Wednesday, March 12, 2008

Golden Goose is dying


Mark Hill, Danoodle's Pension Go-To Guy, forwarded this link to me, with his comment:

And the goose is killed by union greed - a travesty; Marin is next.

Recall my “the unions will kill the goose” op ed piece three years ago in the IJ….and here we are. The virus is already here in Marin..its called public union employee bullying and, sadly, its probably too late now to do anything about it.

From SF Chronicle, March 10:

..."Vallejo has been hogtied by its police and fire unions," Moore, a local businessman, said later. "The unions are killing the goose that laid the golden egg. Do I need to bring a dead goose to next week's meeting? I hope not."...

Yes, Mark, I do recall your Golden Goose article, and I'm refreshing everyone's memory:

Killing the Golden Goose
By Mark D. Hill, VP, Marin Republican Party
Published Monday, Aug. 16, 2004, MarinScope papers.


Our public employees and the unions that represent them face a compelling case for restructuring. Public employee unions have had so much success in taking care of their members that they are now risking killing the goose that lays the golden egg because their excesses threaten the fiscal solvency of the very public they serve.


For example, in our own Marin County, our Fire Chief oversees a modest 85 firefighters and has responsibility for fire prevention throughout the County. He earns over $200,000 a year in salary and benefits. Many taxpayers are astounded that a "public servant" can receive this type of compensation. The truth is that, their public employees union negotiated these and many other huge contracts. Worse, the compensation is only one component of the largess, which has been largely kept quiet by the politicians who have conveyed them and the union leaders who have negotiated them.


Becoming an officer in the US military is an incredible achievement. A Brigade Commander in the US Army, a Colonel, who oversees approximately 5000 men and assets, including tanks, infantry, and artillery, worth billions of dollars and can be shipped to war overseas at a moment's notice, makes a grand total of $92,000 a year. . His active duty benefits would include some small kickers like combat pay and a housing allowance should there be a war or special duty assignments But, he is a soldier. He can't be home with his family weeks or months at a time during deployment and field exercises; forcing real hardship on this "public servant" and his family which they endure on our behalf. If we compare his pay to what we compensate our County Fire Chief, the differences raise some serious questions.

Yet, the Fire Chief's $200,000 plus compensation are only part of the story. In Marin County, our retiring Fire Chief (or any other position deemed "hazardous") after working 25 years, will receive over 75% of his final salary annually for the rest of his life (today, would be about $150,000 to $175,000 annually plus cost of living increases). And, if he stays on for another few years, the compensation could be up to 100% of the compensation he received at retirement ....for life!! Compare that to our Colonel, who, after twenty five years of service, will receive $60,000 a year with annual cost of living increases.

Firefighters are indeed heroes. However, once one lifts the cover of the bureaucratic semantics, and sees the incredible generosity that our elected leaders have bestowed upon these servants, the glow of righteousness pales. Indeed, today, we see on a daily basis, our valiant military heroes in Iraq paying the ultimate sacrifice on America's behalf. Yet, an enlisted soldier in the military in fire suppression with four years of service makes about $20,000 per year, a Marin County fire engineer ,makes $104,647 in total compensation.

The system that allows this in Marin County is flawed. Why? Because the Public Employee Unions are one of the most active influencing bodies on our public leaders in California. They vote. They faithfully volunteer for campaigns and write big checks with union dues (paid for by taxpayers) and as individuals to their candidates, almost all with a narrow and manipulative view of their own self interest.

For Democratic candidates, the endorsement of Public Employee Unions, particularly in Marin County where all the Supervisors are Democrats, is one of the most coveted, for it means, with certainty, a huge advantage against political opponents. The promise a politician makes to the firefighters and other public service unions, is their "understanding" (aka: "vote") on compensation and retirement issues. The net effect of this dance is that these Public Employees are literally choosing and hiring their own bosses who, once elected, give the Public Employee Unions what they ask for at great financial peril to our County.

Today, the fiscal pressures on our schools and transportation network is overwhelming, yet, the County is paying over 10% of their $192 million budget , $21 million, on employees who aren't there (they are "retired"). Further, the County is preparing taxpayers for the bad news that two-thirds of our current County employee workforce, will be retiring in less than five years further straining our ability to fund for current needs. The Marin County Supervisors just passed a measure to allow some public employees to retire EARLIER so that their lifetime IOUs will kick in sooner (at a lower annual payout) so that these public servants "can move on to other careers".


The end result for Marin County is a fiscal time bomb set to go off in four or five years. At that time, we will need to figure out how to pay for these expensive and lifetime IOUs while trying to hire more even more expensive "public servants" to replace the very ones we just gave early retirement . Sadly, most, if not all of our Supervisors will have departed their positions by then, so accountability will be non existent. Which makes "gaming the system" by the unions possible.

These giveaways are bankrupting this State and will, with certainty, impact the County at the expense of our schools, transportation needs and environment. Taxpayers need to look for leadership capable and willing to restructure this mess or, these one sided giveaways will result in the Public Employees Unions killing the Golden Goose.