L.A. Chamber warns that union retirement deal looks like Sacramento-style politics

Two days before the City Council is expected to vote on a crucial early retirement package for thousands of workers -- hoping to avoid the need for layoffs and furloughs -- Los Angeles' most prominent business organization warned that the proposal would increase the city’s “massively unfunded and unsustainable pension liability.”

The Los Angeles Area Chamber of Commerce sent Mayor Antonio Villaraigosa and the City Council a letter today complaining that the public had not been informed of the financial consequences of the proposed agreement, which would delay pay raises for two years for 22,000 workers, then give six increases between July 2011 and January 2014. The proposal was first disclosed in The Times.

Instead, the labor agreement "appears poised to deliver the kind of short-term political gain and long-term financial pain that has contributed to California’s fiscal implosion,” chamber President and Chief Executive Gary Toebben wrote.

Councilwoman Jan Perry would not say how she will vote on Friday. Perry said she has not yet received a report that explains whether the pension fund can absorb the cost of a new early retirement plan.

“The problem is, now we’re up against a deadline, which is July 1” – the start of the new fiscal year, she said.

-- David Zahniser at L.A. City Hall 

Comments

[Rob P]

Interesting information can be found here http://californiapensionreform.com/

[Annette]

It's about time some one commented on this. It is so obvious this is just a band-aid fix

[anon]

scandalous behavior by our elected officials, as usual....

[August]

They would steal your kid's piggy banks if they could; and that might be in the deal too!

[Bill]

Public employee unions are sucking massive amounts of money from the taxpayer. The crooked politicians are not going to do anything about this. They have been bribed by the unions. They are more concerned about getting re-elected than doing the right thing. Public employee unions are the downfall of California.

[scaredemployee]

Im seeing quite a few comments about employee unions and how they are hurting California. But some of us little worker bees that do all the dirty jobs and are paying their union dues and are living in fear of losing their jobs wonder why city council members salaries aren't being questioned (180,000+ a year, eight cars & eleven assistants). Some city depts. actually generate revenue for our beautiful city and the diligent workers are proud to do so. So before we start gnashing our teeth we should look at all the factors.

[Karen]

How is this kind of behavior even legal? If it weren't for the LA times reporting this we would never have known it was even happening! This is exactly why we're in so much trouble right now. We have to have a special election to raise taxes yet the guys with the cigars and whiskeys in the back room, just gently side step right around us. This is criminal, nothing less. Where's a legislator who has the spine to make a law that the citizens have to not only be informed, but VOTE on this! They write up bills about blueberry commisions, you think they could come up with something of substance? Thanks to LA times for doing the work of finding out about what the gangsters are up to.

[michel]

And in case anyone was wondering why we need journalists and a paper well there is one example. Maybe we still need someone watching out, newspapers are not dead.

[Timray]

i am so grateful......i don't live or pay taxes there

[Smi2le]

The 90% early retirements for police and fire fighters are even worse and now account for 20% of the budget of many cities and counties in California and rising rapidly.