How Democrats enable California’s pension slashing

New "bipartisan" initiative allows state and local governments to reduce retirement benefits for current employees

Topics: Frying Pan News, bipartisan, right wing, California, chuck reed, save our cities, manhattan institute, , ,

How Democrats enable California's pension slashing
This article originally appeared on The Frying Pan.

Last week San Jose Mayor Chuck Reed delivered his usual speech about the benefits of slashing the retirement benefits of his city’s public employees – and why he is now pushing for a statewide ballot measure that could dramatically change the lives of hundreds of thousands of Californians. Reed’s initiative – which he characterizes as a bipartisan effort and which hasn’t yet qualified for the 2014 ballot — would allow the state and local governments to reduce retirement benefits for current employees for the years of work they perform after the measure’s changes go into effect. What was not usual about Reed’s speech was its setting: The Roosevelt Hotel in New York City, 3,000 miles from California.

Reed was a keynote speaker at a “Save Our Cities” conference sponsored by the Manhattan Institute, a conservative think tank co-founded by Ronald Reagan’s CIA director, William Casey. There was another California presence at the gathering: The video-streamed image and voice of former Los Angeles mayor Richard Riordan who, like the ghost of Hamlet’s father, seemed to demand revenge – in this case, for theignominious implosion of his own $800,000 effort in 2012 for an L.A. ballot measure that would have forced city employees into 401(k) plans.

New York wasn’t Reed’s only port of call last week. The following day he spoke again — on a panel at the Mandarin Oriental Hotel in Washington, D.C. There he discussed firefighter and police pensions as part of a conference on state and local retirement systems sponsored by the Pew Charitable Trusts, the Urban Institute and the Laura and John Arnold Foundation.

Reed was invited to both events, says Michelle McGurk, Reed’s spokesperson. She says the Manhattan Institute and Pew Charitable Trusts each paid for one flight, and the city of San Jose also paid some costs, based on the amount of city work Reed did while on the East Coast.

You Might Also Like

“It was a mixture of him being invited to speak and city business,” McGurk says.

Reed’s message at both venues was the same: Cutting pensions of public employees is needed to stave off cuts in public services and even possible bankruptcy. That, and the fact that his initiative is part of a bipartisan or even largely Democratic-led effort.

This last statement has raised eyebrows.

“Mayor Reed’s East Coast junket shows exactly where his bread is buttered,” says Jordan Marks, executive director of the Washington, D.C.-based National Public Pension Coalition. “The Manhattan Institute and Pew Charitable Trusts are both aligned with right-wing ideologue John Arnold, who has funded a massive effort to gut public pensions all across the country.”

On October 15, Reed filed papers with the California Attorney General for his ballot initiative, known as the Pension Reform Act of 2014. Democratic mayors Bill Kampe of Pacific Grove, Pat Morris of San Bernardino and Miguel Pulido of Santa Ana, along with Anaheim’s Republican mayor, Tom Tait, joined Reed in filing the papers. Since then Reed has become a national spokesman for slashing the retirement benefits of public employees.

In a statement released during the October 15 filing, Reed said that “skyrocketing retirement costs are crowding out funding for essential public services and pushing cities, counties and other government agencies closer to insolvency.”

The money Reed has raised for his bipartisan effort has come from mostly partisan conservative policy advocates. He has drawn $200,000 from the Action Now Initiative, a nonprofit affiliated with Texas billionaire and former Enron trader John Arnold; $25,000 from Basic American Foods heir George Hume; $25,000 from venture capitalist Michael Moritz and his wife, novelist Harriet Heyman, and $50,000 from Richard Riordan. Reed disclosed the payments in behested payment reports filed with the city of San Jose.

“Californians,” says Jordan Marks, “should be wary of what Texas billionaires are selling for its firefighters, police officers, teachers and thousands of other public workers.”

Those supporting the current ballot measure are seasoned advocates for what they call pension reform. They include Dan Pellissier who, like Riordan, abandoned his own 2012 statewide ballot crusade after California Attorney General Kamala Harris wrote ballot language describing its efforts to gut constitutional pension protections in unusually frank terms. Moritz and Heyman also helped finance San Francisco’s defeated Proposition B, a 2010 measure that would have cut pension benefits for that city’s employees, with a $245,000 check that bought the signatures to qualify that measure for the ballot. Hume also contributed to this lost cause with $50,500.

As Reed’s New York appearance shows, the effort to cut pensions in California is being closely watched by conservative activists nationwide. Which might explain why, as the battle over his ballot initiative heats up, Reed and his supporters seldom cease repeating the mantra that his proposal is a bipartisan effort.

