New pension proposal by the Mayor
Mayor Jerry Sanders is going back to the voters, not with another tax increase, but with a plan to reform the pension system. The current pension system will go away for new hires, they, including elected officials, will only have a 401k style plan.
So now we have two plans, the Mayor's plan and Council Member Carl DeMaio's “Road to Recovery” plan. Will the voters have two choices? Will competing signature drives assure one, and not the other? Or will the two plans merge? One thing is clear, the voters have had their say, and they want pension reform.
“The notion that all public employees should have a richer retirement benefit than the taxpayers they serve, while also enjoying comparable pay and greater job security is thoroughly outdated,” said Mayor Sanders.
The Mayor has partnered with Councilmember Kevin Faulconer to collect signatures and build community support. Faulconer said, voters sent a clear message this November. They want the council to devote more resources to parks, libraries, and other core services and less on payroll and benefits.
All new hires, including elected officials will be in a 401k type pension plan, but it will not apply to public safety members, many of whom are drawing these lavish pensions.
The Mayor's plan is essentially speeding up the 10-reforms in Prop D with additional revenue sources from further streamlining government and outsourcing, but meaningful savings are not realized until 2013 and it will not prevent cuts and layoffs in next year's budget.
Councilmember DeMaio says he may incorporate some of the Mayor's ideas into his ballot measure and is open to working with the Mayor if he wants to work on a joint ballot measure. DeMaio said he will be announcing some of those ideas on Monday.
Conversely, the Mayor says he will take some of DeMaio's ideas and fold them into his plan. So, where this goes is anybody's guess.
These two men competed over the tax issue with DeMaio coming out on top. Will the Mayor join his adversary, or do we go to round two?
These ballot measures could go to the voters as soon as next year if the state has a special election. Otherwise, they'll have to wait for the Presidential primary in June of 2012, or the November election.