Shires writes: “Most public employees automatically receive a three to five percent “step” increase each year. The raises we hear discussed in the limited public releases about these negotiations are increases on top of these basic increases — the so called COLA or cost of living adjustment.

“For example, in Vallejo, a city which recently filed for bankruptcy protection, some unions were scheduled for 21 percent COLA increases over three years — on top of their regular step increases of 3-5 percent.

“These kinds of increases are unheard of in the private sector (try asking your boss for a 12 percent guaranteed raise for each of the next three years), but have become ubiquitous in California?s state and local governments.

“And this is just the salary portion of the conversation. Add on top of it full medical benefits for the rest of their lives, extensive overtime and an amazingly generous retirement system and you have a public finance system that is destined for bankruptcy — a destination rapidly approaching for the state and many local communities.

“While the result is shocking, the real failure is the secretive process that lead to it. The total lack of public information about these negotiation processes prevents the public from holding their elected officials accountable. Add in the fact that many of these very officials are elected due to major investments by these very employee unions (a topic for a later day), and you have a recipe for fiscal disaster. And taxpayers across the state are about to taste the fruits of that recipe.”

KICKER

SFGATE: Californians pessimistic about budget fix

“This is the fifth consecutive year that the Grand Jury has been one of the voices forcefully bringing this matter to the attention of the Supervisors and the public. The Supervisors consistently approved labor contracts covering the remaining 86% of the workforce that obligate the County to expenses that are not sustainable, and budgets that do not provide funds to pay down this obligation over time.

“The pattern has continued this year. Supervisors have said that they have learned their lesson, that they will do better, and that they are on the road to fiscal sanity. Their record says otherwise. In the past few months, three labor contracts have come up for approval, and in each case, the Supervisors as a group have failed to take any meaningful steps to address out-of-control health benefit costs, attributable largely to the generous union agreements.

“The Supervisors have been unable to maintain a united front because some supervisors have gone outside the “meet and confer” process, communicating directly with union leaders about matters that are being negotiated by the County’s negotiating team.”

In its June 24 response to the GJR, the BOS essentially agreed in principle to most of the findings of fact, then summarily rejected key recommendations.

The BOS claims it has implemented GJR recommendation (#1) to establish and promulgate its labor negotiation policy to its negotiation team, but rejected the recommendation (#2) that individual Supervisors should stop negotiating with labor leaders behind the backs of the body; nor would it agree to approve “fiscally prudent” labor contracts (#3)!

County leaders shined off the recommendation (#4) that a health benefit plan be developed and implemented—in German this is pronounced “Yah-Yah-Yah”—and rejected the recommendation (#5) that while OK for future non-union retirees, existing retirees ought not enroll in Medicare Part B but have the County pay for this til death do us part.

The BOS waved their hands dismissively and spoke German again to GJR recommendation (#6) to stick to the plan to reduce or contain OPEB costs (see #3 above), then rejected outright the recommendation (#7) to increase the 40% target level to 85%. The BOS claims that:

“Over time, the combination of current resource redirection, new tiers for new hires, and a budget for health care costs will fully fund the County’s liability.”

Excuse me? What manner of Supervisor speak is this?

These guys can’t even set a date certain for the blessed $20 million payment to the irrevocable OPEB trust account scheduled for sometime — somewhere in the 08-09 budget. Not to mention at least FIVE BIG IFs. According to Dan Borenstein’s research presented to the Contra Costa Taxpayers:

Even IF the BOS makes good on its promise to prefund $20 million; Even IF it ever gets around to adding a $588 million chunk by 2022-23; Even IF it can pay $100 million dollars a year thereafter; Even IF the County implements the proposed benefits changes to unrepresented workers, the County would still be $54 million short of 40-percent funding and still leave a 60 percent or $1.042 Billion balance due. Furthermore, even IF the BOS added the same benefits changes to unionized employees, the County would still owe $705 million after 30 years.

Sadly, this is what the BOS means by “fully” fund.

According to the Grand Jury, “It is imperative that the Supervisors take additional meaningful steps to get the County on a fiscally sound footing. The next key step involves establishing and holding tough negotiating positions with the unions that represent County employees. To do so will require a majority of supervisors who take seriously their duties to all, not just some, County taxpayers.”

On June 3rd, we recommend that voters defeat the reelection bids of incumbent Supervisors Federal Glover (District 5) and Mary Piepho (District 3).

We reject Piepho’s claims that she is a newcomer and not responsible for the debt, and that one must move slowly to initiate change. Contra Costa cannot afford Ms. Piepho’s stalling and excuses.

