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2 California Cities Voters Approve Public-Sector Pension Cuts

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posted on Jun, 6 2012 @ 07:32 PM
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article from The New Media Journal
AP/Yahoo! News source

2 California Cities Voters Approve Public-Sector Pension Cuts
 

Voters in two cities in California overwhelmingly voted on June 5th for public sector pension cuts.

San Diego's "Proposition B" passed 67% to 33% !!

San Jose's "Measure B" passed 71% to 29% !!

Wide margins in favor of pension cuts for their respective cities.


Voters in two major California cities overwhelmingly approved measures to cut retirement benefits for city workers Tuesday in contests being closely watched as states and local governments throughout the country struggle with mounting pension obligations.

In San Diego, 67 percent voted in favor of Proposition B while 33 percent were opposed. More than 65 percent of precincts reported.

The margin in San Jose was even wider, with 71 percent in favor of Measure B and 29 percent opposed. Nearly half of precincts reported.

San Jose Mayor Chuck Reed called the vote a victory for fiscal reform. "The voters get it, they understand what needs to be done," he said in an interview.

Supporters had a straightforward pitch: Pensions for city workers are unaffordable and more generous than many private companies offer, forcing libraries to slash hours and potholes to go unfilled.



Pensions are generally an expense that usually grows regardless of revenue declines, but then we see gaps.

When revenues fall, cuts to expenses can be enacted, but there is a long delay until the pensions self adjust.

Big problem nationwide.

How much can they keep borrowing before bankruptcy ?



Opponents, led by public employee unions, say the measures deprive workers of benefits they were counting on when they got hired...

The ballot measures differ on specifics. San Diego's imposes a six-year freeze on pay levels used to determine pension benefits unless a two-thirds majority of the City Council votes to override it. It also puts new hires, except for police officers, into 401(k)-style plans.




Related story (Breitbart):
West-Coast Wisconsin: Californians Vote for Public Sector Pension Cuts




posted on Jun, 6 2012 @ 07:45 PM
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At any moment now the public sector whiners will be chiming in about how they pay the public employees with their taxes, blah blah blah. This is BS. As a public employee, this worries me alot. Typical politics, run the finances into the ground, then pass the burden to the public employees. Sickening!



posted on Jun, 6 2012 @ 08:06 PM
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Originally posted by imawlinn
At any moment now the public sector whiners will be chiming in about how they pay the public employees with their taxes, blah blah blah. This is BS. As a public employee, this worries me alot. Typical politics, run the finances into the ground, then pass the burden to the public employees. Sickening!


Don't you think the "401k" style plans are any good ?

At least the money from YOU and the EMPLOYER fund the accounts immediately.

Not to mention the fact that the "pension" has better protections form bankruptcy.

The cities and states never funded the plans properly to begin with.
I guess they didn't have the extra cash ?



posted on Jun, 6 2012 @ 11:17 PM
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reply to post by xuenchen
 


I think the cuts in killafornia are coming in a decade or two too late.



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