Statewide Report Reinforces San Diego Pension Reform

Carl DeMaio Carl DeMaio Leave a Comment

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The Little Hoover Commission just released a bipartisan report on public employee pensions. The data is sobering to say the least.
 
·         The 10 largest public pension plans in California faced a combined shortfall of more than $240 Billion in 2010.
 
·         Major cities in California including San Diego are or will be spending 1/3 of their operating budgets on retirement costs.
 
·         Pension costs will crush  governments at the local level: Few municipalities will be able to absorb the financial blows without making further severe cuts to vital local services.
 
When it comes to solutions, the report suggests capping pensionable pay, which happens to be a major component of my Roadmap to Recovery. I’m happy to see this common sense solution gaining traction beyond San Diego.
 
As other local governments and the state continue into the fiscal abyss, they will be forced to make the same tough decisions San Diego faces… Do we cut basic functions of government like road maintenance? Or, do we finally demand that public employee benefits fall in line with those of the private and non-profit sectors?
 
The full report is worth a read: http://www.lhc.ca.gov/studies/204/report204.html

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