California Pension Reform applauds Gov. Brown’s challenge to the Legislature

SACRAMENTO — Dan Pellissier, president of California Pension Reform (CPR), today responded to Governor Jerry Brown’s challenge to the Legislature to take action on pension reform:

“We applaud Governor Brown for continuing to challenge the Legislature to act on pension reform. As the Governor has said, the current system is a ‘Ponzi scheme’ and ‘the arithmetic doesn’t add up.’ Unfortunately, no one is holding their breath for the Legislature to do anything meaningful on pensions, particularly in light of Democrats and union bosses already rejecting the Governor’s proposal out of hand. That’s exactly why our pension reform initiative is so critical. In the absence of Legislative leadership we will give Californians the opportunity to fix our broken pension system once and for all.”

In his State of the State speech today, the Governor addressed the state’s pension crisis:

“As for pensions, I have put forth my 12 point proposal. Examine it. Improve it. But please take up the issue and do something real. I am committed to pension reform because I believe there is a real problem. Three times as many people are retiring as are entering the workforce. That arithmetic doesn’t add up. In addition, benefits, contributions and the age of retirement all have to balance. I don’t believe they do today. So we have to take action. And we should do it this year.”

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6 Responses to California Pension Reform applauds Gov. Brown’s challenge to the Legislature

  1. denise says:

    Pension Reform is Mandatory. There are many good solutions. Govt. workers should not receive entitlements. It’s bankrupting us.

  2. Joseph Wegand says:

    There is a huge misconception out there and I, as a public employee, am tired of being bad-mouthed by ill-informed people.

    All my school friends used to brag about how much they made working in the private sector. They had fine cars, big trucks, fancy toys, nice homes, and more money to play with. I made a different decision and chose instead, to live on less money in exchange for ensuring my family had health insurance and a decent retirement to look forward to. Over the years employees at my agency and many others like it, gave up pay raises in in exchange for health insurance and retirement benefits and you want to take them away? No that’s not fair!!!

    Now that the economy is bad and people that were into fast money have lost their toys, the focus is shifted. They now want public employees to share the pain of their bad choices. We are not the target! Poor government is!!!

    I suggest you focus on fixing the things that are really broken in California. Here are just a few Governor Brown: reduce burdensome laws and over regulation so less public employees are needed; reduce the number of special committees and regulatory agencies that create multiple layers of complexity and add to the cost of government; get tough on illegal immigration like Arizona and end free benefits for those who should not be here; cease being the welfare state and get tough on long term recipients; stop bailing out irresponsible people (bad mortgages etc.) with money we paid in taxes; and finally, get people back to work by making it pay for corporations to call California home.

    Instead of expecting public employees to provide valuable services for unfair wages and benefits, shift your focus back to where it needs to be, broken government. If the politicians can’t get the jobs done, we need to vote them out of office and get new people in that can!!!

    Proud to be a public employee,
    Joseph Wegand

  3. If Gov. Brown can re-invent the pension issue I believe we might have a chance bring about a realistic budget

    If we can’t change the pension issue the State as we know it might last another 8 years, then sh.. Hits the fan

    A pox on both parties (Dems & reps) who are truly responsible for the state we find our State in.

    I as an Independant will go with Brown subject to the Pension Issue

    Philip Treanor

  4. vford says:

    From what I gather, the current situation regarding state/government pensions and retiree benefits is not sustainable unless literally all of the states income goes to support these items. This means that eventually ALL of the state’s income will go to support only pensions and retiree benefits. There will be nothing left for other state responsibilities. This means that every penny of each taxpayers taxes will go only to support these pensions and retiree benefits. Again, this is not sustainable.

    If taxes are increased in an attempt to cover all of these unfunded mandates this will create an even more unfriendly environment for business. New businesses and existing businesses will locate and re-locate to states with more friendly business environments (lower taxes and less regulations).

    Regarding property taxes. There is talk of repealing Proposition 13 so that property taxes can be increased to coveer state expenses. If Proposition 13 (limits on property tax increases) is somehow repealed this will eventually result in the same situation that caused Proposition 13 to come into being in the first place. Property taxes for EVERYONE will increase to the breaking point causing business and individuals to simply sell (or abandon), pack up and leave California. This is exactly what was happening back in the 1970′s when Prop 13 was created. Retired individuals had to leave their home state of California and relocate to more friendlier states.

    The fact that neighbors in identical homes have different tax liabilities is exactly what Prop 13 was meant to do. It holds down annual property tax increases and allows a max of 2% increase per year. This is for EVERYONE. Thus, a new homeowner will likely have a higher tax bill than someone who has owned their home for many years, but that new homeowner will be able to count on his/her property taxes only increasing at a rate of 2% per year (of course there are those nasty fees that seem to creep in to the tax bill). That new homeowner will see his/her tax bill staying somewhat constant over the years (+25 annual increases), except for those fees and bond issues. This means that EVERYONE benefits from Prop 13 tax savings, not just the existing home owners.

  5. Richard Rider says:

    In his State of the State speech, Governor Brown makes a one-paragraph call for the legislature to reform public employee pensions. Wink-wink.

    He KNOWS it ain’t gonna happen through legislation. It took only a couple hours for the Democrats’ bosses (the unions) and their sycophants (Democrat legislators) to make clear that no such pension reforms will be considered, let alone passed.

    Governor Brown KNEW this when he made the speech. The ONLY way we will get pension reform in CA is through the INITIATIVE process. He COULD have called for such a proposition, but he didn’t — hence he is NOT serious about pension reform.

    What a shocking revelation!

  6. russell buckley says:

    Absolutely no tax increase unless meaningful pension reform is first passed. If taxes are increased and the financial pressure is off we are sure not to get anything done with the obscene government pensions throughout the state.