For three years Supervisor Piepho knew a fiscal day of reckoning was coming and did nothing about it and was put to sleep by John “Igor” Gioia. For three years, Ms. Piepho has played paddycake with the incumbent forces working against any change and fiscal restraint in Martinez. And now, with huge Independent Expenditure outlays on her behalf (wink-wink) —plus her open solicitation of support from the gang that has helped create the fiscal mess here in Contra Costa as well as Sacramento— Piepho has openly joined forces with opponents of fiscal sanity, unaccountable union interests, and those working behind the scenes toward the piecemeal dismantling of the Urban Limit Line on behalf of powerful campaign contributors.

If that weren’t enough, she has picked pointless fights with local constituents and Sheriff Rupf, and pursued her appointment to LAFCO despite myriad warnings from knowledgeable colleagues and insiders concerning potential conflicts of interest in serving on the same board with her husband.

Meanwhile Supervisor Glover claims that the County cannot solve the OPEB problem but must rely on some single-payer health insurance program to bail out the County. Such a statement is simply insane, irresponsible blather. There’s just no other way to say this, but, despite well wishers all around, it’s painfully obvious Glover is not at the top of his game. Unfortunately, most of his opponents are on record as accepting the 40%-solution as a “good start.” Such timid dissembling is comical. Hopefully, one of Glover’s opponents can force a November runoff and grow a pair.

County voters can begin the process of change by defeating Mary Piepho for re-election. Piepho, if re-elected, will not commit to opposing tax increases. Piepho’s opponent, Assemblyman Guy Houston, has stated publicly that he would, if elected, oppose tax and fee increases.

Voters should back Houston over Piepho for District 3 Supervisor.

Prices for food and gasoline are high enough. Taxes must not add to voters’ economic burdens.

Richard Colman
Orinda

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Send your OPEN MIKE post submissions to editor@halfwaytoconcord.com

Mary Piepho, our current supervisor has been sending out a campaign material touting her accomplishments of the past three years. The message is, this inexperienced member from the community swept in and has single handedly fixed all the county problems, in spite of the fact that the Board votes in lock step 5 to 0 on every issue. If I were on the Board with her I would be insulted that she gets all the credit. But then again, maybe they are happy under her “Leadership” to give her all the credit for the County Grand Jury report that came out on Friday:

“Supervisors have said that they have learned their lesson, that they will do better, and that they are on the road to fiscal sanity. Their record says otherwise.” The report says:

- Individual supervisors are individually communicating with labor leaders undermining the negotiation process
- The Board has continued to approve labor contracts through the last couple of months that “…in each case, the Supervisors as a group have failed to take any meaningful steps to address out-of-control health benefit costs, attributable largely to the generous union agreements.”
- The Board has targeted only 40% of the OPEB debt, the Grand Jury recommends raising the target to 85% of the debt. They say the Board should come up with a plan in the next six months as to how this will be achieved.
- The current annual “gap between the required and planned contributions” for OPEB is estimated to be $54 million. The Board is not required to actually “fund” that amount, but it must fund it, reduce it in some manner, or disclose the $54 million as a liability on the financial statements. Currently, the plan is to report the liability.

Guy Houston’s accomplishments in the State Legislature are too numerous to list in one blog. Here is but a sample of what he has accomplished in Sacramento:

- Equalization for school funding which has brought millions of extra dollars to not only Contra Costa County but under funded districts across the state.
- Introduced a bill to equalize county funding across the state, which would bring millions into Contra Costa County and other under funded counties in the state.
- A bill to enhance penalties for people that maliciously post someone else’s information on the internet.
- Authored a bill which helps address State’s critical shortage of specialists for disabled students.
- Introduced a bill to increase the tax exemption for 100% totally disabled veterans.

Additionally, he was appointed this year to serve on the Banking and Finance committee, the Local Government committee and the Transportation committee. He received the American Electronics Association prestigious award as “Legislator of the Year.”

Guy Houston doesn’t promise to swoop in like Superman and make this County whole overnight. But with his background and experience at the State level Guy has gained the support of the Assessor, the Auditor-Controller, the County Treasurer (the financial Big Three) and the Sheriff.

So let’s move away from the gender arguments, nice person arguments, hard working arguments and elect the most qualified candidate with a proven track record. That person is Guy Houston.

The latest estimate is lower than the $2.57 billion calculated two years ago. The reduction results primarily from the use of new actuarial assumptions, and secondarily, from recent board of supervisors’ action to modify the health care benefits for unrepresented county employees.

The liability is still staggering, because the board of supervisors has yet to make any meaningful changes to the generous health care benefit plans available to county employees and retirees covered by union contracts, despite three opportunities to do so in the past several months.

