Monday, June 7, 2010

Taxpayers Going Postal Over Public Employee Pensions, Perks


BY PETER SCHEER—For public employee unions–those representing police, firefighters, teachers, prison guards and agency workers of all kinds at the state and local level–these are the worst of times.

Despite record high membership and dues, and years of unparalleled clout in state capitols, public sector unions find themselves on the defensive, desperately trying to hold on to past gains in the face of a skeptical press and angry voters. So far has the zeitgeist shifted against them that, on one recent weekend, government employees were the butt of a Saturday Night Live skit, followed, the next day, by a New York Times magazine cover article proclaiming the “Teachers’ Unions’ Last Stand.”

Public unions’ traditional strength–the ability to finance their members’ rising pay and benefits through tax increases–has become a liability. Although private sector unions always have had to worry that consumers will resist rising prices for their goods, public sector unions have benefited from the fact that taxpayers can’t choose–they are, in effect, “captive consumers.”

At some point, however, voters turn resentful as they sense that: (1) they are underwriting, through their taxes, a level of salary and benefits for government employment that is better than what they and their families have; and (2) government services, from schools to the DMV, are not good enough—not for the citizen individually nor the public generally—to justify the high and escalating cost.

We are at that point.

In California, government sector unions, once among the most entrenched and powerful labor groups in the country, mainly have themselves to blame. For most of the post-war period, they were a force for progressive change, prospering by winning over public support for their agenda.

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Posted by "Comrade" Steve Sinai

5 comments:

Kathy Meeh said...

Here's one part of that solution, cut "pension spiking" which has given state police, fire and safety employees the average of their highest 3 years earnings. Other state worker formulas also need review. By contrast, the federal social security pension formula is based upon the entire tax paying work career of an individual. Bill to stop pension spiking passed 6-1-10 .

The State Senator who introduced this bill, Joe Simitian is from the 11th District representing San Mateo, Santa Clara and Santa Cruz counties. After reading the legislation article, you may want to look at the State Senator Joe Simitian website , including his background. No mention in his biographical postings that I noticed, but he is a Democrat.

Of course, "pension spiking" (an incentive to cheat) should never have been a State government practice in the first place. And, municipal governments should have introduced the modern 403-b plans when these 401-K and 403-B self-funded pension plans (to supplement employee pension planning) began 30 years ago (1980).

In the aftermath of political polarization comment posts, Steve posted this article as "Comrade"-- well, comment to that: previously did any State Republican Legislator introduce this legislation, and was it defeated? Or, were representatives of all political parties working the system without prudent financial vision?

Anonymous said...

Kathy seems like you predicted this problem before anyone else, is any of our current financial problem from pension spiking?

Anonymous said...

I like this part of your article.

voters turn resentful as they sense that: (1) they are underwriting, through their taxes, a level of salary and benefits for government employment that is better than what they and their families have; and (2) government services, from schools to the DMV, are not good enough—not for the citizen individually nor the public generally—to justify the high and escalating cost.

Is there somewhere we can see the salaries of Pacifica workers?
its not on the city website anywhere obvious.

Anonymous said...

I thought this was going to be about the Manor post office.

Good job though Kathy seven years ago and you already knew we were cruising for a bruising

Anonymous said...

Kathy and Steve for the win almost ten years ago

Are spiking police, firefighter and teacher pensions the reason we're having all this trouble now?