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Will California Become America's First Failed State?

Reading Paul Harris' colum in Sunday's Observer, I found myself yelling at him. He might have written an epic Sunday newspaper-worthy story, but he avoided and omitted California's real problem: Public pensions. And Harris forgot to thank Gray Davis and the Democrats for the mess we find ourselves in.
 
Quick to blame Arnold Schwarzenegger, he's becoming a fast fall guy and convenient deflection for state liberals.  But stop and think about where California would be today is Gray Davis had continued as Governor, and public employee unions had no opposition. Imagine if Cruz Bustamante had won... ugh.
 
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California
has a special place in the American psyche. It is the Golden State: a playground of the rich and famous with perfect weather. It symbolises a lifestyle of sunshine, swimming pools and the Hollywood dream factory.
But the state that was once held up as the epitome of the boundless opportunities of America has collapsed. From its politics to its economy to its environment and way of life, California is like a patient on life support. At the start of summer the state government was so deeply in debt that it began to issue IOUs instead of wages. Its unemployment rate has soared to more than 12%, the highest figure in 70 years. Desperate to pay off a crippling budget deficit, California is slashing spending in education and healthcare, laying off vast numbers of workers and forcing others to take unpaid leave. In a state made up of sprawling suburbs the collapse of the housing bubble has impoverished millions and kicked tens of thousands of families out of their homes. Its political system is locked in paralysis and the two-term rule of former movie star Arnold Schwarzenegger is seen as a disaster – his approval ratings having sunk to levels that would make George W Bush blush. The crisis is so deep that Professor Kevin Starr, who has written an acclaimed history of the state, recently declared: "California is on the verge of becoming the first failed state in America."
 
read the rest of the story  HERE
 
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Firefighters Are Behaving Like Hoodlums, Not Heroes

Police Officers, Fire Fighters and members of the Military are often called brave and valiant Heroes. And they should be; much of what they do is dangerous and requires a degree of courage, selflessness and valor.

They are also, public (government) employees.

Police are at-risk every moment of every day they are on-the-job; from the cop on the beat to the patrol officer, every person they speak to, every car they pull over is a potential risk to their life. They serve voluntarily and selflessly, putting themselves in harms way every day.

Military personnel who serve in war-torn countries serve voluntarily and selflessly, and often give their lives in the course of defending democracy.  Stateside military personnel tirelessly train in preparation for the day they will be sent into battle.

Fire fighters are faced with treacherous work conditions when fighting fire. Of particular note are the California Department of Forestry (CDF) - fire fighters, who work tirelessly trying to prevent wild fires in our summertime parched state.

Missing from the discussion of selfless, tireless public safety workers, is the union representing the City of Sacramento Fire Department who of late, have been behaving more like hoodlums, than heroes.

Months ago when the City first started talking about the need for sizeable budget cuts due to a record budget deficit, the Sacramento Police Officers Association union (SPOA) almost immediately stepped up and agreed to make their $6.4 million budget work – cuts, salary freezes and all. The Fire Fighters union, Local 522 (an AFL-CIO union), instead turned on the machismo, did a few chest bumps, and began a months-long public tantrum played out dramatically in the media, by refusing to live with and manage their $5 million budget.

Remember the City of Vallejo’s recent Bankruptcy? It was their Fire Department that forced the city into the financial dire straights that led to insolvency, due to record and unsustainable salaries, benefits and pensions. This is a common theme in the state of California, and a severe lesson the City of Sacramento seems unwilling to experience.

The Sacramento Police Department and the SPOA actively educated members in order to get input and involvement on the inevitable budget problems the city was facing. Already down by 104 sworn staff officers since 2007, the Sacramento Police Department decided they could not afford any more police officer cuts. SPOA agreed across the board to accept the City’s budget, freeze salaries as of the last budget, and take cuts where deemed necessary in order to save jobs.

