jerry Sanders took office in 2005.
San Jose’s pension payments jumped from $73 million in 2001 to $245 million this year, equal to 27 percent of its general fund budget. Voters there approved construction bonds at the beginning of the last decade, but four new libraries and a police station have never opened because the city cannot afford to operate them. The city of 960,000 cut its workforce 27 percent to 5,400 over the last 10 years.
Tuesday’s votes set the stage for potentially lengthy legal challenges by public employee unions. The measures are unusual because they address pensions for current employees, not just new hires.
Opponents say the measures deprive workers of benefits they were counting on when they were hired. Some workers decided against potentially more lucrative jobs with private companies, figuring their retirement was relatively safe.
Those arguments failed to resonate with voters.
June 5, 2012: San Diego Mayor Jerry Sanders speaks at a
rally for supporters of Proposition B. (AP)
“A lot of employees are disheartened,” said Yolanda Cruz, president of the San Jose Municipal Employees Federation, who called the outcome disappointing. “We‘ve been made the full problem of what’s been going on.”
The ballot measures differ on specifics. San Diego’s imposes a six-year freeze on pay levels used to determine pension benefits unless a two-thirds majority of the City Council votes to override it. It also puts new hires, except for police officers, into 401(k)-style plans.
More than 100,000 residents signed petitions to put the San Diego measure on the ballot.
Under San Jose’s measure, current workers have to pay up to 16 percent of their salaries to keep their retirement plan or accept benefits that are more modest. New hires would get less generous benefits.
Reed joined an 8-3 City Council majority to put the measure on the ballot. He said after Tuesday’s vote that he expected other cities in financial binds to pursue similar measures.
“It‘s novel but it’s certainly not radical,” he said. “Mayors across the country are very interested. We‘re at the leading edge but we’re not alone.”
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Comments (59)
US Navy EOD Vet
Posted on June 6, 2012 at 8:39pmAfter last night in Wisconsin and now California, a Tsunami is about to roll over unions and their destructive and un-American policies all across America. Wait till November!
Report Post »KKC003
Posted on June 7, 2012 at 2:12pmYou cant make promises you cant keep- it is apparent with the Unions past, poor management, bully tactics, and bad ideologies! We must fix this now!
All our jobs are going overseas because of the imbalance.
If we don’t work on it now – everyone will be out of work
We have a lifetime of correction in the works but it must be done- thank God there are men and women willing to take on the task of getting it corrected.
Please keep faith and keep our nation from destruction of lies (unions), get rid of communist and socialistic/marxist/progressive agendas.
Report Post »Ask questions, verify what you are being told, do your homework- you have been lied to for decades- now is the time to fix it.
Free enterprise works, small government is needed, and quit spending- NOW! Vote responsibly, this maybe our last chance to turn this ship around and save this Nation from total financial destruction. Hang on!
Armyof One
Posted on June 6, 2012 at 8:36pmNorth of San Diego, and south of San Jose, is San Luis Obispo. We were first to cut pensions AND collective bargaining for public workers. Despite a well financed campaign by unions, our measure won by a more than 2-1 margin.
Hmmm..seems we don’t have the doom and gloom financial cloud over the town anymore :)
Report Post »teddie888
Posted on June 7, 2012 at 10:47amWhat they aren’t reporting is that Police & Firemen are exempt from the cut back. They get to keep theirs.
Report Post »My retired Calif cop friend gets $8,000. a month
blackyb
Posted on June 6, 2012 at 8:35pmWhy are the servants getting more money that the people who pay them?
Report Post »blackyb
Posted on June 6, 2012 at 8:34pmWho is working in California? Many are on dope, many are on welfare, many are homeless, many are living in their parents’ basement because their liberal arts degrees do not prep them for decent jobs or the jobs are taken by the elitists who are out hunting trees, whales and frogs to save so people will not be able to live off the land. They have run many of the corportations and business people out by over taxing them. Who is going to pay all these over-inflated demands put upon those who are staying? There are probably more government workers than there are tax payers, if not it soon will be. Maybe they can get some more of that Obama money or get George Soros and/or the Hollywood elite to bail them out. The rest of the people are tapped out, doped up or just plain tired of it all and moved away. Uh, good luck with all that.
