Wednesday, June 22, 2011

Public Unions Take On Boss to Win Big Pensions

Costa Mesa, population 110,000, is California in miniature. For years, public employee unions across the state have often used their influence — sometimes behind the scenes but occasionally with public, hardball campaigns — to push for improved worker pay and benefits. They have exercised power beyond their numbers by donating money to lawmakers, burnishing candidates’ credentials with endorsements and supplying volunteers during elections. - NYT

Lawmakers in both political parties have often acceded to unions’ requests to avoid political confrontations or to curry favor. They have pushed difficult choices into the future.

But now, with the expenses of past promises coming due, the cost of deferred decision-making is mounting. California alone needs to begin devoting an additional $28 billion a year to state and local public pensions to remedy an existing shortfall, according to one nonpartisan study — and nationwide, estimates of such deficits reach into the trillions over the next few decades.

“We had no idea what we were doing,” said Tony Oliveira, who as a supervisor in Kings County, in central California, voted to increase employees’ benefits, and now is on the board of the state’s enormous pension fund. “This was probably the worst public policy decision in the state’s history. But everyone kept saying there was plenty of money. And no one wants to be responsible if all the cops quit to get paid more in the next town.”