“I’m a Democrat,” Reed told his Manhattan Institute audience last week. “We’re a Democratic city in a very blue Democratic state. So why would a Democrat in those circumstances take on pension reform over the objections of not only our 11 bargaining units in the city of San Jose but statewide bargaining units as well?

“That’s because the alternatives were worse,” he continued. “The alternative of doing nothing put us at risk of service delivery insolvency and ultimately, bankruptcy.”

Union activists and their supporters disagree.

“The reality is that this is a right-wing driven effort with Chuck Reed as the puppet,” says Steven Maviglio, a publisher of the California Majority Report and a Sacramento-based political consultant whose clients include Californians for Retirement Security, a labor coalition representing 1.5 million public employees and retirees. “If you peel back the veneer, you can see that the money, the energy and the reasoning for this is all driven by Republicans.”

More Related Stories

Featured Slide Shows

  • Share on Twitter
  • Share on Facebook
  • 1 of 11
  • Close
  • Fullscreen
  • Thumbnails
    Martyna Blaszczyk/National Geographic Traveler Photo Contest

    National Geographic Traveler Photo Contest Entries

    Slide 1

    Pond de l'Archeveche - hundreds thousands of padlocks locked to a bridge by random couples, as a symbol of their eternal love. After another iconic Pont des Arts bridge was cleared of the padlocks in 2010 (as a safety measure), people started to place their love symbols on this one. Today both of the bridges are full of love locks again.

    Anders Andersson/National Geographic Traveler Photo Contest

    National Geographic Traveler Photo Contest Entries

    Slide 2

    A bird's view of tulip fields near Voorhout in the Netherlands, photographed with a drone in April 2015.

    Aashit Desai/National Geographic Traveler Photo Contest

    National Geographic Traveler Photo Contest Entries

    Slide 3

    Angalamman Festival is celebrated every year in a small town called Kaveripattinam in Tamil Nadu. Devotees, numbering in tens of thousands, converge in this town the day after Maha Shivratri to worship the deity Angalamman, meaning 'The Guardian God'. During the festival some of the worshippers paint their faces that personifies Goddess Kali. Other indulge in the ritual of piercing iron rods throughout their cheeks.

    Allan Gichigi/National Geographic Traveler Photo Contest

    National Geographic Traveler Photo Contest Entries

    Slide 4

    Kit Mikai is a natural rock formation about 40m high found in Western Kenya. She goes up the rocks regularly to meditate. Kit Mikai, Kenya

    Chris Ludlow/National Geographic Traveler Photo Contest

    National Geographic Traveler Photo Contest Entries

    Slide 5

    On a weekend trip to buffalo from Toronto we made a pit stop at Niagara Falls on the Canadian side. I took this shot with my nexus 5 smartphone. I was randomly shooting the falls themselves from different viewpoints when I happened to get a pretty lucky and interesting shot of this lone seagull on patrol over the falls. I didn't even realize I had captured it in the shot until I went back through the photos a few days later

    Jassen T./National Geographic Traveler Photo Contest

    National Geographic Traveler Photo Contest Entries

    Slide 6

    Incredibly beautiful and extremely remote. Koehn Lake, Mojave Desert, California. Aerial Image.

    Howard Singleton/National Geographic Traveler Photo Contest

    National Geographic Traveler Photo Contest Entries

    Slide 7

    Lucky timing! The oxpecker was originally sitting on hippo's head. I could see the hippo was going into a huge yawn (threat display?) and the oxpecker had to vacate it's perch. When I snapped the pic, the oxpecker appeared on the verge of being inhaled and was perfectly positioned between the massive gaping jaws of the hippo. The oxpecker also appears to be screeching in terror and back-pedaling to avoid being a snack!

    Abrar Mohsin/National Geographic Traveler Photo Contest

    National Geographic Traveler Photo Contest Entries

    Slide 8

    The Yetis of Nepal - The Aghoris as they are called are marked by colorful body paint and clothes

    Madeline Crowley/National Geographic Traveler Photo Contest

    National Geographic Traveler Photo Contest Entries

    Slide 9

    Taken from a zodiac raft on a painfully cold, rainy day

    Ian Bird/National Geographic Traveler Photo Contest

    National Geographic Traveler Photo Contest Entries

    Slide 10

    This wave is situated right near the CBD of Sydney. Some describe it as the most dangerous wave in Australia, due to it breaking on barnacle covered rocks only a few feet deep and only ten metres from the cliff face. If you fall off you could find yourself in a life and death situation. This photo was taken 300 feet directly above the wave from a helicopter, just as the surfer is pulling into the lip of the barrel.

  • Recent Slide Shows

Comments

Loading Comments...