Pension reform added to 2013 ballot, Stanton and council unanimously agree – East Valley Tribune: Ahwatukee Foothills

The city will ask voters next spring to approve changes to a proposed pension reform as the Phoenix City Council unanimously voted for it to be on the March 2013 ballot.

Mayor Greg Stanton said in a statement following the council’s policy session that “reform is an important issue, both to taxpayers and to city employees.”

Details of what exactly will go through modifications to the current pension program won’t be certain until later this year. The council will be presented with data in October, modeling the impacts of the possible changes to the city of Phoenix Employee Retirement System, said Brandi Ishcomer of the City Manager’s Office.

Staff will work with the consulting team during the City Council’s summer recess to gather that data, according to Ishcomer.

The proposed changes presented to council last December by the Pension Reform Task Force included modifying retirement eligibility. The changes would establish normal retirement age of 63 with a minimum of 10 years of service and an early retirement age of at least 55 with 10 years of service.

The proposed pension changes, if approved, would take effect July 2013.

“We have to do right by our hard-working taxpayers and our hard-working city employees so that a fair outcome benefits our city’s future economy as a whole,” Stanton said.

via Pension reform added to 2013 ballot, Stanton and council unanimously agree – East Valley Tribune: Ahwatukee Foothills.

Quinn Signs Budget, Wants Pension Reform & DCFS Funding: Chicagoist

Gov. Pat Quinn signed a $33.7 billion state spending plan yesterday that closes or consolidates 57 state correctional, juvenile justice, and department of human service facilities. That move sliced $57 million from state spending, which Quinn wants to go toward the Department of Children and Family Services (DCFS), from which lawmakers plan to cut $50 million. He spoke at a news conference yesterday:

“Are we going to keep outdated, half-full facilities, which were fully funded by the legislators… or are we going to invest and make sure we protect vulnerable children? We need to make sure we protect our children in Illinois through the Department of Children and Family Services. We cannot afford to have literally hundreds of workers there who deal with child abuse let go, and we maintain facilities that are half-empty.”

While the budget cuts spending, pays bills, and reforms Medicaid, Quinn is insisting that something be done about pension reform. The Tribune reported that though the overall budget is “comparable to what the state spent five years ago, the amount earmarked for pensions has roughly tripled during that time, from about $1.7 billion to nearly $5.3 billion.” Quinn said:

“We just simply cannot afford this. The squeeze is on our money, our allocations for education, for human services, for health care, for public safety. Less and less of the percentage of our budget will go to those important causes if we don’t reform our pension system.”

When the legislature returns in November after the election, Quinn plans to ask for lawmakers to restore DCFS funding.

via Quinn Signs Budget, Wants Pension Reform & DCFS Funding: Chicagoist.

Selectmen approve police union raises – The Boston Globe

Selectmen have signed off on a ratified police union contract, and also plan to restore roughly $40,000 to preserve a police position that was to be eliminated because of a recent failed override. Town Administrator Tracy Blais told selectmen at a meeting in June that the town’s last contract with police expired on June 30, 2009, and members of the department have gone for more than four years without any raise. Under the new contract, they will receive a 1 percent increase in fiscal 2013, which begins Sunday, and 2 percent increases in fiscal 2014 and 2015. Meanwhile, Blais said she expected that negotiations with the Police Department on health insurance plans will save the town about $40,000. At her suggestion, selectmen approved reinvesting any money saved to preserve a position that was to be cut as a result of a failed $293,000 override this spring.

via Selectmen approve police union raises – The Boston Globe.

York commissioners OK union contract – York Dispatch

York County Commissioners on Wednesday approved a new union contract with 36 employees of the York County Youth Development Center.

The previous contract expired Dec. 31, 2010. Pay increases will be given retroactively, with 2 percent for 2011, 2.25 percent in 2012, 2.5 percent in 2013, and 2.75 percent in 2014, said Kristy Bixler, the county’s director of human resources.

Teamsters Local 776 has voted and ratified the contract, said Fred Wilson, president. He said the contract calls for a “minimal” increase in health insurance contributions, but employees are happy with it.

“We know times are a little tough right now,” he said. “We’d always like better, but there’s also reality.”

via York commissioners OK union contract – York Dispatch.

Letters: The wrong kind of pension reform – latimes.com

Marcia Fritz asks voters to require that future public employees in California “share the risks associated with their [pension] plans with taxpayers.”

