California Supreme Court Ruling on Pension Reform Falls Short

California Supreme Court Ruling on Pension Reform Falls Short

Today the California Supreme Court issued a ruling that upholds the modest PEPRA pension reform law enacted by former Governor Jerry Brown.  While the ruling may seem like a win for taxpayers, Reform California Chairman Carl DeMaio, who also authored San Diego’s 2012 landmark pension reform initiative, says the ruling is quite narrow and provides little legal relief for taxpayers.

DeMaio issued the following statement in response to the ruling:

“By crafting a narrow ruling that sidesteps the fundamental flaws with the notorious California Rule, the California Supreme Court seems hell bent on forcing California taxpayers to bear the excessive costs of unsustainable pension payouts for state and local government employees.  Because the California Rule remains untouched in this decision, taxpayers will continue to face legal hurdles that could prevent them from modifying or reforming excessive and unsustainable government pension payouts.  The result will be higher taxes, less services, and potential insolvency in California’s cash-strapped state and local government pension systems.”

With today’s ruling the California Supreme Court has upheld PEPRA reforms such as banning the addition of unused sick time, bonus pays and some specialty pay to pension calculations – all common tools used by government workers to spike pensions.

A full copy of the ruling can be accessed here:

https://www.courts.ca.gov/opinions/documents/S247095.PDF

Carl DeMaio Launches Campaign to Protect Prop 13 and Stop Property Tax Hikes

Carl DeMaio Launches Campaign to Protect Prop 13 and Stop Property Tax Hikes

This is it – politicians in Sacramento have launched their all-out assault to repeal Prop 13 and raise taxes this November. Carl DeMaio, Chairman of Reform California, has launched the resistance to save and protect Prop 13 and organized a statewide virtual town hall where he outlined the campaign to protect Prop 13 and gave instructions on how supporters can join in the efforts in their areas.

Carl DeMaio Holds Town Hall On Risks Facing Small Businesses from AB5 & PAGA

Carl DeMaio Holds Town Hall On Risks Facing Small Businesses from AB5 & PAGA

Reform California Chairman Carl DeMaio held a town hall with the California Business and Industrial Alliance where they warning Californians about costly new mandates stemming from AB5 and PAGA that are being implemented by Sacramento politicians.

The negative impacts of Covid 19 and new enforcement actions on AB5 and PAGA are destroying jobs. Lost wages may never be recovered and businesses may not come back from this. The Town Hall will equip you with the facts you need to know to keep your business safe!

Reform California Supports Lawsuit to Impose Integrity on California Voting

Reform California Supports Lawsuit to Impose Integrity on California Voting

Reform California is announcing its support for a lawsuit brought by the Long Beach Reform Coalition alleging that the new approach to voting in California violates state and federal law. 

The lawsuit challenges the outcome of a tax increase measure in Long Beach (Measure A, March 2020 Primary) and contends that Los Angeles County failed to maintain integrity in the voting process when it switched to a new system of mail-in ballots and centralized Voting Centers. 

Reform California Chairman Carl DeMaio convened a Town Hall explaining the basis of the lawsuit and what the next steps are.

Governor’s Promised Pay Cut Won’t Happen, Simply a PR Stunt to Pave Way for Tax Increases

Governor’s Promised Pay Cut Won’t Happen, Simply a PR Stunt to Pave Way for Tax Increases

“Governor Needs to Propose Fundamental Budget Reforms to Prevent Insolvency”

In response to Governor Gavin Newsom announcing he intends to seek a pay cut for state government employees with his revised budget for the coming fiscal year, Reform California Chairman Carl DeMaio offers the following response:

“Governor Gavin Newsom’s call for a pay cut is just a PR stunt to convince voters that they should support massive tax hikes and taxpayer-funded bailouts for all the other reckless spending Newsom and Sacramento politicians are engaging in. At best, the pay cut will happen only on paper and state and local government employees will still receive compensation packages far in excess of what is justified in the local labor market. If Newsom were serious about fixing California’s finances, he would stop outrageous spending on things like welfare for illegal immigrants, pension spiking in state and local government, and the High-Speed Rail Train.”

