California's Budget Mess Threatens County Services And Fuels Attacks On Public Employee Pensions

Last month, Los Angeles County CEO, William T. Fujioka, announced a $23.3 billion proposed budget for FY 2011-2012 that is balanced, preserves critical services, and avoids work furloughs and layoffs for County employees. However, the County's budget situation remains unsettled as the ongoing budget debates at both the State and Federal level threaten to impact funding for critical County programs and services.

So far, Governor Jerry Brown and State Legislative leaders have addressed approximately $11.2 billion of the originally estimated $26.6 billion State Budget deficit, all through spending cuts.

The Governor's plan since January to let Californians vote on maintaining existing revenues for five years instead of making deeper cuts continues to be blocked by Republican legislators. The Republicans are demanding broad-brush pension cuts, and unrelated safety and environmental reforms, before they will allow such a measure on the ballot.

Proposals in Sacramento to reform public employee pensions could be aimed at all 1937 Act pension systems, including LACERA. Both LACERA and Los Angeles County have weathered the economic downturn relatively well, mostly because of conservative budgeting that prevented 3% @ age 50 retirements.

On April 28th, a delegation of CAPE representatives met with the Governor's Labor Secretary and several State Assembly members in Sacramento with the following message:

"Any demands for reform should be financially necessary, not politically driven. There is no problem with LACERA. No matter what happens with other pension systems, don't fix what is not broken."

The Constitutional deadline for the State to pass a balanced budget is less than a month away. With politicians seemingly at an impasse, the Governor's May Budget Revise, scheduled for release as soon as Friday, May 13th, is expected to include alternatives to address the State's remaining multi-billion dollar budget deficit.

An "all cuts" State Budget could have devastating consequences for Los Angeles County services. Maintaining existing revenues must be part of the solution. You can help! Please Call Your Legislators Today and tell them to let Californians vote to maintain existing revenues to help balance the State Budget shortfall.CAPE

Representatives Discuss Pension Issues with Warren Furutani

CAPE Board Director Barbara Volz (L) and CAPE Counsel Blaine Meek (R)
discuss public employee pensions with CA State Assemblyman Warren Furutani (C).]

There are only a handful of people in the State of California who can directly impact public employee pension policies. Fortunately for CAPE members, one of those individuals is California State Assemblyman Warren Furutani, Public Employee and Retirement Committee Chair. CAPE representatives met with Mr. Furutani recently to discuss the broad range of misinformation circulating in the media about public employee pensions.

In the meeting, Mr. Furutani explained his assessment that "the sky is falling" claims from the so-called pension reform advocates stem from an underlying partisan agenda aimed at reducing or eliminating collective bargaining rights for public employees. Mr. Furutani, himself a public employee retiree, encouraged CAPE leaders to continue their engagement in the current public debate, both at the State and local levels.

ANNOUNCEMENTS

CAPE Tables at Worksites - The CAPE Board of Directors has established recurring lunch-time CAPE Tables at both the Hall of Administration and the Department of Public Works' Headquarters. The CAPE Tables provide great opportunities to meet CAPE staff, talk with other Cape-represented employees, and get the latest information about CAPE efforts and events. There is also a movie ticket raffle for CAPE-represented employees at every CAPE Table. We hope to see you there!

Hall of Administration 2nd Floor Lobby
2nd and 4th Wednesday each month 10:30 a.m. to 1:00 p.m.

DPW Headquarters Courtyard
1st Tuesday each month 11:30 a.m. to 12:30 p.m.

CAPE Board of Directors Meeting - The next meeting of the CAPE Board of Directors will occur Thursday, May 12, 2011, starting at 2pm at the CAPE office. Members are welcome to attend and may address the Board on any subject during the "Open for Members" section of the agenda.