HALFWAY TO CONCORD » public employee

How cities like Vallejo can solve fiscal crisis and avoid bankruptcy

admin — Mon, 03 Mar 2008 22:20:01 +0000

According to the California Foundation For Fiscal Responsibility (CCFR), Vallejo is not facing a municipal fiscal crisis alone in California, it is just the first city to run out of cash. The root cause is promised increases in wages and benefits for government employees that are not supported by tax revenues.

Looking for answers, Vallejo leaders have chosen to reduce services and increase fees to close an $8 million shortfall. The unions have reluctantly agreed to accept smaller raises than provided by their current contracts and they have agreed to personnel cuts. The city is asking bond holders for more time to pay which only increases future interest costs. Spending on infrastructure and much needed road maintenance will be curtailed indefinitely. CFFR recommends immediate adoption of the following steps toward fiscal responsibility:

1. Stop Illegal Payments for Extra Pension Benefits Related to Services Rendered Years Earlier
2. Adopt a Second Tier Pension Plan for New Hires
3. Reduce Compensated Absences
4. Discontinue Allowing Employees to Purchase Years of Service

California Legislative Analyst Office releases pension and health benefit report

admin — Mon, 07 Jan 2008 23:12:48 +0000

The Public Employees Post-Employment Benefits Commission—appointed by leaders of the California Legislature and Gov. Arnold Schwarzenegger—released an over-300-page report this morning on pension and retiree health benefits policy for state and local governments in California.

A first-of-its-kind statewide survey identified at least $118 billion in unfunded retiree health (also known as OPEB) liabilities, as self-reported by state and local governments in California, and an unfunded pension liability for all public systems of $63.5 billion. This means that, while pension liabilities are 89 percent funded statewide, retiree health liabilities generally are not funded at all. The bipartisan commission concluded that “prefunding OPEB benefits is just as important as prefunding pensions,” and “the ultimate goal of a prefunding policy should be to achieve full funding.”

For links to the commission’s report, press release, and other materials, visit the LAO Retiree Health Care News and Reports Web site at: http://www.lao.ca.gov/retireehealth/RetSummary.aspx?id=358

How will Contra Costa County pay for its OPEB debt?

admin — Thu, 27 Dec 2007 04:56:29 +0000

Supervisors Mary Piepho and John Gioia will present this proposal to the Board of Supervisors soon. Meanwhile Rollie Katz of Local One truly believes that somehow the debt will all go away once we have gubbermint-run single-payer nationalized healthcare. Like the government would bail out existing OPEB debt. Man, what’s he smokin?

And Maria Alegria has the nerve to call Pinole Recall supporters thugs!

admin — Thu, 20 Dec 2007 23:41:59 +0000

This nasty hit piece against the Pinole Recall was sponsored by the IAFF, which represents Pinole Firefighters. Not unsurprisingly, the Pinole Firefighters’ contract is up for renegotiation in 2008.

Since 2004 to June 2007, the IAAF has contributed $6,000 to councilmember and former Mayor Maria Alegria who is up for recall. This does not count monies from the union spent on her behalf in the reporting period from July thru end of this year that will be posted January 8.

This ad is just a small part of Alegria’s $40,000 smear attack on the good folks of Pinole. Selling Pinole taxpayers down the river to public employee unions who know she can help craft a hefty pay increase for them if she survives the recall, sadly, is part of the deal in Contra Costa County.

And Alegria, in her own hit piece mailer, has the nerve to call Pinole Recall supporters, “thugs.”

Amazing.

SLIDESHOW: Contra Costa County headed for fiscal train wreck

admin — Mon, 05 Mar 2007 18:44:50 +0000

See PowerPoint presentation made by the County Finance Committee to Board of Supervisors on March 1, on County Liability for employee and retiree healthcare benefits.