Showing posts with label Pensions. Show all posts
Showing posts with label Pensions. Show all posts

Friday, April 1, 2011

Tuesday, January 4, 2011

Strained States Turning to Laws to Curb Labor Unions

Published: January 3, 2011, New York Times By Steven Greenhouse

Faced with growing budget deficits and restive taxpayers, elected officials from Maine to Alabama, Ohio to Arizona, are pushing new legislation to limit the power of labor unions, particularly those representing government workers, in collective bargaining and politics. Scott Walker, new Republican governor of Wisconsin, is threatening to take away government workers’ right to form unions and bargain contracts. State officials from both parties are wrestling with ways to curb the salaries and pensions of government employees, which typically make up a significant percentage of state budgets. On Wednesday, for example, New York’s new Democratic governor, Andrew M. Cuomo, is expected to call for a one-year salary freeze for state workers, a move that would save $200 million to $400 million and challenge labor’s traditional clout in Albany. But in some cases — mostly in states with Republican governors and Republican statehouse majorities — officials are seeking more far-reaching, structural changes that would weaken the bargaining power and political influence of unions, including private sector ones. For example, Republican lawmakers in Indiana, Maine, Missouri and seven other states plan to introduce legislation that would bar private sector unions from forcing workers they represent to pay dues or fees, reducing the flow of funds into union treasuries. In Ohio, the new Republican governor, following the precedent of many other states, wants to ban strikes by public school teachers. Some new governors, most notably Scott Walker of Wisconsin, are even threatening to take away government workers’ right to form unions and bargain contracts. “We can no longer live in a society where the public employees are the haves and taxpayers who foot the bills are the have-nots,” Mr. Walker, a Republican, said in a speech. “The bottom line is that we are going to look at every legal means we have to try to put that balance more on the side of taxpayers.” … …In the 2010 elections, Republicans emerged with seven more governor’s mansions and won control of the legislature in 26 states, up from 14. That swing has put unions more on the defensive than they have been in decades…. http://www.nytimes.com/2011/01/04/business/04labor.html?pagewanted=1&ref=business&src=me

Monday, October 20, 2008

Better, not less oversight needed

By Mark Hill Published Marin Independent-Journal, Oct. 20

    THE BALLOT proposal by the Marin County Board of Supervisors to replace two key elected financial officials is the most brazen attempt yet by Marin's elected representatives to subvert taxpayers' interest in this county.

    Measure B would merge the county auditor and treasurer-tax collector into a single finance chief's job appointed by and accountable only to the Board of Supervisors.

    Representative democracy in this country has, for over 225 years, been built on the foundation of "by for and of the people" in order to protect citizens, and their tax dollars from an over-reaching, profligate and power-hungry government. Over the course of the last decade, the supervisors - all Democrats - have awarded pay packages, benefits and lifetime pensions to retiring municipal union members that in some cases total over $10 million per employee for that retiree's lifetime.

    These pension benefits include lifetime salaries (70 percent to 100 percent of their final salary), full medical and dental (worth $750,000 alone) and cost-of-living increases for life. It far exceed anything available to workers in the private sector.

    These egregious giveaways have saddled Marin with a conservative estimate of $1 billion in unfunded liabilities to date. That's tax dollars committed by our elected officials to the same Marin public employee unions that are their source of large campaign contributions.

    These commitments will crowd out future spending for our children, our roads, our seniors, parks and health care and the environment.

    The incredulous rationale from our supervisors is that by eliminating these two elected positions, we might save $100,000 a year.

    We should be asking, what is the financial cost of losing the accountability that keeps our elected officials honest? The supervisors have recently recused themselves from membership on the county pension board, citing an appearance of "conflict of interest." The 250,000 residents in Marin County have been burdened with this onerous debt by our supervisors, with the complicity of 2,400 current and 3,000 retired public employees. These unilateral giveaways, "negotiated" and signed by our supervisors (all of them entitled to receiving county pension benefits) will eventually need to be paid through additional property taxes, sales taxes, service fees, user fees, higher parking fines, or whatever new scheme they come up with that will pick our pockets to preserve the status quo that provides for public employees first, and leaves taxpayers to pick up the tab. By eliminating elected financial positions and creating instead appointed "toadies," the supervisors are eliminating oversight and removing any accountability. This will allow the unions to continue to hold sway over county revenues to meet their own needs. More importantly, this move puts a padlock on the auditing and treasury functions which will further remove transparency as it relates to more giveaways.

    The county already has gone out of its way not to be transparent when it comes to disclosing public employee salaries and benefits. The Marin IJ had to pressure county supervisors and fight a lawsuit filed by county managers in order to gain access to salaries paid to our public employees with taxpayer monies.

    To think this was even necessary is as startling as it is telling. Our county taxpayers, residents and children deserve better and the Marin supervisors should be made to better explain why they support less transparency and less accountability by the removal of top managers elected to provide independent oversight.

    This flawed plan, if successful, will surely keep our public employee union bosses happy with continued, unfettered, budget-busting giveaways by county supervisors, and ultimately put our county in even more financial peril.

