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.”
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.”
California Supreme Court Negligently Sidesteps Important Issue to Block Meaningful Pension Reform Leaving Taxpayers Facing Billions in Unfunded Pension Debt
In a widely-anticipated ruling on whether lavish and unsustainable pension benefits for state and local government employees can be reformed or reduced, the California Supreme Court punted the entire issue yet again.
“We’re disappointed that the liberal California Supreme Court once again is serving as a barrier to common-sense reform of unsustainable and indefensible gold-plated government pension payouts,” said Carl DeMaio, Chairman of Reform California.
In the narrow ruling that upheld the elimination of the right to purchase service credits to spike pensions, the justices opted to leave the problematic “California Rule” intact that has been a legal barrier to meaningful reform to unsustainable pension benefits. Specifically the Supreme Court ruling said “We have no occasion in this decision to address, let alone to alter, the continued application of the California Rule,” the court said in the decision. The California Rule has been used repeatedly by politicians and government union bosses to block pension reform.
DeMaio is author of the San Diego Pension Reform Initiative that overwhelmingly passed in 2012 to switch city employees from defined benefit pensions to 401(k) defined contribution accounts. DeMaio is working with a bipartisan coalition to enact statewide pension reform.
A recent study by Stanford University suggests that unfunded debt for California state and local pension and retiree healthcare obligations stands at over $1 trillion. The state’s own official estimates using flawed accounting rules puts the liability at nearly half-a-trillion dollars and rising.
In addition to the debt burden placed on taxpayers, an examination of individual pension payouts to state and local government employees shows extreme abuses in the system resulting in six-figure pensions, million-dollar lump-sum payouts, and hundreds of thousands of retired state and local government officials taking in annual pension allowances that exceed their highest base salaries while working for government.
“These government pension abuses must be reformed or California taxpayers will face a future of higher taxes, fewer services, and bankruptcy in our cities and school districts,” DeMaio concluded.
Pattern Emerges of Grossly Misleading Titles Being Placed on Ballot Measures Opposed by State Politicians
In 1911 California voters secured a Constitutional Right to use “Citizen Initiatives” to place items on the ballot to impose reform on their politicians. Today the state politicians have found a way to strip citizens of that precious right through pure deception. Read More