DeMaio is a nationally-recognized government management and budget expert who chaired the California Citizens’ Budget Project that helped expose the financial crisis during Governor Gray Davis’ Administration and as a city councilmember helped save the City of San Diego from bankruptcy by reforming its budget and pension system in 2012.

Poll shows voters oppose Governor Newsom’s coronavirus policies

Poll shows voters oppose Governor Newsom’s coronavirus policies

Reform California Chairman Carl DeMaio was on KUSI this morning to discuss how the majority of Californians are opposed to Gavin Newsom’s coronavirus policies. Our statewide poll shows that 72% of Californians want the state’s economy reopened by now and believe there is a better way to re-open the state than the statewide all-or-nothing lockdown approach Governor Gavin Newsom is pursuing.

AB5: Now is the Time to Help, Not Hurt Small Businesses in California

AB5: Now is the Time to Help, Not Hurt Small Businesses in California

By Carl DeMaio

If Governor Gavin Newsom and California Democrats really wanted to help struggling small businesses and millions of unemployed California workers they would immediately suspend or repeal a variety of damaging and costly taxes, mandates and regulations that have been choking the California economy for years.   

At the top of the list of relief should be the repeal of AB5.

Last year Governor Newsom and the Democrats passed AB5 into law to ban the use of independent contractors in California and impose stiff penalties on small businesses for hiring independent contractors. AB5 is an outrageous attempt to deprive Californians of the freedom to work, destroy the once-booming gig economy, and boost government tax revenues by forcing independent contractors and their clients to pay higher employment taxes. 

Even before the Coronavirus, AB5 had devastated hundreds of thousands of workers already – and now AB5 is one of the biggest obstacles for unemployed Californians seeking what little work is available.

Gov. Newsom has the power to suspend AB5 completely so small businesses and independent contractors can find work during these challenging times. I want to commend Assemblyman Kevin Kiley for leading the fight to ask the Governor to do this, but Newsom has refused to do it.

What’s worse, Gov. Newsom is weaponizing the Coronavirus federal bailout program to enforce AB5 and punish small businesses and independent contractors.

President Trump wisely included independent contractors in the unemployment insurance provisions of the federal Coronavirus bailout program since many have lost their clients during the shutdown.

Unfortunately, Gov. Newsom has instructed the state’s Unemployment Insurance Program to use the federal bailout funds to collect data and evidence from independent contractors when they seek the unemployment benefits to build enforcement cases against small businesses that used independent contractors after January 1, when AB5 went into effect. 

I have heard from many independent contractors who fear if they apply for federal unemployment benefits, they will get their small business clients in trouble under AB5. 

Punishing struggling small businesses and independent contractors is NOT what we need during this economic crisis. 

If California politicians are serious about helping ease the economic impact of Coronavirus they need to start by repealing or suspending AB5.

Concerned taxpayers who agree that California politicians should suspend or repeal AB 5 can help send a message today by signing this petition: DefendFreedomtoWork.org

Carl DeMaio is Chairman of Reform California.

DeMaio Reaction to CA State Appeals Court Case on Pension Reform

DeMaio Reaction to CA State Appeals Court Case on Pension Reform

Today the Fourth District Court of Appeals issued an order to financially compensate 4000 city employees in light of the voters passing Proposition B in 2012 – the San Diego Pension Reform Initiative. Despite this decision, Prop B author Carl DeMaio issues the following statement:

“Prop B Pension Reform is a Citizens Initiative that is protected under the California Constitution, and we continue to assert all of the legal remedies afforded to prevent it from being illegally overturned.”

DeMaio Reaction to US Supreme Court Case on Pension Reform

DeMaio Reaction to US Supreme Court Case on Pension Reform

Today the US Supreme Court opted to not hear a case filed by the City of San Diego regarding First Amendment rights of former Mayor Jerry Sanders to support Prop B in 2012 – the San Diego Pension Reform Initiative. In light of the decision, Prop B author Carl DeMaio issues the following statement:
“The Supreme Court accepts only 100-150 cases of over 7000 it receives each year, so while we are disappointed, we are not too surprised that the US Supreme Court did not weigh in. Prop B Pension Reform is a Citizens Initiative that is protected under the California Constitution and we continue to assert all of the legal remedies afforded to prevent it from being illegally overturned.”