State Budget Pushes Deficits to Next Year and Pension Reform Advocates to the Ballot

State legislative leaders adopted a FY 2011-12 State Budget in June that is already out of balance by billions of dollars. The spending plan was passed by the Legislature and signed by the Governor on time, but the measure anticipated $4 billion in new sales, property and income tax revenues. Unfortunately, that money has so far failed to materialize.

The large and growing gap between “real” and “optimistic” revenues is a surprise to no one. Legislative leaders and the Governor’s budget staff anticipated the scenario and have accounted for the difference by mandating large drastic cuts in state spending if the revenue projections fall short. If those cuts are triggered, state programs supporting education, corrections and other vitally important services will receive the majority of the mid-year spending reductions. How the additional cuts, if triggered, may impact Los Angeles County is not yet known. 

The only good news for CAPE members coming out of the seemingly endless state budget debates this year is that the misguided attempts to include public employee pension reform as part of the overall budget deal were ultimately rejected. That means legislatively driven pension changes have been averted, for now, but the so-called pension reformers are not going away quietly.

Pension Reform Ballot Measures Pending: More than 30 ballot measures have been submitted to the Secretary of State for consideration by California’s voters. Fortunately, none relating to pension reform or collective bargaining have qualified for a statewide election ballot, yet. There are, however, several proposed ballot measures currently in circulation which relate directly to pension reform or collective bargaining. 

None of the proposed measures are aimed at providing reasonable pension reform alternatives or enhancing our rights as public employees. All of them are following the path of Wisconsin’s wrong-headed agenda to reduce the accountability of top government executives as part of a broader attempt to return to a system of government-by-patronage, enriching those at the top, and decimating public service.

One particularly harmful measure that cleared for circulation in early September would completely eliminate collective bargaining for all state and local public employees. Other measures aim to increase retirement ages, increase taxes on public employee pension income, or create a new hybrid retirement system for public employees that would combine a 401-K style plan with traditional pensions but offer a significantly reduced benefit.

Another proposed measure which stands out as uniquely irresponsible is the so-called “payroll protection act”. This is actually a measure that would prevent labor organizations — and only labor organizations — from participating in the political process. Professional organizations, chambers of commerce and large corporations would still be able to assemble campaign contributions from their respective constituencies, but not labor unions.

The attacks on our bargaining rights and hard-earned retirement security are likely to continue through the 2012 Primary and General Election cycles. We’re asking all CAPE members to do two things: 1) If you encounter signature gathering efforts for any of the proposed measures, DON’T SIGN THE PETITION, and 2) Sign up as a CAPE FAIR PAC contributor today!