The California Foundation for Fiscal Responsibility posted two alternative public pension reform plans on our Web site, and we are inviting stakeholders and the public to help solve one of the most critical problems facing California.
Our lawmakers can’t fix California’s public pension crisis without the public’s help, and it’s got to be done right the first time. If it becomes necessary to put a constitutional amendment before voters, it should be drafted with input from stakeholders, experts and voters. CaliforniaPensionReform.com offers a forum to anyone with information or opinions that can contribute to a healthy debate.
CFFR has posted a compendium of academic studies and government reports on its site. Legal opinions, law review articles, court decisions and more will follow. Financial analysts, lawyers, pension managers and other experts are encouraged to share their information and viewpoints on CaliforniaPensionReform.com.
Both of the alternatives proposed by CFFR will save tax dollars, but this is a problem of immense proportions and opinions may vary on the extent of the savings and when they can be expected. The benefits available under these plans should be compared to those offered by private companies. The law is unsettled on the question of changing benefits for current employees. All who want to be heard on these and other important issues are invited to contribute.
Anyone can use what we learn to draft a reform proposal that will solve the problems in California’s public pension systems and pass the fairness test that voters demand.
The state’s largest pension systems have unfunded liabilities of $425 billion and local systems are nearly $200 billion in the red, according to recent Stanford University studies. The ability of the state and local governments to provide even the most basic level of services is threatened by growing pension obligations.
Voters passed nine local pension reform initiatives in November. Four of the measures were approved by over 70 percent of voters, and four others were approved by majorities exceeding 60 percent. Pension reform measures are being planned for future ballots in Los Angeles, San Diego, San Francisco and other communities.
If California doesn’t act soon, local pension measures will pop up across the state. A clear, consistent framework, built into our state constitution, makes more sense than a piecemeal approach.
Think tanks, universities and financial consulting firms are invited to analyze the financial impact of the reforms on taxpayers, retirees and current employees, with or without CFFR’s help. Law firms, law schools and legal institutes that may want to examine key legal issues are encouraged to share their views on CFFR’s Web site.
It’s important to know what voters think before the final proposal is drafted. Public opinion research will reveal the strengths and weaknesses of different reform ideas. We’d like to hear from anyone interested in advancing a solution to this growing crisis.
CFFR’s Web site is CaliforniaPensionReform.com.