California’s public pension crisis and CFFR’s ballot initiative were included in a news story in yesterday’s Sacramento Bee titled “Schwarzenegger sets the bar high for his last year in office” by reporter Kevin Yamamura. Here’s the relevant excerpt:

In various forms, the governor has sought changes to the state’s pension system but hasn’t persuaded lawmakers or voters to approve them. California is projected to have unfunded pension liabilities of more than $100 billion through 2014-15, according to the Legislative Analyst’s Office. Schwarzenegger economic aide David Crane said in December that the state needs to reduce retirement benefits for new workers and contribute more toward pension investments.

The governor met recently with backers of a proposed 2010 initiative that would lower benefits for state and local government employees who begin jobs in July 2011 or later. Schwarzenegger has not pledged support yet but is considering the idea, said Marcia Fritz, a Citrus Heights accountant who heads the California Foundation for Fiscal Responsibility, which is sponsoring the initiative.

“The people of California clearly know we have to get a handle on our labor costs in the public sector,” Fritz said. “It would be a wonderful thing for him to leave office setting the tide the other way.”

Unions warn that if the governor pursues a pension overhaul, he could face a repeat of 2005, when Schwarzenegger spent the year fighting with Democrats and labor. While Fritz said her plan still would offer pension plans better than those available in the private sector, Dave Low, chair of the union-backed Californians for Health Care and Retirement Security, said the change would cut benefits in half and make it difficult for state workers to retire.

“If he decides to go the ballot route, he will basically be declaring nuclear warfare,” Low said. “Every public employee association will put everything they have in defeating it.”

You can read the entire Sacramento Bee article here.