Chicago mayor hopeful for pension reform in new year | Reuters

* Believes lawmakers will pass reforms in January

* Four pension funds face $19.2 bln unfunded liability

* “The alternative is untenable” – Emanuel

NEW YORK, Oct 5 (Reuters) – Chicago Mayor Rahm Emanuel told a Wall Street audience on Friday that he believes Illinois lawmakers will pass needed public pension reforms in January.

“The alternative is untenable,” Emanuel said at a Municipal Analysts Group of New York luncheon.

“I think we have crossed the point of whether,” said the mayor, a Democrat. “My real question is do they do things that are fundamental” reforms.

The city’s four pension funds covering municipal workers, laborers, police, and fire fighters, face a collective $19.2 billion unfunded liability at the end of the current fiscal year.

The Chicago Public Schools, a separate taxing entity that Emanuel controls, has a projected $7.1 billion unfunded pension liability. The school system, the third-largest in the nation, is eyeing a $1 billion budget deficit in the next fiscal year as its pension payment is expected to nearly triple.

In May, Emanuel proposed a plan to temporarily stop cost-of-living increases for retirees, phase in higher worker contributions for pensions, and increase the retirement age. He said at that time the alternative to doing nothing would be allowing the funds to go bankrupt or raising city property taxes by 150 percent.

However, pension reform for Chicago and for the state, which faces its own huge unfunded liability, failed to make it out of the Democratic-controlled Illinois Legislature so far this year.

Emanuel said because 20 to 25 percent of state legislators will be retiring in January, they have nothing to lose by cracking down on pension costs during a session of the current General Assembly that month.

“This is a free vote,” he said.

Democrats used a January lame-duck session in 2011 to push through big increases in income tax rates.

A report released by Nuveen Asset Management on Friday compared Chicago’s pension funding with New York, Los Angeles and Houston and concluded that Chicago was in the worst shape.

“Not only are Chicago’s unfunded pension liabilities much larger than the other cities on a nominal basis, they’re also much larger when compared within the context of each city’s economic resources,” Nuveen said.

Moody’s Investors Service in April revised the outlook on Chicago Aa3 general obligation rating to negative from stable, citing a lack of a detailed plan for dealing with the city’s growing pension liability.

via Chicago mayor hopeful for pension reform in new year | Reuters.

Atwater Fourth City in California Moving towards Bankruptcy | JD Journal

On Wednesday night, the city council of Atwater, California declared a fiscal emergency placing the city of 28,000 on the path towards bankruptcy. Three cities in California, Stockton, Mammoth Lakes, and San Bernardino, have already declared bankruptcy. Though California law requires local governments to enter into talks with creditors to avert bankruptcy, municipalities can bypass that requirement by declaring a fiscal emergency prior to filing for bankruptcy. In fact, San Bernardino, which filed for bankruptcy on August 1, followed the same strategy to evade prolonged discussions with its creditors.

Atwater municipal funds were hit hard after the housing market went bust and property tax revenue dried up. Furloughs, layoffs, and a freeze on hiring were insufficient for Atwater to revive its economy and fix a current budget gap of $3 million.

Without seeking any innovative method, Atwater city officials are focused on battling losses by time-honored tactics of raising rates for municipal services on a populace already exhausted by the long recession. They are trying to raise rates for essential services like providing water and garbage collection, while at the same time reducing  the proportion of services, trying to eke out a profit from in between the principles of ‘charge more’ and ‘give less.’

via Atwater Fourth City in California Moving towards Bankruptcy | JD Journal.

Dana Summer cartoon: Romney rolls over Obama | StarTribune.com

 

Dana Summer cartoon: Romney rolls over Obama | StarTribune.com.

Mineola Village Employees FIle Grievance Over Vacation Days – Mineola, NY Patch

Mineola Village employees have been getting more time off than they were entitled to according to village officials. Following an audit, it was discovered that village employees were receiving their vacation days on January 1 of each year instead of the anniversary date of the start of their employment. The practice had reportedly been going on for years and long before any member of the current administration was involved with the business of the village.

While the village board took steps to correct the discrepancies and accounting practices, the employees union filed a grievance, which the village board denied during their regular meeting on September 19 at the village hall.

