By Mike Genest | The Sacramento Bee — During my four years as director of the state Department of Finance I signed off on the Legislative Analyst’s Office analyses of hundreds of initiative proposals – and I almost always agreed with their conclusions. I have the highest regard for the LAO, where my career in state government began. So, I was surprised and disappointed with its analysis of the two pension reform measures filed by California Pension Reform.
The LAO says, essentially, that both measures will create both costs and savings. While the potential to create billions of dollars of savings for taxpayers in California is obvious – and acknowledged by the LAO – it may be less obvious how such aggressive pension reform plans could create additional costs. The LAO suggests that costs would arise for two reasons, both of which are theoretically correct but, in my opinion, misleading. Read the entire op-ed . . .