Fritz doesn’t mention that shifting from traditional pensions to 401(k) plans has utterly destroyed pension security for private sector workers. In a June 2010 article, Reuters columnist Mark Miller wrote that a Federal Reserve survey found that the net worth for the median American family fell nearly 40% in the three-year period ending 2010, and that the Employee Benefit Research Institute says that 60% of households tell it that their savings and investments (excluding home values) total less than $25,000.

There is a real need for pension reform in California, but shifting public workers to 401(k) plans should not be part of the solution. Along with reform of public pensions, we should be working to restore pension security in the private sector.

David Lewis Muir

Palos Verdes Estates

The writer chairs the Retirement Security Committee of the California Retired County Employees Assn.

Fritz writes: “Public employees in California earn salaries similar to their counterparts in the private sector.”

I am a retired attorney who specialized in environmental law at the California Department of Justice. I served the state for almost 34 years, and upon retirement my annual salary as a supervising attorney was $130,000. There are indeed lawyers in the private sector earning an annual wage in the range of my salary at retirement, but they happen to be in the first five years of practice.

Fritz should poll the very experienced private attorneys I regularly faced in court (in my effort to protect the state’s general fund) and ask what salary a 34-year veteran private attorney earns. I am not defending billings of $400 an hour, but let’s put an end to the suggestion that public employees earn the same as their counterparts in the private sector.

Donald Robinson

San Pedro

via Letters: The wrong kind of pension reform – latimes.com.

Warwick reaches new police, fire agreements | WPRI.com

WARWICK, R.I. (WPRI) — The city of Warwick has reached new contracts with its police and firefighter’s unions.

The current deals between the city and the unions expired Saturday, and the new three-year agreements take effect Sunday.  A news release indicated that the agreements contain “considerable cost savings over the life of the agreements.”

Mayor Scott Avedisian will announce the terms of the recently-approved contract at a press conference at City Hall Monday afternoon. Representatives from the police and fire unions will also attend.

via Warwick reaches new police, fire agreements | WPRI.com.

National View: Why Chief Justice Roberts upheld the health-care act | Duluth News Tribune | Duluth, Minnesota

It’s the judiciary’s Nixon-to-China: Chief Justice John Roberts joins the liberal wing of the Supreme Court and upholds the constitutionality of Obamacare. How? By pulling off one of the great constitutional finesses of all time. He managed to uphold the central conservative argument against Obamacare, while at the same time finding a narrow definitional dodge to uphold the law — and thus prevented the court from being seen as having overturned, presumably on political grounds, the signature legislation of this administration.

Why did he do it? Because he carries two identities. Jurisprudentially, he is a constitutional conservative. Institutionally, he is chief justice and sees himself as uniquely entrusted with the custodianship of the court’s legitimacy, reputation and stature.

As a conservative, he is as appalled as his conservative colleagues by the administration’s central argument that Obamacare’s individual mandate is a proper exercise of its authority to regulate commerce.

That makes congressional power effectively unlimited. Mr. Jones is not a purchaser of health insurance. Mr. Jones has therefore manifestly not entered into any commerce. Yet Congress tells him he must buy health insurance — on the grounds that it is regulating commerce. If government can do that under the commerce clause, what can it not do?

“The Framers … gave Congress the power to regulate commerce, not to compel it,” Roberts writes. Otherwise you “undermine the principle that the Federal Government is a government of limited and enumerated powers.”

That’s Roberts, philosophical conservative. But he lives in uneasy coexistence with Roberts, custodian of the court, acutely aware that the judiciary’s arrogation of power has eroded the esteem in which it was once held. Most of this arrogation occurred under the liberal Warren and Burger courts, most egregiously with Roe v. Wade, which willfully struck down the duly-passed abortion laws of 46 states. The result has been four decades of popular protest and resistance to an act of judicial arrogance that, as Justice Ruth Bader Ginsburg once said, “deferred stable settlement of the issue” by the normal electoral/legislative process.

More recently, however, few decisions have occasioned more bitterness and rancor than Bush v. Gore, a 5 to 4 decision split along ideological lines. It was seen by many (principally, of course, on the left) as a political act disguised as jurisprudence and designed to alter the course of the single most consequential political act of a democracy — the election of a president.

Whatever one thinks of the substance of Bush v. Gore, it did affect the reputation of the court. Roberts seems determined that there be no recurrence with Obamacare. Hence his straining in his Obamacare ruling to avoid a similar result — a 5 to 4 decision split along ideological lines that might be perceived as partisan and political.