Contrast this with Local 522, the Fire Department union, and even city employee union Local 39: both unions propose sacrificing only lower paid workers, while insisting on raises for the older, more highly-paid workers. Many Sacramento residents are critical of firefighters for being hypocritical for claiming union “solidarity” with their firefighting “brothers” while rejecting a deal that will lead to the City laying off 50 of their “brothers.” Fire Fighters are behaving like thuggish teamsters, forgetting that they are city employees, and serve voluntarily.

Additionally, Fire Fighters have come under intense scrutiny for excessively high overtime abuse and ongoing abuse with sick-leave usage. With city fire fighters largely on-call while on duty, their antics are becoming intolerable.

What happened to the days when fire fighters called to a medical emergency showed up as a first-responder, in a two-person team driving a light-duty truck? The fire fighters’ demand for 4-man teams on every truck for every call, is unrealistic and absurd, and demonstrative of their refusal to prioritize staffing levels based on the nature of the emergency calls. Current staffing levels and call response tactics are purely to justify their pay, pensions and big budget.

This from the same local fire fighters union who recently threatened that they were considering sponsoring a ballot initiative that would seek to ban the City Council from ever reducing firefighters’ pension benefits without a vote of the public. 

This is all behavior inherent to Chicago-style unions, not most individual fire fighters. However, the fire fighters who consider themselves union members first and only secondarily fire fighters, made their voices clear at recent city council meetings.

When was the last time police or military personnel threatened using thuggish teamster tactics because they weren’t getting guaranteed pay and pension increases? Military and police personnel respect integrity and distinguished public service.

 Fire Fighters, police and military personnel choose their career paths voluntarily. Society honors those who choose careers that require courage and valor in the face of danger. But when Sacramento City Fire Fighters threaten tyranny while already receiving abundant wages, rich benefits and inordinately large pensions, while most of the rest of the city’s employers are laying off employees and cutting wages and salaries, we know that the union running the show has reached beyond usefulness and is moving into foolishness. Thus is the inherent problem with labor unions representing public employees.

Public employees work for the citizenry, but appear to work for the supremacy of the city, county or state. The law and the government are intended to serve American freedom and self-determinism — not the other way around. 

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Union or Non-Union Grass?

In recent headlines in The Sacramento Bee, reporter Ryan Lyllis wrote how the city's budget shortfall was heading right for the parks - the bottom line, that is. City budgeteers are proposing a 35% budget cut for the department of Parks... but not for the Recreation side of the department. http://www.sacbee.com/government/story/1844020.html
 
The neighborhood in which I live surrounds Sacramento's largest regional park, William Land Park, and the neighbors are spitting mad. There has been no talk of cutting the excessive staff in the city - only parks maintenance and services.
 
Within the Department of Parks and Recreation, the parks budget is pretty straightforward and typical: maintenance, repairs, projects and restorations. The Recreation side of the department however, is bloated with lots of interesting departments:  pools & aquatics, senior enrichment classes, a travel agency, teen "health" centers, neighborhood block party planners, a skate park, day care centers, and even 17 community centers (all of which require staffing).
 
Last week, 65 people from my neighborhood attended the City Council meeting and present an optional budget proposal to the council, instead of allowing the parks to fall into blight. Not just for our neighborhood, but for every Sacramento neighborhood where a park is located. We testified about what happens to parks when the maintenance ceases and bathrooms close: public urination (and worse), crime, drugs, gangs take over. Additionally, the city would have to spend an inordinate amount of money to get the parks back into shape once the economy recovers.
 
We proposed privatizing park maintenance, saving the city at least 60% of the existing cost due to the union contracts under which city parks employees currently work.
 
With a city council of all Democrats save one, it is the unions who put each council member into office. Consequently, no one will even broach the discussion of cutting union jobs... or pay... or benefits... muchless privatizing any city services.
 
Last night the City Council met again (here is the agenda and video link
05/26/09 Council Meeting May 26, 2009 01h 32m Agenda Video Open Video Only in Windows Media Player
 
skip to Public Testimony Parks for testimony.
 
