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As budgets grow tighter, state and local unions dig in to protect their pay and pensions
Thursday, June 11, 2009 6:34 AM PDT
It is fascinating to watch how the budget struggles in Sacramento are playing out.
The June 4 issue of the Sacramento Bee was replete with examples of how some of our governmental practices have gotten so out of hand that they may sink the entire ship.
According to the Bee study, the average base pay for a state worker (university system excluded) in 2008 was $63,815. Compare that to the federal statistics which show that the average pay in 2008 for all Californians was $48,090.
In a three-month period, unemployment in California went from 10.1 percent to 11.2 percent. While companies in Lodi and throughout California are displacing workers and are shutting facilities, state government grew by 1,362 full-time jobs in the same period.
State and local pension benefits are the most generous of any public pensions in the nation. Sacramento County needs to come up with a staggering $404 million next year to feed its employee pension fund. That is more than double the amount the county paid out in 2006 and 10 times the amount spent in 2001. County retirement formulas allow workers to retire at 55 with full benefits. A worker with 35 years under his belt receives 70 percent of his pension. A deputy sheriff can retire as young as 50. If he has worked 33.3 years, he takes home 100 percent of salary as a retirement benefit. I wonder how many retirees from General Mills have walked out the door with that package in their pocket?
On the state side, the Bee notes that state workers will be owed $48 billion in future retirement benefits. It will take a true magician to meet that number some day down the road.
It is no secret that Lodi is working hard to balance its budget with the least amount of pain to citizens and employees. As difficult as this task may be, it pales in comparison to the problems faced by elected officials in Sacramento.
In the same issue of the Bee, reporter Jim Sanders wrote of another travesty foisted upon us by our state leaders. By a vote of 43-16, the Assembly recently passed legislation requiring cities and counties to obtain state approval before they could file for bankruptcy protection. Advocates of the bill (AB155) have been led by the powerful California Professional Firefighters Union. They and other civil service labor unions are fearful that a bankruptcy filing by a local county or city would void their contracts and seriously damage or eliminate their generous retirement benefits. Some of the convoluted thought behind the bill is that a bankruptcy filing by a local municipality could have an impact on California's credit rating — which is hard to comprehend since the state's credit rating is already in the dumpster.
Sanders notes that only three local governments have ever sought bankruptcy protection. Heaven (am I permitted to use that word?) forbid that Lodi should ever get to that point!
What is ironic is that continual tapping of municipal and county treasuries by the state has upset the stability of local economies. Even when Lodi balances its 2009-10 budget, the state has indicated that it may pluck an additional $1.5 (+/-) million more, of our local dollars to help fix their problems.
Vallejo recently sought bankruptcy protection. From what I have been able to gather, they agonized over the issue and sought pre-eminent legal and financial advice before they made their difficult decision. I can't imagine that any other city or county wouldn't do likewise. To suggest that any agency would require approval from the California Legislature as part of that process is ludicrous. Their mismanagement has driven this state to the brink of insolvency. They are in no position to dictate how any other governmental agency should handle their fiscal problems.
The bill goes to the Senate next — would anyone care to bet me a furlough day it passes?
Bob Johnson is a member of the Lodi City Council.
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Lodian wrote on Jun 21, 2009 12:47 PM:
mark wrote on Jun 17, 2009 9:15 PM:
But since you mention "fire chiefs, police chiefs and highway patrol heads", I'll just point out that they also are not eligible for 100% retirements.
I'm familiar with the pension "spike" you're referring to, but it was ruled at least 7 years ago that retirement can only be figured on the employee's annual salary (excluding any overtime pay, holiday pay, bonus pay, merit pay, etc – all of which could be used to "spike" the pension).
So the bottom line is, 90% retirement is still the max. And remember, that’s the max. Most people retire with far less than that. If they make it to retirement age at all.
Mr. Johnson apparently failed to mention all of that. "
Lodi FF wrote on Jun 17, 2009 11:27 AM:
tosh conn wrote on Jun 17, 2009 9:54 AM:
what22 wrote on Jun 17, 2009 9:24 AM:
Jaysam1 wrote on Jun 17, 2009 8:26 AM:
1) According to the Bee study, the average base pay for a state worker (university system excluded) in 2008 was $63,815.
Correction: the average state worker does NOT make that amount - it is top heavy upper management and peace officers that brings that total up. Those classifications are a small portion of the "average" state worker. Additionally - comparing hundreds of thousands of minimum wage jobs to 235,000 govt jobs is skewed in itself.
2) There are NO 100% retirements for ANYONE. Period. Check your facts.