Report Post »progressiveslayer
Posted on June 6, 2012 at 8:00pmWell yes they finally figured it out that the state is broke and major changes have to be made,in a perfect world there wouldn’t be any unions. When it gets worse with the debt unions will have to be done away with,they‘re parasitic and they’re bankrupting several states.
Report Post »girlnurse
Posted on June 6, 2012 at 7:50pmHow bout Congressional salaries and benefits!?
“After serving in Congress for 5 years, a member of the House or Senate is entitled to full retirement benefits. These benefits include health insurance coverage as well as pension benefits paid through the Federal Employee’s Retirement System (for members initially elected after 1984). Senators and representatives initially elected in 1984 or earlier receive pension benefits paid through the Civil Service Retirement System”
Senate Leadership
Majority Party Leader – $193,400
Minority Party Leader – $193,400
House Leadership
Report Post »Speaker of the House – $223,500
Majority Leader – $193,400
Minority Leader – $193,400
US Navy EOD Vet
Posted on June 6, 2012 at 8:45pmYou can retire fully vested in California after 5 years of government (municipal, county and state) employment. You earn 2.5% for every year you worked under this plan (CalPers) retroactively. That means if you made $100k a year and worked for 25 years, you make $62,500 yr retirement. Also, you can retire very early and even quit and be rehired at a hire wage starting the process over again. Also, check online at what government workers make in California: Lifeguards up to $200k/yr, police in smaller municipalities up to $250/yr, etc. And people live longer now, so those pensions have to be paid for many decades.
Report Post »girlnurse
Posted on June 7, 2012 at 3:19amHi Navy! I was in Navy too.
Report Post »Yes, Im fully aware…..I’m in Ca. too!
How bout those “retired annuitants”? Are you familiar with that sham??? They get a full retirement then they come back as a “retired annuitant” and get their retirement pay PLUS the salary they were making! Im getting sick jus talking about it..
Benjack
Posted on June 6, 2012 at 7:34pmFubared
Posted on June 6, 2012 at 4:48pm
Yet but at least they all have 10 round mags only.
Cabela’s in Reno has the higher capacity available
Report Post »dmerwin
Posted on June 6, 2012 at 7:24pmThe hell you say?
Report Post »Cutie_Pie
Posted on June 6, 2012 at 7:23pmSan Diego is a conservative city, thanks to a large military presence so no surprise there. But a city north of us?? Nice! A little ray of hope just peaked through. There’s hope for California yet :)
Report Post »cassandra
Posted on June 6, 2012 at 7:07pmI say it took the rise of the TEA PARTY to wake folks up
Report Post »FatFreedom
Posted on June 7, 2012 at 12:08amYes, and we must make sure that everybody stays awake! Get involved on a local GOP and stop the Rhinos and promote only principled small government candidates. More than half of the R’s in DC today needs to be replaced!
Report Post »jnobfan
Posted on June 7, 2012 at 8:19amBingo!!! ding ding ding
It has to be done. Politicians taking huge donantions from unions or anybody else and then sitting down to negotiate contracts with them with Public Money HHMMM what could go wrong there?
Its amazing it lasted this long. It was/is a crazy idea in the first place.
Report Post »rickc34
Posted on June 6, 2012 at 7:03pmHey welcome to our world the tax payer who pays your salary and pension . It is not that we do not appreciate the work you do, we do but some of you just sit and do nothing. Public employees are supposed to serve but they act like kings and queens with the union lawyers pointing a gun at the public. No longer your time has come and we cannot afford you.
Report Post »SquareHead
Posted on June 6, 2012 at 6:03pmThere is only one solution for the Public employees.