    Mark Hill of Tiburon is former chairman of the Marin Republican Party.

Thursday, March 27, 2008

Mark Hill: Marin faces financial tsunami


THE NEAR-bankruptcy of Vallejo, Marin's neighbor, reads like the script of a teen horror movie.

Greed, stupidity and lack of adult supervision means even the slowest-moving zombie (or slow-developing financial crisis) can inflict a lethal blow....
"Today, governments in Marin have more than $1 billion in unfunded liabilities - a time bomb like the Social Security Trust Fund with its enormous obligations to future generations and an inadequate funding structure. Recently, a number of early retiring public union members have literally hit the "lottery jackpot," receiving the equivalent of a $10-plus million lifetime payout over the next 25 years from Marin taxpayers. Upon retiring in their early to mid-50s to collect their accrued pension and health-care benefits, these ex-county employees are free to pursue new careers or employment, adding thousands more to their already guaranteed incomes.

"As the rolls of these retired public employees grow, the costs will escalate and quickly swamp the budget, resulting in funding reductions ahead for our roads, wastewater plants, flood systems, seniors, the environment and recreation and libraries for our youth..."

See Mark's Marin IJ Opinion piece posted 3/25/08.

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.



Sunday, September 16, 2007

Who is in charge here? by Mark Hill, former Chairman and current member, Marin Republican Party


This recent article about the Marin County public union pension fund advisor and her cronies giving her an unprecedented 40% increase (ummmm...remember, when SHE retires that will be for lifetime benefits too !) is just mind boggling. Even with the increased scrutiny from County taxpayers, the press and lawsuits going against this unmitigated rip off of taxpayers, the union bosses have no shame. Who is in charge of the oversight here one should (and have) ask? Well, its kind of hard to tell from the quotes embedded in this article:
Pensions - Marin County style.

Who is in charge here? By Mark Hill, former Chairman and current member, Marin Republican Party. Blog posted Sunday, 9/16/07. This recent article about the Marin County public union pension fund advisor and her cronies giving her an unprecedented 40% increase (ummmm...remember, when SHE retires that will be for lifetime benefits too !) is just mind boggling. Even with the increased scrutiny from County taxpayers, the press and lawsuits going against this unmitigated rip off of taxpayers, the union bosses have no shame. Who is in charge of the oversight here one should (and have) ask? Well, its kind of hard to tell from the quotes embedded in this article:
MARIN IJ "Supervisor Charles McGlashan, a member of the retirement board, said it's time to look into setting up the pension system as an independent agency. ..."It just creates all kinds of morale problems," McGlashan said Wednesday, before the pension board met for two hours behind closed doors to discuss the issue. He noted that supervisors are being unfairly criticized for a raise that they did not set or have any say in setting. The pension board is made up largely of employees and retirees who benefit from the system they oversee. McGlashan and county Treasurer Michael Smith are the only representatives elected by taxpayers, who last year contributed more than $48 million."
Soooooo.....the County has an unfunded pension liability, (to be paid by Marin County taxpayers..who elected Charles McGlashan to represent them....) of over $700 million and growing and our Supervisor thinks there NOW might be a need for independent oversight? De facto, he is admitting he isn't independent...he's not, he is a public employee too .. owned lock stock and barrell by the Marin County public employee union bosses. Um Charles...you are over to $700 million in give aways TOO LATE.
MARIN IJ "Pension board members refused to disclose any specifics about Wednesday's private session, but after the meeting Smith called the discussion "very tense."Board president Sandy White, a county employee, declined to comment.The pension board's attorney, Linda M. Balok, also declined to comment after the closed-door meeting called to discuss "potential litigation." "
No surprise here...these are all public employees and are part of the public employee UNIONS ...get it? They don't care about taxpayers....thats what our Supervisors should be doing. But they don't and won't unless the cost of doing nothing is higher (letting the Union bosses run things ) than doing something...thankfully we are about there. The public and Marin County taxpayers are outraged as they should be.
MARIN IJ "McGlashan, during a public part of the Civic Center meeting, advanced his proposal to end the longstanding relationship in which pension program workers are considered county employees, even though they are paid by a pension system that has a separate budget and board of directors.
That bureaucratic relationship led to Benner getting a twin set of raises. The pension board approved a three-year, 30 percent increase; also, supervisors approved three years of raises, totaling as much as 13 percent, for Benner and other county department heads.The raises put Benner on a pay pace to be one of the 10 highest-paid county workers. By 2009, her annual pay could hit $239,343. She is now paid $166,046 a year.McGlashan said supervisors were not aware of the pension board pay hike until it wound up on their agenda for their endorsement. He was not at the pension board meeting when it voted to approve the raise, but he has said he would have supported it."
Again, where was leadership here before? The union bosses are smart...to the tune of $700mm by gaming the system so there is NO ACCOUNTABILITY. All of our Supervisors look like a long game of Twister ...blaming everyone but the ones who are responsible: themselves. This game of nods and winks at taxpayer expense should be illegal if it isn't already....the jury is still out on that one in a lawsuit in Orange County against their Supervisors and Public Union Bosses !
MARIN IJ "Supervisor Hal Brown on Tuesday said the pension board should be asked to reconsider and "modify" Benner's pay increase.Supervisors have been told by their lawyers that they have no say over the raise approved by the pension board, but they don't like being politically "tagged" for voting to ratify it, McGlashan said. "
UMMM...where is President Truman when you need him? Where does "the buck stop" Mr. Brown and McGlashan? As I see it, the answer has been clear...the public employee union bosses.
MARIN IJ "He has not complained about the raise, just the bureaucratic process that places supervisors in a position of having to ratify a pay hike over which they have no say.Benner's raise has turned into a political hot potato. Three supervisors - McGlashan, Brown and Steve Kinsey - face re-election in June 2008.McGlashan said there is support among the supervisors to look into getting out of the business of ratifying hirings and wages for the pension board, which has nine other member agencies besides the county."
This is ridiculous.....the Supervisor's solution to the public union boss' $700 million rip off of the Marin County Taxpayers?? Simple: "Run and Hide." One can hardly ignore the fact that none of the Supervisors are openly challenging the unions ... even today !!
MARIN IJ "Benner and County Administrator Matthew Hymel met Tuesday to discuss the matter. Hymel has told supervisors that it would take state legislation to turn the pension system into an independent special district.Benner said San Bernardino County just went through a similar process for its public pension system.She said it appears to be a natural evolution for public pension programs in California."
The Public Employees Union is a STATEWIDE organization. Every county is going through this process because all of the County public employee unions are doing the same thing Statewide. Not only is it bankrupting Marin, but it HAS bankrupted San Diego, Ventura County and many others. There is no "natural evolution" here...this is a sophisticated gaming of our County and State governments by the Union bosses to take untold billions from State and County taxpayers at the expense of our schools, roads, environment and needy people.
MARIN IJ "In Marin, it is a process that began last year with County Counsel Patrick Faulkner's decision to step down as the pension board's lawyer, a job that his office had held for many decades.Faulkner said the pension board needed its own separate legal counsel as he couldn't represent both the county and the pension board if there was a dispute between the two."
Sorry for being slow, but wasn't Patrick Faulkner (oh yes...a public employee too) conflicted when he "ok'd" the very retirement benefits that are now bankrupting our County? He should have recused himself from the beginning. All agreements made with his sign off should all be re visited due to this conflict which he NOW readily admits to. Hello.... District Attorney is anybody home???