The grievance charge is that the village is in violation of the collective bargaining agreement by unilaterally changing vacation accrual, according to village attorney John Spellman. The grievance demands the village stop and all members be made whole for all moneys and benefits. Under the union contract, there is a grievance procedure, the third step being that when the union is not satisfied with the results, the matter comes before the village board.

Provisions in the employees contract indicated that vacation days were awarded on an employee’s anniversary date of employment. However, before the practice was discovered, employees could potentially have received vacation days for working less than one year. Employees of the village receive 2 weeks vacation after one year of service.

“Unfortunately over the years, an accounting practice occurred according to which employees were given vacation on January 1 instead of the anniversary date of their employment.,” Spellman said.

“When we performed an audit in this area, we found the discrepancy. We spoke to the union, they said ‘look, you cannot award people vacation before it is earned, as a result we’re going to correct the situation and follow the terms of the contract which provide that vacation is awarded on anniversary dates.’ We also told the union that if there’s any person who might be severely prejudiced by this switchover, come talk to us; for example if a person had booked a cruise, counting on that much accumulated time, we could move some sick time over temporarily until the vacation time is earned. The union insisted upon filing the grievance.”

A representative from the United Public Service Employees Union was not immediately available for comment.

“By awarding vacation time on their anniversary date, we’d be abiding by the contract that’s an agreement with the union,” Mayor Scott Strauss said.

“If we give a person vacation time before they’re entitled to it, it is a gift of taxpayer money which is not permitted,” Trustee Lawrence Werther said, noting that it was his understanding that the practice came to be before any current employees were working on bookkeeping for the time.

Werther also pointed to a similar situation occurring when the administration discovered that village employees were required to contribute a portion to their medical expenses.

“The unfortunate part is if we find out that there is something going on that costs the taxpayer money and we don’t work to correct it, then the board becomes personally liable for those monies,” he said.

The union has 30 days from the date of the village board’s denial to file the lawsuit appealing the decision to the Public Employees Relations Board (PERB), a state mediator.

via Mineola Village Employees FIle Grievance Over Vacation Days – Mineola, NY Patch.

Chicago Teachers Union: Contract Votes Being Counted – WGN

CHICAGO— Chicago Public School teachers overwhelmingly approve their new union contract with CPS.

79 percent of them voted in favor of the agreement, which is the highest approval rating for a contract in their union’s history.

Chicago Teachers’ Union president Karen Lewis said the vote is a victory for students and teachers.

The two sides reached a deal in September after teachers walked the picket lines for seven days.

The contract includes a seven percent pay raise over the next three years, and a recall policy for highly-qualified teachers who lose their jobs.

The school system is facing a one billion dollar deficit, and the Chicago Board of Education is trying to figure out how to pay for the new deal.

“I think we have a path which will be made public shortly to paying for this year without having to impact schools any further. So I think when people see what we are doing for this year, we’re in good shape. The truth of the matter is, we still have a huge fiscal challenge in 2014 and beyond, and we’re going to have to address that. We really don’t have an answer for that yet,” said School Board President David Vitale.

via Chicago Teachers Union: Contract Votes Being Counted – WGN.

Protected: Reader’s view: Fosle is the best candidate to represent District 7B | Duluth News Tribune | Duluth, Minnesota

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Minnesota school bus driver charged with slapping 6-year-old | Duluth News Tribune | Duluth, Minnesota

BLUE EARTH, Minn. — A Blue Earth school bus driver has been charged with slapping a 6-year-old passenger who she says was unruly.

Seventy-two-year-old Jane Brooks is charged with fifth-degree assault.

Brooks says the 6-year-old was hitting a smaller child on the head with his book bag during an afternoon route Sept. 14.

She says the boy refused to move to another seat so she had to physically move him. The child then began kicking passengers across the aisle. Brooks says she radioed for help and school staff told her to move other children away from the boy.

The Fairmont Sentinel reports as Brooks was doing so, the boy spit on the children in the seat behind him.

A criminal complaint says Brooks told the boy to stop spitting and when he did so again, she slapped him across the face.

via Minnesota school bus driver charged with slapping 6-year-old | Duluth News Tribune | Duluth, Minnesota.

Reader’s view: Assault charges against officer uncalled for | Duluth News Tribune | Duluth, Minnesota

Let me see if I have this straight. The Duluth police department was called recently because a drunk man was violent and out of control. When the responding police officer arrived, the drunk man struck the officer in the face, whereupon the police officer used non-lethal force to subdue him. As a result, the police department will request assault charges against the officer while charges against the drunk man who struck the officer first have been dropped. A delegation of senior police officials even visited the man and essentially apologized to him (“Duluth cop accused of assaulting man in wheelchair,” Sept. 28).

