Fix Pensions and Save Teacher’s Jobs

California taxpayers would save billions of dollars that would flow to public schools, community colleges and universities if state and local public employees retired with benefits comparable to those provided to employees of Silicon Valley’s top companies. Teachers’ jobs would be saved and school programs spared.

California Foundation for Fiscal Responsibility will release a study soon that shows California’s largest and best companies typically spend one-third what the state spends on employee retirement benefits. If California spent the same percentage on retirement benefits as large private employers, taxpayers would save nearly $3 billion this year alone, enough to pay the salaries of 40,000 teachers. The savings achieved by school districts and local governments are an added bonus.

Teachers’ retirement benefits aren’t the problem. Our report shows that teachers contribute more of their salaries and collect less in benefits than other public employees. Prison guards, for example, retire seven years earlier than teachers with benefits that are 77 percent higher. Since teachers aren’t covered by Social Security, their lifetime retirement income is about the same as retirees from large Silicon Valley companies who participate in their employers’ 401(k) plans, earn similar annual wages and retire at the same age.

The problem that teachers and taxpayers must resolve is the lack of a sustainable funding mechanism for CalSTRS, the teachers’ etirement system, which carries $56 billion in unfunded liabilities — $127,000 for each of CalSTRS’ 440,000 members. Pension reform will give teachers better benefits than they have now and deliver them through a system that isn’t run by the bankruptcy courts.

Read the rest at SJM

City Budget Proposal Released

Find Part I here and Part II here.

City data not published

Increased access for the public and staff to city data can be facilitated by simply publishing data to a simple website. San Fransisco example. What Encinitas does.

E-Public Communications

In an effort to better comply with the state’s laws on open meetings and public records, The City of Saratoga has adopted a new electronic communication policy for its council members and planning commission members. “We are in a constant state of discussion about the best way for the city to comply with its various obligations under the law, and the various interests and desires and demands of a community that communicates with the city via e-mail,” said city attorney Richard Taylor during a joint meeting between the council and commission.  Although current laws were “developed in the days of pen and paper,” they still apply to current forms of electronic communication, he added.

Council and commission members who were using their personal e-mail accounts to respond to questions and comments from citizens were given a new city e-mail account and were warned by Taylor to no longer use their personal e-mail accounts for city business. “If you were to use your personal account for city business, then when we get a public records request, we have to be sure to look through your personal accounts,” Taylor said. “If we get sued, we have to tell you to freeze and not delete anything in your personal or business accounts.”

The policy also forbids the council from using “e-communication” during meetings.

The group also discussed adding a text message to the top of all e-mail communications that would alert members and residents not to forward any communication from one council member to another.  E-mails communications that discuss policy issues among a majority of the council members can be defined as a “serial meeting,” which is illegal under the state’s open meeting law, the Ralph M. Brown Act.
Saratoga News, 9/1/09

San Diego Talks Pensions. Encinitas Timid or Fearful.

The VoSD has been covering the spectrum of participants in the negotiations over finding an avenue for pension reform in San Diego. The talks don’t even seem to include a seat at the table for the staff, which is unfortunate. Compare that to the Encinitas City Council majority who have avoided this issue for years and is now either saying they don’t want discussions, much less decisions, on pension policy before going into secret backroom meetings with the unions.

Santa Clara Goes for Sunshine

SJMN County to Consider Sunshine Ordinance

Most of the jurisdictions are located in the greater Bay Area. They all grant quicker, cheaper and simpler access to public records than would otherwise be made available. The list includes San Francisco, Contra Costa and San Bernardino counties and the cities of San Jose, Milpitas, Oakland, Berkeley, Benicia, Vallejo and Riverside.

Terry Francke, a longtime open-government advocate and general counsel for the nonprofit Californians Aware, praised Cortese’s effort. But, he cautioned, the search for sunshine may take a long time. Berkeley’s recently crafted ordinance, for example, came after 10 years and 24 draft ordinances. And it now faces a challenge from a citizen-driven ballot initiative that seeks even greater access than what city officials approved.

“I’d like to see every county — and for that matter every city — have one. But this tends to be slow going because the advantages and the merits of having a sunshine ordinance are more readily apparent to residents than to the government agencies that are being asked to adopt them,” Francke said. “So it’s not like a good government fad that just spreads like wildfire” among elected officials.

First Encinitas Citizens Initiative Project Meeting

The first ECIP meeting was considered a hit. It was attended by residents from throughout the city and by people with a wide variety of policy focus.

From the: Coast News Group  Coverage – Coalition forms to address citizens’ concerns

“At the core of this is good government; transparency, trust and integrity,” Wagner said. “All the other issues stem from a lack of a transparent government.” Wagner said the group was solution-oriented, with a goal to create “transparent processes to deal with issues.”

“I think it’s a good idea that we hold City Council accountable,” Collier said. “The council is there to represent the people not the special interests,” Collier said. “I think we need to take the next step as a community.”

Encinitas Citizens Initiative Project

 

Encinitas Citizens Initiative Project
Community Workshop Invitation

The Encinitas Citizens Initiative Project is seeking the community’s input.

