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Pension Envy , or Justified Taxpayer Frustration

4/21/2014

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PictureTorrance City Hall or a Country Club
Posted by Arthur Christopher Schaper
April, 21, 2014


Mayoral candidate Pat Furey, a county employee retiring within days with a public pension, slammed the “pension envy” he hears from workers in the private sector who question the generous wages and benefits paid to police officers. (The Daily Breeze)

Creating a new psychological (or psychoanalytic?) disorder, Torrance Councilmember and mayoral candidate Patrick Furey unleashed his fury on private sector employees who criticize the massive pension payouts of public employee..

For the record, many Torrance residents, and likely voters, are private sector employees and small business owners. Still, why would anyone feel “pension envy”?

A growing number of Torrance public safety officers make more than one hundred thousand dollars a year, then take 90% of their salary upon retirement. One retired officer shared with me that the pension formulas shifted in the 1990s, and while he funded his retirement adequately, so that his disbursements would not undermine the pension fund. Another public worker, in Rhode Island, invested his retirement through a private system, so that he would be neither gouging his constituents nor jeopardizing his future.

Pension funding is a serious issue, nonetheless.

Four California cities have gone bankrupt because of unsustainable pension obligations to retired employees. Statewide stats affirm that eighty percent of public school revenues fund retirement pensions and benefits, as well. Cities should serve residents, and schools are supposed to serve students, providing a safe environment to live and thrive. Yet most cities may not survive the liabilities laid upon them because of generous contracts negotiated between public employee unions and prior city councils. Who will protect us from our protectors, indeed?

Instead of “pension envy”, perhaps the proper term should be pension outrage, or entitled entitlement exasperation. El Segundo has had few fires or deaths, and yet the Police Chief is on track to take home nearly $200,000 a year in pensions. In Lawndale, Centinela Valley Union High School District Superintendent Jose Fernandez negotiated a lucrative contract with a compliant school board, which offered to him a base pay near equal to the LAUSD Superintendent, in spite of the fact that he supervises a district one hundredth the size of LAUSD. The perks and pension “air time” offered to the superintendent vaulted his 2013 salary to $663,000. Hermosa Beach parking enforcers make a minimum of $53,000 a year, yet Hermosa Beach’s sewer system needs to be revamped.

And now to Torrance, CA. The Wall Street Journal featured the largest South Bay city in a list of municipalities with overwhelming pension liabilities -- $392,000,000to be precise. Torrance’s Finance Director Eric Tsao disputed the accounting in a Letter to the Editor, arguing that the city’s current expenditures only total 12% toward pensions. Yet percentages can be misleading, as they hide the real costs of pension liabilities, just as California Governor Jerry Brown could declared “We have balanced the budget!” while ignored the enormous wall of debt from public employee benefits.

True, safety officers risk their lives, and in the past they did not survive five years past retirement. Yet today, more public safety employees do live and thrive for decades after leaving the work force, thus placing massive demand on municipalities and taxpayers to fund their pensions.

Pension reform is a necessity for good fiscal health.

Can Furey of “pension envy” fame bring this reform? He is a public employee, also, but so is fellow challenger Tom Brewer. However, Furey just garnered the Torrance Police Officers Association endorsement, and they have $170,000 in PAC money on hand to promote their candidate. No wonder Fury is in flurry to defend current pension obligations.

Despite their financial leverage, California’s public sector unions have endured more losses than wins lately, starting with San Jose and San Diego, where 70% voting majorities endorsed comprehensive pension reforms in 2011-2012. In 2014, Republican Kevin Faulconer won the special election mayoral race in San Diego, as well, despite ten-to-one outside money from union endorsements.

Despite Councilmember Furey’s fury about pension envy, the frustration about unfunded liabilities is not a disease, but rather a symptom of residential outrage, as voters are fed up with city leaders who accommodate present employees and retirees at the cost of current as well as future residents. Crime is up throughout California, and Governor Brown’s realignment has not helped, but a city which spends more money on retired police rather than clear and present law enforcement needs to shift its priorities.

With the most comprehensive turn-around in city leadership coming to pass in the city’s history, Torrance needs representatives who will not just discuss but enact and enforce comprehensive pension reforms, respecting the needs of current and future retirees, while also ensuring that the bulk of city funding funds city needs, not over-generous pension and benefits guaranteed in lucrative contracts signed by temporal city leaders into place without keen foresight or deep regard for foreseeable economic challenges.

Torrance faces a crumbling infrastructure, including potholes and rising need for parks and recreations restoration. Resident's tax money should go toward renewing and revamping the city’s public works, which serve all residents, rather than exclusively sustaining pension obligations for employees no longer working for the city.

Arthur Christopher Schaper is a teacher-turned-writer on topics both timeless and timely; political, cultural, and eternal. A life-long Southern California resident, Arthur currently lives in Torrance.

Twitter -- @ArthurCSchaper
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arthurschaper@hotmail.com
aschaper1.blogspot.com
asheisministries.blogspot.com
waxmanwatch.blogspot.com

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COMMON CORE: GOOD? OR NOT

4/4/2014

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Picture
Posted by John May
April 4, 2014

At first glance, it’s easy to like Common Core.  For one thing, it is sponsored by an American hero, Bill Gates, whose foundation has donated over $400 million to pay academic researchers and social scientists to undertake studies and design programs to enable our schools to turn out graduates with upgraded skills in English, math and science. That seems ok.  And how can you not love Bill Gates? Secondly, the President of the USA is a major booster, having directed hundreds of millions of grant money to induce 90% of the states to join Common Core. So far, six states have declined.

There seems to be a widespread belief that American grade school and high school students compare poorly with an embarrassingly large number of other countries. Student achievement scores can be influenced by population mix and teachers’ labor unions, but a third source might be the education system itself. In response to that challenge, a selection of education experts have devised a program which would unify all of the school systems into one centrally managed structure. We will have, in effect, one board of education for the country instead of one for each of the fifty states.

There are lots of details in the complex program and plenty of substance for debates to come such as how to encourage “critical thinking,” and teachers of 44 states are believed to be preparing for the new regimen. The hierarchy of the national system will be empowered to decree what capabilities students should have, what study materials are acceptable and what test regimens will be applied. One notable feature is the creation of a national database to accumulate evaluation data on each student, each year. Student metadata, if you will. The totality of the program resembles that of Obama Care, in that both are complex structures of imposed rules which can be understood only after having lived with them.  

Growing curiosity about Common Core has begun to create a groundswell of concern regarding our Constitution’s main purpose: containing governmental power by dividing it among three branches and defining the responsibilities of each branch, in hope of reducing the potential for oppression. So how does Common Core threaten freedom?

The primary violation is that the federal government has no mandate or even authority to usurp the most important of state government functions, that being education. Fifty independent state systems make possible a diversified search for good educational results. The tendency of some humans to prefer collectivized, controlled programs and to dislike diversification expresses itself politically in the present confrontation. Two offshoots within the educational diversity we enjoy today are charter schools and home schooling, both of which have been producing good results. But they are anathema to the entrenched interests of the US Department of Education, which provides financial support for those who cooperate, and teacher unions which are threatened with erosion of their captive market and their political influence.     

The movement to collectivize education comes on the heels of the control of medical care and medical insurance. Both are highly complex structures of imposed rules which can be understood only after having lived with them.


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