GOP budget proposals to governor Brown




Several bay area newspapers have addressed the Republican Senate leadership budget proposals. The text provided below is from the Sac Bee.

After a day of back and forth negotiations with Gov. Jerry Brown, Senate Republicans Bob Dutton and Sen. Bob Huff issued the following statement:

“Governor Brown challenged Republicans to be engaged in the budget process. Republicans have been engaged for months. Today he was presented with a thorough outline, which reiterates our priorities, including: getting our state back on track by reining in runaway spending; controlling unsustainable public employee pensions; getting people back to work; protecting and improving our state’s public education system; and making critical adjustments to the governor’s flawed budget.”

Republicans were accused of being the party of ‘no’ and now Republicans are accused of being the party of ‘too much yes.'”

Gilbert note. As this is a lengthy list I will encourage readers to go the Sac Bee link as provided below.

Let me simply say that the GOP list addresses pension reform, regulatory reform, CEQA, GHG, spending cap, education reform, RDA, enterprise zones and taxes.

Following is the entire text on pensions. I am disappointed that in the area of RDA it only mentions a “Huff compromise,” whatever that is, and an “overall hit to budget, including compromise=$700 million-$1 billion”

What did they say??  This one sentence response to the future status of RDAs is not acceptable.

In any case this is the full text on pension reform:


Starting Point:

o Applies to both future and current employees (severability for existing) – (Admin: NO)
o Equal share of pension costs between employer & employee (50/50 split) – (Admin: NO)
o Increase retirement formulas (Little Hoover Commission) – (Admin: NO)
o Uniform standards and definitions for disability benefits- (Admin: NO)
o Reduce growing state payroll & salaries (LHC) – (Admin: NO)
o Voter approval for future increases (Admin: No)
o And all of the items below:

Anti-Spiking – Current and Future Employees (as legally achievable)
o No purchases of Air-Time (Admin: OK)
o Highest 5-year average. (Admin: Highest 3 year average, with CalSTRS exception for 25 years of service)
o Base pay [salary only – no vacation, overtime, car allowance, uniform allowance, etc.] used for determining final retirement benefits. (Admin: Base benefits on regular, recurring pay)
o No Double-Dipping /Revolving Door (Admin: Allow retired annuitants (cost effective for state), but forbid drawing a full-time salary and a pension from the same employer)

Cost Control- Current and Future Employees (as legally achievable)
o Cap Final pension amount (Admin: Ok w/Cap of $106K w/COLA – same as Social Security – and additional 12.4% for non-SS employees.)
o Increase employee cost sharing for health and pension benefits. (Admin: NO)
o Increase vesting time for health care.
o Disallow employer making employee’s contributions/no pension “holidays” for employers or employees (Admin: Ok. Limit going below normal cost).
o No retroactive benefit increases (Admin: OK)
o Incentive-based 401-k style option for current employees in a manner that guarantees cost-saving

Future employees
o Permit public employers to change (lower) of future unaccrued retirement benefits (Admin: Maybe)
o Mandatory hybrid pension plan. (Admin: Require creation of hybrid option, based on federal government model, to be offered by systems by July 1, 2012.

o Governing board conflict of interest and greater transparency (Admin: Add 2 public members to each retirement board. For CalPERS, switch SPB representative to DOF)

o 2/3 Legislative approval required for changes to salaries & benefits (Admin: Maybe)
o Strengthen standards for revoking or reducing pensions of public employees and elected officials convicted of certain crimes involving the public trust. (Admin: Ok)
o Legislature to set actuarially-sound rate for CalSTRS and fund within Prop 98

o SUMMARY OF WHAT WE THINK GOVERNOR AGREED TO: Little Hoover Commission’s recommendations – minus existing employees and no mandatory hybrid for current employees.

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