MARIN IJ "McGlashan said making the pension system an independent district would be similar to the Transportation Authority of Marin, on which the county has representation, but its board and management decisions are independent from the county.For years, retirement system workers have been considered county employees, even though they are paid by the pension system."

Let me get this straight, actually, forget it....there is no straight about it...I am cross eyed by it. Can't those that supposedly represent us, present taxpayers with a straight answer, accountability and oversight??? If not, why not? Answer: THE PUBLIC EMPLOYEE UNION BOSSES and the Marin County Supervisors who are beholden to them.

MARIN IJ "McGlashan on Tuesday said it's time to consider "disconnecting the type of awkward oversight" role in which supervisors find themselves. The pension system should be "a completely independent body," he said. "
REALLY Mr. McGlashan? Well the question is where have you been? Welcome to the party. We are in the hole over $700mm already.
MARIN IJ "I don't understand why we have anything to do with this," Supervisor Susan Adams said. "This shouldn't even show up on our agendas."
Oh Ms. Adams - It is showing up on your agenda because the Unions set it up that way and with your and all of your colleagues' approvals, it has now cost this County over $700 mm in unfunded liabilities. To put it more bluntly, its your job.
MARIN IJ "Pension board member James Phillips said Wednesday there are no plans to change Benner's contract or to reduce the pay hikes she's been promised.He said the controversy started because the pension board did not confer with the county before it raised Benner's pay. He added that Benner's job is a unique position as it oversees a diversified portfolio that exceeds $1.5 billion."It's not similar to any other position in the county," he said.He praised Benner, who took over the pension's top job in 2005. "She very competent. She's very good. She's very smart," he said."
Well this is great oversight, one public union employee complementing another public union employee for giving away yet more taxpayer money. I remind all, that if this was a business, this "Company" of less than 5000 people would be over $1 billion in debt with not a hint of an idea (except one..tax increases) of how to pay it off.
MARIN IJ "Another board member, Allen Haim, said he was dismayed at moves to separate the pension program from the county."It's been a county family," said Haim, a former assistant county counsel who represents retirees on the pension board. "We're together, whether you separate us out or not.""

We are family???? The County has over 100,000 residents. These 3000 current employees (40% retiring in less than five years) and 2000 plus retirees, have taken their "family members" (that would be us) for over $700 mm. And like any bully, his last line wins its all: "We're together (aka "you are going to have to pay all this money we forced or tricked your Supervisors into paying us..$700mm) whether you separate us out or not". GOD HELP US.
I salute the Fourth Estate ... the Marin IJ ..... for their never ending and great coverage of this travesty. Cheers. mhSee "Pension chief in line for 44% pay raise" by Brad Breithaupt, Marin IJ, Monday, Aug. 27.