Pension Reform Proposal

By Tobin Brinker

Pension Reform is needed to get San Bernardino back on track. Furloughs didn't save enough money and reduced the city workforce. Other local cities like Colton and Yucaipa have shown that pension reform saves more and puts employees back to work.

History: Last year's budget was originally proposed as half cuts (concessions from the unions) and half new taxes. Like Governor Brown we were unable to get the votes to put a tax measure on the ballot and had to do a cuts only budget. I supported the tax proposal then because I thought the cuts would be too deep. Now that the cuts have been implemented we can see that they are too deep. If we cannot raise taxes then we must find the revenue somewhere else. We need to re-hire laid off employees.

Pension Reform is the right place to start the discussion about where the revenue will come from. Last year San Bernardino had 122 employees that earned over $100,000 dollars and paid zero towards their own pension because past mayors and councils approved paying the employee portion of the pension. If those 122 employees paid their portion it would save the city $1 million dollars. There was another 284 employees that earned over $100,000 when overtime was added in. If all 406 paid the employee share of the pension costs the city could save over $3 million dollars which could be used to re-hire laid off positions and return service levels.

Important Facts

1 out 3 city employees earned over $100,000 dollars last year.

Most earned that amount by overtime which resulted from lay-offs which meant fewer people to do the work.

When the recession ends-

o Our negotiations got many short term savings but...we will have big expenses when the union contracts end and pay and benefits shoot up again.

o We will be competing with surrounding cities like Colton, who have already achieved long term pension reform.

o San Bernardino will have to meet rising the payroll demands of our union contracts first instead of rehiring employees or re-establishing cut programs.

o Younger employees were hurt the most in the recession. Seniority rules meant new hires were the ones laid off. Pension costs of older employees will reduce pay and benefits for younger employees when the recession is over.