Carl DeMaio Blasts San Diego Mayor for Proposing Law Allowing Abusive Pension Payouts at Taxpayers’ Expense

Carl DeMaio Blasts San Diego Mayor for Proposing Law Allowing Abusive Pension Payouts at Taxpayers’ Expense

San Diego Mayor Todd Gloria Proposes Change in City Pension Law to Permit “Quadruple Dipping” at Taxpayers’ Expense

Former San Diego City Councilman Carl DeMaio blasts the practice as “an outrageous abuse of taxpayer funds”

At a time when the city faces a massive budget shortfall and city politicians are seeking to overturn the 2012 voter-approved pension reform measure, San Diego Mayor Todd Gloria has drafted a special law to grant his Chief Operating Officer the ability to “quadruple dip” at taxpayers’ expense. (See attached Civil Service Commission Documents)

Under current city statutes, a government employee who is drawing a taxpayer-funded pension is prohibited from working more than 720 hour per fiscal year as a taxpayer-funded employee. This limitation is meant to prevent the pension abuse known as “double dipping” whereby a city employee is getting a full taxpayer-funded pension while also drawing a full taxpayer-funded salary. The law is also designed to protect the city’s pension fund tax-exempt compliance with Internal Revenue Code regulations.

Mayor Gloria’s legislative proposal, which was submitted yesterday to the City’s Civil Service Commission, would eliminate any limit or cap on the position of Chief Operating Officer for the City. The proposal seems designed to benefit one singular person: Jay Goldstone.

Such a move would allow Goldstone to earn more than half-a-million dollars annually in salary, benefits and pension payouts. As of 2019 the City of San Diego paid its Chief Operating Officer more than $340,000 in salary and compensation.

State government pension disclosure records show that Goldstone is collecting at least three taxpayer-funded pensions currently – in addition to drawing benefits from 401-k plans also funded in part by taxpayer contributions.

“At a time when San Diegans are unemployed due to the pandemic and the city faces a fiscal crisis, it is outrageous that Mayor Todd Gloria would even propose such an offensive change in city laws,” said former City Councilmember Carl DeMaio. DeMaio authored the 2012 Prop B Pension Reform Initiative to stop pension abuses like “double dipping.”

“Jay Goldstone is a very capable individual, but he voluntarily chose to retire multiple times to draw multiple taxpayer-funded pensions,” said DeMaio. “Todd Gloria needs to withdraw the proposal and commit to ending pension abuses rather than making it easier for city workers to draw these kinds of indefensible payouts at taxpayers’ expense,” DeMaio concluded.

Jay Goldstone’s Current Government Pension Payouts

CALPERS: City of Pasadena Pension
$109,793.52/year (as of 2020)

SDCERS: City of San Diego Pension
$53,715.12/year (as of 2019)

San Mateo County Pension
$19,563.48/year (as of 2018)

https://transparentcalifornia.com/pensions/search/?q=jay+goldstone&a=&y=&s=

Watch: Town Hall with Carl DeMaio on Reform California’s 2021 Strategic Initiatives

Watch: Town Hall with Carl DeMaio on Reform California’s 2021 Strategic Initiatives

Reform California scored many wins in the 2020 election (defeating tax hikes like Prop 15 and local tax hike/bond measures as well as flipping several legislative seats). Our 2021 plans build on those successes!

Among the initiatives discussed in this virtual Town Hall:

• Election Integrity Initiative: Making sure we stop fraudulent practices that weaken the security of our electoral process.
• Defeat Gavin Newsom: Update on the Recall signature drive and our comprehensive efforts to build the case for stopping Gavin Newsom’s extreme agenda and electing a new common-sense Governor ASAP
• Blocking Tax Hikes: As state and local politicians look to fill budget holes, Reform California has prepared a rapid response program to stop any tax hike proposals.
• Electing Reform Leaders: Redistricting is underway statewide and we must ensure fair and reasonable districts are drawn – and we must recruit, train and support solid candidates for office in 2021 and 2022

DeMaio Statement on Efforts to Invalidate Prop B – San Diego Pension Reform Initiative

DeMaio Statement on Efforts to Invalidate Prop B – San Diego Pension Reform Initiative

“The effort by City Hall politicians and government union bosses to invalidate San Diego’s Prop B Pension Reform Initiative is a shameful and corrupt attempt to invalidate the will of the voters.  A super-majority of 65% of San Diego voters approved common-sense Pension Reform in 2012 to save the city from bankruptcy and to end the outrageous gold-plated pension payouts routinely awarded in city government at taxpayers’ expense. 

These same politicians will now try to award massive pension payouts and salary hikes to government bureaucrats at a time when the city is once again facing a financial crisis. 

Let me make it perfectly clear: this fight is far from over.  Armed with the knowledge that city politicians intentionally chose to ignore the will of the voters on pension reform, we will easily defeat ANY tax hike they propose and will redouble our efforts to fight the wasteful spending at City Hall at taxpayers’ expense.”

Citizens who want to join the fight can do so at www.ReformSanDiego.org

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