1. Eliminate public pensions, including existing ones.
Yes I know you where promised a pensions, but too bad. The governments lies to us in the private sector every day, by raising our taxes and adding undue burdens. Adding temporary taxes and toll booths that end up being permanent.
2. Cut salaries to 5% less than the private sectors mean wage for the same skill.
After all the public jobs has increased job security, and less pressure than the private sector.
3. Health benefits be the same as the average private job, meaning high deductible HMO
4. Pensions should reflect private sector average, which is work until you are a senior citizen, unless you have saved enough to quit earlier. That means that save your own money through an IRA like everybody else. If you don‘t save you don’t have!
Report Post »SquareHead
Posted on June 6, 2012 at 6:43pmcont..
No more of this working 20 years as a Cop, Fireman, or Teacher and you have a pension.
That is unrealistic.
It does not happen in the private sector
That is theft.
You make the private teacher pay taxes through the nose until they stop working at 70, so an inferior teacher can retire with 50% pay at age 50!!! Actually it is a form of slavery as far as I am concerned. Forcing one person, to pay for another to retire.
Don’t give me the crap that being a cop is dangerous baloney. So is being a farmer, or construction if you look at job injuries and deaths. In fact many security jobs are more dangerous that being a cop, now go and compare pay to see what the value of that job is… Most cops in the suburban area increasingly just a nuisance harassing with silly tickets etc.. Not their fault they are merely doing what they are told, which is often to go and raise revenue for the town.
Report Post »If you are still mad because I dare say anything negative about “The Men in Blue” crap, and how their valor in keeping us safe, and the danger they are exposed to justifies them only to have to work 20 years, then what about our troops!!!! Getting shot to pieces and working for almost minimum wage, coming home missing limbs! What about the troops pension?
So the stupid argument that cops need to be able to retire after 20 years is baloney, when you compare that to our troops.
SquareHead
Posted on June 6, 2012 at 6:45pmOur troops we should take care of if anything. They really risk their life, unfortunately most of the time for the folly of Washington, and when they are stuck in that wheelchair we tell them that we are free because they killing people in some mountains half around the world so they won’t get depressed thinking about their future in the wheelchair, and how they were used as mere tools.
Report Post »If nobody wants to be a cop in a dangerous city where there is real crime and real danger, then contract it out to private security. It would cost less and probably produce better results.
cassandra
Posted on June 6, 2012 at 7:05pmWell Said !!!!!!!!!!!!!!!!!!!!!!!!!!!!! let them join the real world like the rest of us, they forgot they work for US
Report Post »Sargon_Starblade
Posted on June 6, 2012 at 5:49pmI am a native Californian. After last night I am beginning to get a little bit of pride back for my state. They say that all whacky ideas start in California. With all the states that think pension reform and cutting taxes are whacky… hopefully this catches on.
Report Post »lukerw
Posted on June 6, 2012 at 5:07pmHow many Tacos a day should they eat?
Report Post »RightPolitically
Posted on June 6, 2012 at 4:49pmSlowly, ever so slowly, EVEN Californians are waking up. That‘s sayin’ something!
Report Post »lisa2994
Posted on June 6, 2012 at 4:43pmBeing as how mad the american people are getting and wanting to vote everyone out of office..Maybe just maybe they are starting to see the light (doubtful) on what needs to be done and that we are not going to take it anymore. California is full of liberal people but they do have republicans/conservatives as well. Unfortunately the liberal types out number them.
Report Post »garbagecanlogic
Posted on June 6, 2012 at 4:43pmPerhaps all the conservatives in Cally Porn E Ah finally woke up along with a few liberals who have a teaspoon of common sense.
Praise Be To Obama. Psalm 109:8
The U.S. Out Of The U.N.
Report Post »The U.N. Out Of The U.S.
