The woes of public pensions seems a universal problem. Governments around the globe grapple with these unsustainable money pits in the hopes of avoiding more trouble down the road.
San Diego’s not unique.
But just a year out from the 2012 June primary, we’re seeing lots of hubbub about the pension reform ballot measure out trying to beat the clock on submitting enough valid signatures to get it before San Diego voters for consideration.
Tied into this issue: the mayor’s race. Councilman Carl DeMaio’s planted himself firmly in the center of this issue along with his drum-beating partners, Mayor Jerry Sanders and Councilman Kevin Faulconer, who support his opponent, fellow Republican District Attorney Bonnie Dumanis.
In an even stranger turn, she does not support the pension reform.
Ah, don’t you just love politics?
On the outs of the issue, until just mere hours ago, the third Republican mayor candidate Assemblyman Nathan Fletcher. He officially tossed his support behind the comprehensive pension reform.
What’s we’ve seen in this already heated political cycle is that Fletcher and DeMaio can raise some coin. In just 25 days, Fletcher said he raised more than $300,000 last month to DeMaio’s claimed $270,000, which he matched dollar-for-dollar for a total of $540,000.
So far, the Dumanis camp is silent.
The Fletcher support of the pension reform is a noteworthy move. Unlike DeMaio or Dumanis, he’s not been dealing with downtown city politics as long or to the same degree. In a fairly organic progression, he erred on the side of caution, took his time to learn up on the issue and made a thoughtful announcement.
Dumanis does not like the proposal, which would require all new city employees except police officers to switch to a 401(k) system. She has not laid out what her plan would be.
The proposal also includes a five-year salary freeze for current workers, death and disability benefits for employees and a cap on future police pensions, among other things.
Though there’s been squabbling between proponents and opponents of the savings, the most regularly used estimates put the cost savings to taxpayers between $1.2 billion and $2.1 billion over the next three decades.
This sort of change isn’t unexpected. The Department of Defense is weighing options of switching the military over to a 401(k) system among other major budgeting changes to deal with its own shrinking budget.
Fletcher’s defined himself a bit more as a candidate with this decision. We’re getting more of a sense of who he would be as mayor. Beyond the Marine, the family man, the staffer-turned-politician, he’s flexing some executive leadership chops.
We’ll likely need to see more than his co-signing of other people’s efforts. But it’s certainly a solid conservative step in the right direction in the wake of being the lone Republican to vote for a controversial bill that would add the historical contributions of lesbian, gay, bisexual and transgender Americans to public school textbooks in California.
It will be interesting to see how key a role comprehensive pension reform plays in polling for these races. Though, with the debt problems plaguing governments worldwide, it’s probably safe to be seen as a fiscally-responsible candidate.
– Follow me @erica_holloway.
Comments 9
Erica,
Good post. I would like, however to correct one line:
“The proposal also includes a five-year salary freeze for current workers…”
The proposal does not (because it can’t legally) prohibit the City Council from giving raises. What it does do is mandate that the City’s opening position at the bargaining table is one of a pay freeze. This doesn’t mean that the final agreement can’t include raises. However, if the public passes the initiative by a wide margin, it would be politically very difficult for a Council Member to vote to raise wages.
Author
Hi Alger:
Thank you. I appreciate the explanation, though I can understand why I’ve seen it reported as such in various news stories.
That’s a pretty tricky concept to explain to the general public without confusing the issue. But it seems in general, proponents hope to slow down the pay increase schedule to make a dent in the damage.
It’ll be interesting to see how that issue plays out with messaging.
Thanks, Erica
Great analysis as usual.
“I appreciate the explanation, though I can understand why I’ve seen it reported as such in various news stories.”
There you go again, Erica, believing what you read in the news . . . 😉
Author
Hi Steve:
Thank you. Very kind.
Best,
Erica
Author
Hi Brad:
Did I say “believe?” I did not say “believe.”
Best,
Erica
Not sure where else to post so putting my comment here…sorry if it’s in wrong place.
I’m watching “Nightmare in the City That Never Sleeps” on CNBC. A show about New York City’s financial woes in the mid-70’s, and how the city worked its way out of the mess.
Many parallels to situations we are facing today — bloated city workforce, untenable pension obligations, bonding and borrowing, threats of implosion unless bailouts happen, unions & strikes, mayoral candidates and their thought on unions, municipal bankruptcy, etc. Even comments from some guy named Rupert Murdoch (no shaving cream pies on this show).
It’s on again 7-24-11 at 6pm and 7-26-11 at 5pm. Definitely worth watching.
Erica’s post ran on yesterday’s FlashReport…
http://www.flashreport.org/blog/2011/07/20/the-strange-bedfellows-of-pension-reform/
Author
Dear D7 Voter:
Thanks for the tip. Sounds like must-watch TV for some folks with their fingers on the button.
That pie in the kisser was a long time coming for Murdoch. Hope it’s not the last.
Best,
Erica