Is that a great country or what? Or maybe we are living in Alice in Wonderland.

David Smith

Duluth

via Reader’s view: Assault charges against officer uncalled for | Duluth News Tribune | Duluth, Minnesota.

Erik Simonson’s name on 7B ballot brings issues to forefront

Erik Simonson’s name on 7B ballot means issues go to forefront

It’s official — Erik Simonson’s name will appear on the ballot as the DFL-endorsed candidate for Minnesota House District 7B.

The Minnesota Supreme Court ruled earlier this week that Erik’s name replace that of Rep. Kerry Gauthier, the DFL incumbent who ended his campaign in August for personal reasons.

Although we were prepared to win the first write-in campaign in Minnesota history, doing so would have been a significant challenge. This is great news. It means we can shift our focus from the mechanics of voting to talk about the actual issues that matter to the citizens of District 7B.

Minnesota DFL Chair Ken Martin put it well in his statement to the media:

“As we have said, our purpose in filing this petition was ensuring a fair election for the voters in District 7B. We are glad to learn that the Minnesota Supreme Court agrees that Duluth voters should have a chance to choose between the endorsed candidates of the major parties — a choice that Minnesotans in every other district in the state will have on Election Day.”

via Erik Simonson’s name on 7B ballot brings issues to forefront.

Village Responds To Grievance From Employees Union

The Mineola Village Board responded to a grievance made by the Mineola union reps from the United Public Service Employees Union (UPSEU). The union held that village employees wanted vacation time awarded in a calendar year (Jan. 1) rather than on each employee’s anniversary work date.

Mineola is currently in contract talks with village employees. The previous contract stipulations are still in effect, aligning with the Triborough Amendment in the Taylor Law. The law prohibits a public employer from changing any part of an expired labor agreement until a new one is reached.

According to village officials, the contract currently states that employees are supposed to attain vacation time awarded on their anniversary date, not Jan. 1. Therefore, officials said, the board is approving to abide by the details of the union contract.

Village Attorney John Spellman stated the union felt Mineola was in violation of the collective bargaining agreement, by “unilaterally changing vacation accrual, and the union demands that the Village of Mineola cease and desist this action and further demands that all affected members be made whole for all benefits lost as a result of this violation.”

The contract, according to Spellman, indicates the village cannot award vacation time based on an apparent “accounting practice error” that occurred, giving employees their vacation authorization on Jan. 1.

Mineola performed an audit and found the discrepancy and notified the UPSEU, a Ronkonkoma-based organization. The union did not return calls for comment.

The UPSEU could bring the issue to New York State’s Public Employment Relations Board (PERB) to attempt to force the village’s hand. Mineola officials have not received notice if the union will pursue the PERB option.

“We cannot award vacation before it is earned,” Spellman stated. “As a result, we are going to correct the situation and follow the terms of the contract, which provide that vacation is awarded on anniversary dates.”

The village’s decision rested on following what was agreed upon when the current union contract was ratified. Village officials told the union that any employee who feels wronged, should notify Mineola.

“For example, if a person booked a cruise, counting on that much accumulated time, we could move some sick time over temporarily until the vacation time is earned,” said Spellman.

The union in turn, filed the grievance and Mineola officials needed to decide if the charge had any merit. Village counsel recommended that they follow what’s been set in the agreement between the employees and Mineola.

“By awarding vacation time on an anniversary date, we would be abiding by the contract that is in agreement with the union,” Mineola Mayor Strauss stated.

Trustee Larry Werther revealed that to his knowledge, there are a number of factors that come into play. According to Werther, this error occurred before any current bookkeeping employees were working for Mineola. Furthermore, Werther said, “if a village entity gives vacation time before they’re entitled to it, it is a gift of taxpayer money that is not permitted.

“The unfortunate part is, if we find out there is something going on that is costing taxpayer money, if we don’t work to correct, then the board becomes personally liable for those monies,” Werther continued. “So by enforcing the rules of the contract, we’re doing what’s fair. A reasonable effort has and is being made to take care of any employees…if they were prejudiced in any way.”

via Village Responds To Grievance From Employees Union.