In the meeting, it was brought up that the city found some additional money for Parks and Rec. When asked where and how, the City Finance Director stated that there are several lighting and landscaping assessment districts. They did an audit and "added parcels." They will use this money to "backfill the loss of general funds."
 
The city just "added parcels" to an existing assessment district - wait until the property owners find out. These people will not cut a thing out of the budget as long as it is tied to union jobs.
 
Meanwhile, our park is looking really neglected and blighted in some areas, but not one city parks department employee has been let go. Where are they working? Who ordered them to stop mowing and maintaining the park? My guess - One of their bloated union middle managers.
 
The funny thing is that adjacent to our park is the Land Park Golf course - beautifully maintained... privately. We refer to this as "union grass" and "non-union grass."
 
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More City Bankruptcies Ahead In California?

Sacramento City and County governments desperately need to get out from under the union contracts that are killing them. Is the only way at this point - since none of our elected officials will ever attempt to negotiate with unions - Chapter 9 bankruptcy? Will we see candidates run on Bankruptcy paltforms in the future? Should they?
 
In 1994, Orange County became the largest American municipality to file for Bankruptcy. The financial difficulties leading to the bankruptcy were the direct result of an enormous gamble with public funds taken by a county treasurer who was seriously under-qualified to deal in the kinds of investments he chose (PPIC). When Government Fails: The Orange County Bankruptcy 
 
The city of Vallejo filed for Chapter 9 in 2008. Vallejo’s fiscal woes resulted from promises to pay its employees’ salaries and retirement benefits that far exceeded its means. Does this sound familiar? read more: http://www.muninetguide.com/articles/Vallejo-Bankruptcy-Filing-Garner-282.php
 
As expected, the Unions contested Vallejo's bankruptcy filing. The unions are challenging a number of aspects to the Vallejo petition. First, they claim that Vallejo is not actually insolvent within the meaning of the Bankruptcy Code, contending it has plenty of cash and the ability to strengthen the General Fund’s cash position and that it could significantly reduce expenditures to more accurately reflect its financial difficulties.
Second, they are contending that Vallejo’s petition is not based on the desire to effect a plan of adjustment. Next, they content that Vallejo did not satisfy the statutory requirements for negotiation with creditors prior to filing for bankruptcy. Finally, they contend that Vallejo’s petition is not filed in good faith. The Court will have to satisfy itself that the evidence demonstrates these requirements were met.
In the end, Vallejo's bankruptcy filing was approved by the Bankruptcy Court.  
 
Is Sacramento City and/or County heading for bankruptcy? Staggering statistics show State and local public employees comprise approximately 12 percent of the U.S. workforce and have an estimated $800 billion or more of unfunded pension liabilities (not counting other post-employment benefits). By comparison, employees in the private or corporate sector make up about 78 percent of the U.S. workforce with an estimated $450 billion of unfunded liabilities.
 
California unions have responded to the City of Vallejo’s bankruptcy filing with the introduction of AB 155 (Mendoza). Under AB 155, a municipality would have to obtain approval from the California Debt and Investment Advisory Commission before filing for bankruptcy. The commission consists of the state treasurer, the Governor or the Director of Finance, the State Controller, two local government finance officials, two Assembly Members, and two Senators. AB 155 is supported by a number of unions, including the California Professional Firefighters and CDF Firefighters Local 2881, both of whom are co-sponsoring the bill. The California Association of Counties and the League of Cities are leading the opposition.

Obviously, the unions are worried that more municipalities will follow Vallejo into bankruptcy in an effort to void labor contracts. AB 155 goes a long way towards preventing that. By requiring approval by the California Debt and Investment Advisory Commission, unions hope to prevent municipalities from filing for bankruptcy altogether or at least delay the process long enough to give them more leverage. 
(From the California PERB Blog)  http://caperb.blogspot.com/2009/04/ab-155-unions-respond-to-vallejos.html
 
California as a state, is in crisis. The unions are calling the shots and now trying to prevent other California cities from filing for bankruptcy. 
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