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How did we get here and where do we go next? Judy Lin Economy Reporter
Howdidwegethereandwheredowegonext?
JudyLinEconomyReporter
SB400:Thedealthatwasn’tsupposedtocosttaxpayersadime
TheaverageCaliforniaHighwayPatrolsalarywas$111,732in2015.
TheaverageCaliforniaHighwayPatrolretiredwith$95,282in2015.
Employeeschipin11.5%oftheirsalary.Thestatechipsin55%.
JonHamm,retiredchiefexecutiveoftheCaliforniaAssn.ofHighwayPatrolmen
“IfIwasintheprivatesectorjuststrugglingtogetby,hadnodreamofretiring,wouldIbeupset?”Hammsaid.“Yeah.Andwehavetounderstandthat’sareality.”
Didn’tJerryBrownfixthis?
PassedHigherretirementagefornewemployees
Pensionsbasedonhighestthreeyears,notone
Calculatesbenefitbasedonnormalpay,notinflatedbyunusedvacationtime,bonusesandovertime
FailedAhybridretirementsystemcombiningsmallerpensionswith401(k)-styleplansInstead,Democraticlawmakersproposedacaponthesalaryusedtocalculateanemployee’spension.
IncreaseCalPERSboardindependence
Nearly 40percentoftheincreaseinschoolbudgetswillbeabsorbedbyhigherpensioncosts
LegislativeAnalyst’sOffice
RetirementdebtofallpublicworkersinCaliforniatops$400billion
What’snext?
Howmuchflexibilitydostateandlocalgovernmentshavetocutbenefitsofcurrentworkers?
AgroupofMarinCountyemployeeshadarguedthatBrown’s2012pension changesinfringedontheiremployer’scontractualobligationtoprovideretirementbenefitsatthelevelthatwaspromisedontheirfirstdayofwork.Thatpremise,knownasthe“Californiarule,”hasleftstateandlocalgovernmentswithlittleroomtomodifyretirementbenefitsexceptfornewhires.
PublicemployeesinAlameda,ContraCostaandMercedcountieswonwhenanappealscourtsaidbenefitadjustmentsrequire“compellingevidence”showingthatthechangesarenecessarytothesuccessofthepensionsystem.
ThestateSupremeCourthasagreedtotakeuptheissueofthe“Californiarule,”whichcouldhavehugefinancial
implicationsforcities,counties,schooldistrictsandthestate.
“Thatfightisunderway,andthere'snotmuchthatthenextgovernorcando...evenwiththeCaliforniarule,wehavethetoolsthroughcollectivebargainingtonegotiatereformsandcommensurateoffsets.”
GavinNewsom