3) State Govt grew by 1300 positions in three months because they needed additional staff to cover the increasing amount of unemployed workers. Check your facts next time and look at which depts actually hired for those three months. "
what22 wrote on Jun 16, 2009 4:11 PM:
OTH wrote on Jun 16, 2009 8:08 AM:
You're all of 50? You devil you! "
alumn95 wrote on Jun 15, 2009 2:17 PM:
wtf wrote on Jun 15, 2009 11:37 AM:
reality wrote on Jun 15, 2009 9:45 AM:
Adam Dados "
wtf wrote on Jun 15, 2009 8:22 AM:
....While many political leaders will deny the assessment regarding their similarities with serial killers and other career criminals, it is part of a psychopathic profile that may be used in assessing the behaviors of many officials and lawmakers at all levels of government.
http://www.examiner.com/examiner/x-2684-Law-Enforcement-Examiner~y2009m6d12-Serial-killers-and-politicians-share-traits
Corporations also share these tendencies. See the movie, "The Corporation" which can be viewed in 23 chapters on YouTube.
http://www.thecorporation.com/index.cfm?page_id=46 "
wtf wrote on Jun 15, 2009 8:19 AM:
...Ironically, these same traits exist in men and women who are drawn to high-profile and powerful positions in society including political officeholders....They also lack what most consider a "shame" mechanism. Quite simply, most serial killers and many professional politicians must mimic what they believe, are appropriate responses to situations they face such as sadness, empathy, sympathy, and other human responses to outside stimuli.
(cont) "
wtf wrote on Jun 15, 2009 8:19 AM:
The following commentary includes material obtained by the National Association of Chiefs of Police from the Federal Bureau of Investigation's Behavioral Analysis Unit.
Although the concept of psychopathy has been known for centuries, the FBI leads the world in the research effort to develop a series of assessment tools, to evaluate the personality traits and behaviors attributable to psychopaths...
(cont) "
reality wrote on Jun 15, 2009 8:17 AM:
mark wrote on Jun 15, 2009 12:14 AM:
You think you’d check these things out before writing an article like this for all to see. Guess it wasn’t that important to be that accurate.
And what’s the problem with AB155 Bob? I, personally hope that it does pass. Private citizens have judicial oversight when they opt to file bankruptcy, and I think a municipality should too. More in fact because of how many people it affects. Are you afraid of a little oversight?
To be honest, I don’t know why you’re even writing about this bill. Is Lodi considering bankruptcy? And why are you comparing Lodi to another city (Vallejo) again that doesn’t really reflect this one? Vallejo is a dump and they made a mess of a lot of things when they filed for bankruptcy. Why don’t you worry about Lodi first. "
mark wrote on Jun 15, 2009 12:00 AM:
First of all, I don't know why Bob spends so much time comparing Lodi to Sacramento County, but since he did, rest assured that Sacramento County's employee pension fund is doing just fine as it is funded by multiple sources - the employer, THE EMPLOYEE, and the investment earnings of the retirement system.
Bob also mentions "that a deputy sheriff can retire as young as age 50, and if he has worked 33.3 years he takes home 100 percent of salary as a retirement benefit." I don't know what else to say about this other than it's just flat out wrong. Hopefully, Bob didn’t intentionally lie in his article and instead he’s just REALLY bad at math and/or grossly misinformed.
I’m trying to give him the benefit of the doubt. But if you have to be at least 21 years old to be hired as a cop, how can you work 33.3 years by the time you’re 50? The math just doesn’t add up Bob. "
Cogito wrote on Jun 14, 2009 10:16 PM:
OTH wrote on Jun 14, 2009 8:56 PM:
I agree with what you say. If 2 people are working someone has to subsidize child care and that falls on the city, which is us. "
dogs4you wrote on Jun 14, 2009 8:33 PM:
OTH wrote on Jun 14, 2009 7:35 PM:
You go girl. "
OTH wrote on Jun 14, 2009 7:35 PM:
Why do you think people are retiring at 50? Because cities like Lodi gave them the benefits to do just that. iF DEAR Bob wants to bitch about the unions in Lodi he can start with the firefighters and the police men. Your Mayor is a prime example. These unions are going to break Lodi. It's only a matter of time.
Could you live on $8 dollars an hour in todays economy? "
sam wrote on Jun 14, 2009 3:28 PM:
Google Charles Keenan and Half Moon Bay. Chop is a dear friend of mine. The party is just beginning. "
illegalinLodi wrote on Jun 13, 2009 11:45 AM:
illegalinLodi wrote on Jun 13, 2009 11:43 AM:
ok wrote on Jun 12, 2009 8:06 PM:
tosh conn wrote on Jun 12, 2009 10:29 AM:
Cogito wrote on Jun 12, 2009 7:56 AM:
sam wrote on Jun 12, 2009 7:31 AM:
The Stockton Record reports that Citizens For Open Government have filed suit against the Lodi Walmart. "
Cogito wrote on Jun 11, 2009 7:15 PM:
illegalinLodi wrote on Jun 11, 2009 3:54 PM:
wtf wrote on Jun 11, 2009 3:22 PM:
http://www.teslamotors.com/ "
Cogito wrote on Jun 11, 2009 1:41 PM:
illegalinLodi wrote on Jun 11, 2009 10:13 AM:
Cogito wrote on Jun 11, 2009 8:52 AM:
wtf wrote on Jun 11, 2009 8:42 AM:
Bob, I'll give to you credit for an excellent article; however, regarding yourself and our livable, lovable CC, only three words:
Pot. Kettle. Black. "
16925 wrote on Jun 11, 2009 8:02 AM:
And you ask what is wrong with state. "
Bulldog wrote on Jun 11, 2009 7:38 AM:
El Rushbo wrote on Jun 11, 2009 7:22 AM:
Comments on this story are now closed.