The Encinitas Project was formed to develop public policy solutions to difficult issues facing the city, which have been marginalized by the Encinitas City Council. While the Council makes progress on safe issues, we will tackle the big issues ignored by our Council by putting them on the ballot. To be successful, the Project plans to focus on a set of issues and solutions that are recognized and supported by a vast cross section of Encinitas residents.

You can help. Please give us your input at the first Encinitas Project citizens’ workshop to be held:

March 21, 2011
San Diego Credit Union Meeting Room
501 North El Camino Real
 

Presentations 5-6 pm
Panel Q & A 6-6:30 pm
Breakout Discussions 6:30-7:00 pm

Citizens have already proposed a diverse set of candidate initiatives:

Open Government

Increased access to public information and decision making. Ensure accountability for open government law violations.

Competitive Management Practices

Require competition and oversight in contracting. Require competitive appointments to top city positions.

Pension Reform

End the practice of passing all the risks of pension debt to our children.

Upzoning (Increasing Development Rights to Allow Higher Building Density)

Ensure taxpayer subsidized developments benefit the public’s interest.

City Council Organization

Term-limits and rules for council appointments.

Low Income Housing

Increase access and oversight of mandated programs. Ensure taxpayers are not being cheated in related development schemes.

Current project participants span the political spectrum and have come together to achieve common goals. The objective of this first workshop is to identify and select which issues should be tackled first.

For more information or to suggest other issues and solutions to be considered email encinitasproject@gmail.com.

The Encinitas Taxpayers Association is a sponsor of this project.
See also: Patch and NCTimes Coverage.

Official Says No More Pension for Top Brass

Larson wants Fresno County to stop offering pensions to top brass

Fresno County Supervisor Phil Larson has an idea for how to trim the county’s soaring pension costs: stop offering pensions to county brass.

Next Tuesday, Larson is expected to unveil plans to remove the Board of Supervisors and at least two employees –­­ the county’s top administrative officer and the county attorney — from the retirement system. They’d be offered a less costly 401K plan instead.

“Anybody who makes the salary we do can certainly plan for their retirement through a 401K,” Larson said recently.

Larson’s reasons for wanting the change go beyond cost-savings, which he acknowledges would be relatively small.

First, the move would eliminate the conflict of interest he says exists with supervisors and top managers making decisions about a pension plan they benefit from. Secondly, the change would set an example for other county employees, who may be asked later to make concessions regarding pension benefits.

Larson is the only county supervisor who is not currently enrolled in the county pension plan.

– Kurtis Alexander

The Encinitas City Council advertised their new city manager slot as 100% Calpers.

Lessons Learned?

The multi-term members of the Encinitas Council bring a lot of experience to the table in establishing long-term financial risk in the form of pension liabilities and salary schedules.

Coming out of backroom negotiations in 2005:

Stocks, Houlihan, Guerin and Dalager approved a pay package that would give a staggering 35 percent raise to city workers in the form of a lavish, lifetime boost in their retirement incomes. For good measure, ordinary wages would rise 3.2 percent annually for three years. All this while state government wrestles with billions of dollars in projected deficits, a precarious condition that threatens the fiscal health of local governments.

One year later the city declared it was unable to pay for all its priority projects (library, Hall park, fire stations, & public works yard), and would take out $20 million in loans.

Food for thought: Only the Library and the public works yard have been completed to date. The Hall park phase I is still officially underfunded.

Coming out of backroom negotiations in 2008:

Barth, Stocks, Houlihan, and Bond approved a 15% pay raise over four years right as structural problems in the economy became more difficult to ignore. It had been conventional to approve 3 year contracts. The pay raise resulted in a proportional increase in pension liabilities.

Several citizens asked the council to rethink a four-year agreement because of the housing slump, unemployment and other economic uncertainties. It was too late, the decision had already been deliberated and endorsed behind closed doors.

At the time, “If I were in private business, I would not lock in the kind of increase you’re considering now,” said Gerald Sodomka of Cardiff.

Kevin Cummins suggested a shorter contract or a contract with a clause allowing the terms to be revisited if the economy didn’t hold up. The public comments were blown off. It was already a done deal.

Council Member Bond did point out that the city has a notable stabilization fund that can be tapped if revenues come in short due to a short economic recession. Regrettably, the council doesn’t seem to realize that avoiding a budget squeeze is not the only reason to have gone with a shorter contract.

It was unclear what the labor market was going to look like in 1, 2, 3 or 4 years, but there was good reason to think things were structurally unsound in the economy. The private sector was already pulling back on benefits, salary, and staffing and parts of the public sector would follow.

In hard times it is tougher for the unions to bargain for raises exceeding salary increases found in the private sector. The union probably knew this and they wisely “negotiated” a contract that will got their union members (and, in practice, management) through the rough spot unscathed. That is probably why there were audible, but restrained, cheers from staff when the council gave them 4 years of unconditional raises. It should be sobering to the taxpayer that staff actually cheered the council’s unanimous decision.

No one on the council applied business sense to that decision. The negotiation process did not result in a wise or fair process or result.

This week Jerome Stocks made a sturdy effort to make pension reform part of union contract negotiations.