The county’s predicament did not develop overnight. It has been nurtured for decades by past boards that repeatedly agreed to increasingly expensive health care benefits in a labor-friendly environment, without any consideration of future costs. But in light of today’s clear understanding of the crushing impact that the obligation will have on the county’s ability to provide services, it is worrisome to see the current board appears to be continuing this trend.

Most of the county’s 39 union contracts expire in September of 2008. In the past several months, three new labor contracts have been approved. None includes changes to health care benefit plans that would begin to seriously address the county’s imminent financial crisis. This does not bode well for the outcome of future negotiations unless the supervisors take as realistic and tough a position with labor unions as it has with the County’s unrepresented employees.

If the Board of Supervisors either collectively, or any of its members individually, squander this opportunity to substantially improve the county’s financial situation in the name of political expediency or labor peace, out-of-control retiree health care costs will surely and painfully impact the county’s ability to deliver basic services to its more than one million citizens.

The complete report is available on the Contra Costa County Grand Jury web site: www.cc-courts.org/grandjury

First we hear from Mary Piepho that Contra Costa County is leading the state if not the nation and the world in handling its retiree health benefit debt. Really? Contra Costa’s OPEB obligation is heading toward $3-billion and is larger than the OPEB debt of five larger California counties — Alameda, Orange, Riverside, Sacramento and San Diego — combined. In offering a mere 40-percent solution, the only leadership we see is in the BOS failure to not deal with the political and structural realities that got us so far in debt in the first place.

Meanwhile, Federal Glover offers voters Rollie Katz flavored Kool Aid when he avers that the County cannot solve the OPEB problem. Rather we need a solution at the state and national levels in the form of Universal Healthcare. As if this will eliminate the current debt and obligation to current employees. This is irresponsible gibberish.

Unfortunately, many of the challengers during these televised debates were not very forthcoming, either. Most hemmed and hawed around the question from the Times’ Lisa Vorderbrueggen when she asked how to increase funding for OPEB when there is already a $51-million budget shortfall on the table.

Clearly, no one wants to address the elephant in the kitchen called cutting obscene health care giveaways to current unionized public employees. Times columnist, Daniel Borenstein, in a recent editorial suggested that, “instead of offering the county-subsidized health benefits, the county (c)ould provide a stipend of $250 a month to cover the cost of Medigap insurance. By one estimate, that simple change would save the county $37 million a year.”

These and other common sense suggestions prove that the issue facing Contra Costa County is not about money. It’s never about the money. The issue is having the vision for sane and fair policies that work, and having the courage and community support needed to take on the public employees unions that are eating taxpayers alive. Instead, all we hear from incumbents is, “Oh my, it took us forty years to get into this jam, and by golly we don’t want to upset the apple cart cause it’s all about relationships.”

The only reason these political sock puppets of the public employee unions don’t represent California’s more agricultural communities is because farmers already know what a load of bullshit looks and smells like.

In the end, despite the childish and self-righteous temper tantrums of SEIU Local One union rep Rollie Katz, the County in fact ends up favoring special interests by coddling union employees instead of funding critical services including health care for the poor and public safety. Please tell us, Supervisor Gioia, what’s so Progressive about that? How does it help working families who really need county services when at the end of the day, the only people who are being served are the union bosses and the politicians they support.

- No dual coverage
- Employees must enter Medicare at 65
- New Health Care tier for new hires beginning 2009
- Pursue Portability and cost savings
- Develop Task Force
- Fix health care subsidy at 2009 levels

Sticking it to non-union workers may be a timid but smart way to start the necessary cuts that should come from unionized classes as well. Despite the positive impact this could have on the current $2.6 Billion OPEB debt, one observer said, “Cullen is finally proposing the right thing. It should have come sooner as the BOS locked taxpayers into recent contracts including fire and the nurses.”

The Times reports today that Contra Costa County’s Board of Supervisors agreed to terms of a new contract with county prosecutors Tuesday, after 10 months of negotiations that included threats of a walkout. The deal includes 9.6 percent of mostly retroactive pay raises dating to 2006 for some of the Bay Area’s lowest-paid prosecutors. It also includes as much as $9,000 in student loan reimbursements for those who stay for five years.

AMAZINGLY…”The deal did not address retirement medical benefits. Grove called it disingenuous for county officials to bemoan steep retiree health care problems when the prosecutors were willing to negotiate a new, “reasonable” plan. Contra Costa County has one of the highest retiree health care liabilities among the state’s 58 counties, at a cost of $2.6 billion over the next three decades.”

“We were ready to negotiate it now. We were ready to give them a leg up on their negotiations with the other big unions,” he said. “For whatever reason, they refused.”

Time for the Board of Supervisors to get with the program or get out.