pensions

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Governor’s Possible State Budget Deal with GOP Reported to be “Dead”

Byuclafaculty

From “Jerry Brown declares budget talks dead,” Capitol Alert, 3/29/11 Brown did not specify what he would do next… Brown is considering alternative ways to put tax extensions on the ballot, either by a majority in the Legislature or by a ballot initiative. He suggested in his release that he may be skeptical of the majority-vote approach, saying the Constitution requires a two-thirds majority. Full article at http://blogs.sacbee.com/capitolalertlatest/2011/03/brown-budget-talks-with-republ.html#ixzz1I2KX8500 If the talks are truly dead, the issue of the November ballot initiatives (see earlier blog posts) arises. One, as noted in prior posts, would impose a 60% cap on public pensions,…

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UCOP & Regents Out of the Loop on Public Pensions: Here is a way to get into the loop

Byuclafaculty

As has been noted on previous blog posts, UC is in danger of letting the pension issue get away from it. The governor has – according to news reports – agreed to a $106,000 cap on public pensions. Legislative Republicans have filed an initiative putting a cap of 60% of final pay on pensions. Both caps clearly apply to new hires and clearly do not apply to those already retired. There is uncertainty about what would be applicable to current employees. The initiative – which is poorly drafted – explicitly covers UC. We don’t know about the possible $106,000 cap…

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PART II: UCOP & Regents: Don’t Say You Weren’t Warned

Byuclafaculty

Someone asked yours truly yesterday whether the GOP pension initiative actually covered existing employees as well as new hires. Apparently, there was a report that the Republican legislator in whose name the initiative was submitted had denied it. The article below – as well as the language of the initiative – makes it clear that existing employees are to be included. The article also notes that Gov. Brown is willing to accept a pension cap of $106,000. That is different from the initiative which has a 60% final pay cap. But it is unacceptable for UC faculty and would override…

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UCOP & Regents: Don’t Say Later You Weren’t Warned

Byuclafaculty

Two initiative petitions were submitted earlier today. One, reproduced below, deals with pensions. It would explicitly cover UC and, thus, would override the pension changes enacted by the Regents last December. For example, it limits the final pension to 60% of final salary. It covers existing employees as well as new hires. The second is essentially a revival of the old GANN initiative that was passed by voters shortly after Prop 13. The GANN limit restricted the rise in state spending (general fund plus other funds) to the inflation rate plus the growth in population. GANN was essentially gutted in…

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Poll Results on Pensions and Budgets: Let’s Be Cautious in Interpreting the Results

Byuclafaculty

The Public Policy Institute of California (PPIC) takes a respected monthly poll on public attitudes in the state on political and policy issues. The March release is just out. Taken at face value, the public is very concerned about the state budget situation (Figure 2 – scroll down below), there is slippage in support for a special election advocated by Gov. Brown on tax extensions (although a bare majority still support the plan – Figure 3), cutting public pensions is seen as a good way to balance the budget (Figure 4), and the way to reform public pensions is to…

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Audio of Regents Meeting of 3-17-11

Byuclafaculty

At the Regents meeting of 3-17-11, the session started with open comments. (A student from a class co-taught by yours truly in winter quarter was a speaker.) There was then a presentation by the UC-Davis chancellor, Linda Katehi, about developments on that campus, including budget concerns. The Finance Committee approved options for borrowing for the pension fund from STIP and possible pension bonds. Oddly, but consistent with earlier presentations, the primary motivation is described as a kind of interest arbitrage. In fact, the original motivation for these options was the $2 for $1 issue; roughly each $1 of contributions by…

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48% of Voters Think Public Pensions Are About Right or Not Generous Enough

Byuclafaculty

Just a straw in the wind from the latest California Field Poll. Note that the headline on the poll press release (see URL below) is “MORE CALIFORNIA VOTERS NOW VIEW PUBLIC PENSION BENEFITS AS TOO GENEROUS.” What the headline refers to is the change since October 2009 in the response to the “Too Generous” option. Yours truly is more impressed with the fact – reflected in the headline on this blog post – that after the Bell City scandal and all of the agitation about public pensions – voter opinion still tilts toward “About Right” and “Not Generous Enough.” It…

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Please Don’t Mention Their Pension

Byuclafaculty

Pension reform is lucrative for former Capitol insiders (excerpts) Capitol Weekly, 3/17/11, Malcolm Maclachlan The consulting company hired by Republican lawmakers known as the “GOP 5” to do research on reforming public employee pensions signed a similar but much larger contract with a conservative pension reform group last month. The company, Capitol Matrix Consulting, is headed by Mike Genest, who served as finance director for former Gov. Arnold Schwarzenegger. Matrix’s other two principals, Brad Williams and Pete Schaafsma, also are well-known in the Capitol as top-level financial analysts. All three men, incidentally, have state pensions worth more than $100,000 a…

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Pension train may roll through UC’s pension changes. Does anyone at UCOP even know where that train is?

Byuclafaculty

As noted in earlier posts, the pension train is rolling in Sacramento and could easily override the changes in UCRP made by the Regents last December. Is anyone from UCOP articulating a UC position? The kind of caps being discussed are too low for UC faculty. See below for the latest: Pension focus shifts: hybrid, caps and the big one (excerpt) Ed Mendel, calpensions.com As Gov. Brown seeks crucial budget votes, one reform proposed by five Republican senators would switch new hires to “hybrid” pensions, a cost-cutting combination of lower pensions and 401(k)-style individual investment plans. The governor, who also…

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Will the State Budget Deal Cut the Heart Out of UC’s Recent Pension Changes? Are We Too Chicken to Make a Case With the Governor?

Byuclafaculty

Perhaps you know of the old radio show in which a chicken heart grew until it took over everything and covered the world. As previous posts on this blog have noted, although the true deadline for getting the governor’s proposed tax extensions on the June ballot is somewhat flexible, we are coming close to the point where it becomes administratively impossible. The governor and the Democrats have evidently concluded that proposed strategies for doing the deal without a 2/3 vote for the ballot measure are impractical. So bargaining is going on with a few Republicans on the price for their…