Trapper
Posted on June 6, 2012 at 6:15pmHey Garbageduesch, first of all it is CALIFORNIA, second of all, we produced guys like Reagan! Yes, my state is a bit screwed up from all the east coast transplants who grew tired of the cold winters and moved here, funny thing is this state use to be the 5th largest economy in the world, however, we did have a smog problem, Socal, the right reforms were put into place to clean up the air, unfortunately, the east coast transplants used these reforms to knock out all businesses. If you are ever in town go to an Angel game, all those “A’ holes with their Boston and Yankee hats on? THEY ARE THE PROBLEM, MOVE!
Report Post »FatFreedom
Posted on June 7, 2012 at 1:51amGreat verse for Obama :)
Report Post »Psalm 109:8 Let his days be few; and let another take his office.
slvrserfr
Posted on June 6, 2012 at 4:34pmCalifornia making an effort that actually favors leaning center right? I never thought I’d see the day…
Report Post »Independent4233
Posted on June 6, 2012 at 4:25pmI hate to be a wet blanket, but nothing is going to stop California from going down hill financially.
As of this month, their budget shortfall for the state is 4 billion dollars and growing due to falling tax revenues, with the cities doing just as badly, especially Los Angeles which is close to imploding.
Economists forecast that HUGE pension and salary cuts are destined for this year and the next, in addition to what they’ve already made.
It looks like California will once again lead the nation in something, only this time it will be bankruptcy and default.
With about 40 million people staring austerity cuts in the face, that’s going to be a lot of p****d off people to deal with, many of whom are armed, unlike Greece, Spain, Portugal and Ireland, all of which are in the same financial fix.
Report Post »Fubared
Posted on June 6, 2012 at 4:48pmYet but at least they all have 10 round mags only.
Report Post »Beckett
Posted on June 6, 2012 at 4:16pmThey will be challenged in the courts and the court will rule against the voters.
Report Post »HKS
Posted on June 6, 2012 at 4:15pmWell, you could have knocked me over with a feather, visited California recently and found that outside of LA and San Fran area there are mostly regular people there. I was quite surprised.
Report Post »Trapper
Posted on June 6, 2012 at 6:34pmThank you HKS, yes we do have sane people here, a subject that may interest the rest of you, Illegal Aliens are not the problem here. The problem stems from a welfare mentality that now exists with all colors! I have employed Illegal Aliens more than a few times. We want the majority of these people as citizens. We should have a trade in policy for all those lazy SOBs who are dragging our country down! Believe me, Illegal Aliens just want an opportunity to provide for their families, Did we ask for “Papers” from the Jews of Germany?
Report Post »eyestoseeearstohear
Posted on June 6, 2012 at 4:14pmAHOY!!! AHOY THERE!!!
GOV. SCOTT WALKER HAS JUST THROWN YOU AN EMERGENCY LIFE RAFT…
GRAB THE LINE AND COME ABOARD!!!
~~~~~~~~~~
Other States NEED to grab hold of this TO SAVE THEIR SINKING STATES (SOSS).
Report Post »hauschild
Posted on June 6, 2012 at 4:09pmHow could it have taken THIS long? It doesn’t seem possible that the majority of people could be that clueless for such a long time. I mean, it’s such simple arithmetic. And, to think these people could be teachers or any other profession where you’re putting your faith in them – frightening, without question.
Report Post »Just in time
Posted on June 6, 2012 at 3:54pmIt is unusual to hear that a Democrat gets it. Good for him. California may have a chance if this sort of thinking catches on.
Report Post »JACKTHETOAD
Posted on June 6, 2012 at 3:34pmHoley Moley! I thought I’d lost the ability to see and comprehend the English language for a second there! Someone get over here fast and help me get this fork back out of my arm. (This recipe called for a little more than a pinch.)
Report Post »eyestoseeearstohear
Posted on June 6, 2012 at 4:17pm:)
Me too!
Report Post »I thought I’d GONE BLIND and mis-read it.
I had to read it a few times to MAKE SURE.
:)