National health care has been a liberal dream for a hundred years. It is clearly the most significant piece of social legislation in decades. Roberts’s concern was that the court do everything it could to avoid being seen, rightly or wrongly, as high-handedly overturning sweeping legislation passed by both houses of Congress and signed by the president.

How to reconcile the two imperatives — one philosophical and the other institutional? Assign yourself the task of writing the majority opinion. Find the ultimate finesse that manages to uphold the law, but only on the most narrow of grounds — interpreting the individual mandate as merely a tax, something generally within the power of Congress.

Result? The law stands, thus obviating any charge that a partisan court overturned duly-passed legislation. And yet at the same time the commerce clause is reined in. By denying that it could justify the imposition of an individual mandate, Roberts draws the line against the inexorable decades-old expansion of congressional power under the commerce clause fig leaf.

Law upheld, Supreme Court’s reputation for neutrality maintained. Commerce clause contained, constitutional principle of enumerated powers reaffirmed.

That’s not how I would have ruled. I think the “mandate is merely a tax” argument is a dodge, and a flimsy one at that. (The “tax” is obviously punitive, regulatory and intended to compel.) Perhaps that’s not how Roberts would have ruled had he been just an associate justice and not the chief. But that’s how he did rule.

Obamacare is now essentially upheld. There’s only one way it can be overturned. The same way it was passed — elect a new president and a new Congress. That’s undoubtedly what Roberts is telling the nation: Your job, not mine. I won’t make it easy for you.

via National View: Why Chief Justice Roberts upheld the health-care act | Duluth News Tribune | Duluth, Minnesota.

Pro/con: After Wisconsin, are Public unions still relevant? No | Duluth News Tribune | Duluth, Minnesota

Should public-sector unions be abolished? One governor seems to think so.

“I think really government works better without them. I really do,” said Indiana Republican Gov. Mitch Daniels, appearing on Fox News Sunday with Chris Wallace on June 10.

He was right. Public-sector unions really serve no purpose other than to suck up dwindling taxpayer resources to pay for lavish pension and health benefits that threaten to sink state and local governments into insolvency.

Consider the facts. The combined debt of all states nationwide reached more than $4.2 trillion in 2011. Add to that another $2 trillion to $3 trillion in unfunded pension liabilities and trillions more in untold health-care liabilities.

It’s hard to argue that much good at all has come from allowing public employees to collectively bargain. Except it’s no bargain. All taxpayers have to show for it is a bill that cannot be paid — even with exorbitant taxation, as California is learning.

Daniels’ comments came after Wisconsin Republican Gov. Scott Walker’s crushing victory over Tom Barrett in the June 5 recall.

The vote there was viewed largely as a referendum on his policies to rein in government-worker benefits. His plan requires public employees to pay more into their own health-care and pension packages, guarantees recertification elections for the unions every single year and prohibits state agencies from collecting union dues.

After abortive attempts in recent years to rein in such excesses in states such as California and Ohio, Walker’s win in Wisconsin might be a turning point in the battle between taxpayers and their governments.

Daniels, too, has quite a track record of reining in the unions in Indiana. In 2005, he restricted collective bargaining for state workers. In 2011, he did it again for teachers. And now he has signed a law giving all employees, public and private, the right to decide if they wish to join a union.

Such reforms, taken together, are helping to restore the consent of the governed. No longer will taxpayers at the state level be enslaved to pay for the level of government the government demands.

For that’s all collective bargaining in the public sector essentially is. It creates another branch of government and, through the process, locks in ever-higher levels of benefits for public employees.

Often, collectively bargained union-benefit packages cannot even be amended. All state legislatures can do is vote to approve the final budget that includes the benefits. Does that sound democratic?

So, really, the only solution was to put those benefits back on the table of things that could be cut or modified by legislatures. People’s elected representatives should be making these decisions, not Big Labor.

Limited taxpayer resources are not to be bargained with — and certainly not by politicians and unions, which then simply funnel the money back into their political coffers. It is hard to think of a more corrupt practice in our republic.

But perhaps if Mitch Daniels and Scott Walker have their way, those days are coming to an end. For government to keep its legitimacy it must maintain the consent of the governed, and that will not happen while taxpayers are viewed as mere conduits to transfer their hard-earned money to corrupt union bosses and politicians.

Robert Romano is senior editor of Americans for Limited Government (getliberty.org), which has headquarters in Fairfax, Va.

via Pro/con: After Wisconsin, are Public unions still relevant? No | Duluth News Tribune | Duluth, Minnesota.