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July 2009
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George Rebane

Extra The government employee compensation and pension crisis is beginning to come up on everyone’s radar.  Well, perhaps everyone except some very closeted socialists here in our neck of the woods.  I am always amazed when I read and sometimes participate in the comment thread of an article either published on a blog or a newspaper’s website.  The comment thread of my 18jul09 editorial column – ‘Dear Government Employees’ – in The Union lived up to expectations. (also on RR here)

Many of the commenters had trouble keeping track of the editorial’s theme that made a fairly simple and widely acknowledged point.  Government employees have become an unbearable cost burden to governments at all levels.  The way that their salaries, pensions, and other benefits are compensated is no longer tenable, and that financial house of cards is now about to collapse.

Some members of the local readership however demonstrated that 1) they were unaware of this critical issue, and 2) that anyone introducing it must needs be an unsavory, selfish, and greedy kind of person who has no appreciation of the role of government in civil society.  These folks also seem to have a lively imagination, seeing attacks on their cherished collectivist beliefs where there are none.  To them it really doesn’t matter, a strong counter-attack is always the best defense, even against an imagined assault.


But the biggest surprise was that there still exist people who read newspapers (and presumably consume other media) and who are totally ignorant of what’s happening in not only the country, but the entire world, as governments try to contain costs.  And, of course, the major costs are always those paid to legions of government workers, the necessity of whose jobs are revealed when they must be either fired or cut back.  Apparently I was the one who brought that little piece of news to them.  And not having heard it before, they naturally thought I had fabricated it all from a fevered and discredited ideology.  So they were somewhat disturbed that all these fine government workers stood accused of being a material part of the current crisis.

I am sure that we in Nevada County are not alone in harboring such cohorts of the un-anointed.  They no doubt exist all over the country, and must feel equally surprised and angry as the gory details of the complex and secretive compensation packages begin to be disclosed.  Because such revelations would put major dents into the sheltered belief systems of anyone with even a smidgeon of critical thinking skills.

RR will continue to post on the details of government employee compensation packages as they become available.  In the interval, were we to welcome some of these irritable and irritated innocents to these pages, I offer the following links which should convince them that I am merely a messenger whose message about the government employee problem was, perhaps, more succinct, clear, and focused.

Here from the 4jul09 Contra Costa Times.

Here from the 6jul09 WSJ.

Here from the 8jul09 Sacramento Bee.

Here from the 9jul09 Times-Herald.

Here and here from the 9jul09 Governing.com.

Here is continuous coverage from PensionWatch.com

Here from the 17jul09 San Francisco Chronicle. 

And here again from today’s (20jul09) WSJ.

A perusal of these reports should inform even the most ardent left-winger of the scope of the government employee compensation problem.  Perhaps then they may bring their wits to bear, without dilution, on this specific issue.  And hopefully some will communicate their newfound concerns to their Democratic electeds who now dominate most legislatures in the land.

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11 responses to “Now Everyone is Starting to Talk About It”

  1. Russ Steele Avatar

    George, you can add this article in the San Francisco Sentinel to your list of articles exposing problems with the rising cost of government pensions in San Francisco.
    A San Francisco Civil Grand Jury says officials have looked the other way as payouts from the city’s retirement fund have risen at an alarming rate. Now, there are accusations of something called “pension-spiking” for police and firefighters.
    “I think it’s time now to get some public exposure and get some transparency in the retirement system,” says Craig Weber, who was the grand jury chairman.
    The report says this year the city will contribute $178 million to the fund. Next year, the city will put in $338 million — a whopping 190 percent increase — and it has been climbing like that for more than a decade.

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  2. George Rebane Avatar
    George Rebane

    Thanks Russ. And I also overlooked the major article in the 9jul09 The Economist on “the great public sector pension ripoff”. Hard to believe that anyone on the left would want to raise their head against this tsunami of revelations. Now if we could only get a major liberal politician with a national reputation to stand up for these obscene compensation packages, and join the local Pauls of Peter/Paul fame. Where’s Pelosi now that we need her?

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  3. DaveC Avatar
    DaveC

    Here are some tried and true ways state employees can “spike” their earnings to increase their retirement stipend. The key is to increase W2 earnings from the state during the LAST YEAR prior to retirement. 1099’s and reimbursement of employee expenses don’t count.
    1. Accept a temporary or permanent promotion.
    2. After spending all those years trying to get on the day shift, change to another shift which pays the best shift pay differential.
    3. Work any all available overtime.
    4. Work in a position requiring 7 day coverage, including mandatory holiday work which pays holiday pay plus overtime.
    5. Law enforcement should move to a traffic patrol division on a shift other than day shift. Any moving violations challenged by the alleged violator in court will require the ticketing officer to attend court on day shift and on overtime.
    6. Law enforcement and fire employees should seek a position paying hazardous duty pay. i.e. aircraft observer, hazardous materials cleanup, motorcycle, SWAT, sheriff marine etc.
    7. Take no vacation during the final year. Ask for pay in lieu of time off and be sure to collect pay for accrued vacation for the following year.
    Each of the above are perfectly legal and authorized by the state legislature and signed off by the union bosses.
    Oh yes, to save a few hundred bucks, tell your state employer to stop making automatic payroll deductions for union dues 6 months prior to retiring. It will take the union about that long to notice the dues are missing and by that time you’ll be long gone.
    I learned the above for a retired SFPD cop.

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  4. George Rebane Avatar
    George Rebane

    So noted Dave. This corroborates what I have been told by other sources. Thanks.

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  5. Ralph Short Avatar

    George, as a guy on the east coast I can tell you we have similar issues. This is a great blog, btw and hopefully you and Russ are shedding some light on the collectivist BS that passes for intellectual thought processes with most of the media.
    Incidentally, years ago here on the east coast, the mafia was big in controlling or influencing much of the public sector employees. Oh, for the good old days. Hey, at least they were efficient.

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  6. Dixon Cruickshank Avatar
    Dixon Cruickshank

    I knew this was going to be good LOL
    If you follow the Stimulous spending it is also all going to local Gov for “shovel ready” projects – not yours – just say’in, but so they can keep the workers doing something when project budget cuts would have left them nothing to do. I will add they really don’t do much in any case because they can’t get fired no matter how bad they are and their isn’t any incentive to really get anything done.
    By the way these are the 150,000 jobs the Pres quote as saving, otherwise they may have been layed off, although the locals haven’t gotten any money they keep them on – hoping

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  7. Dixon Cruickshank Avatar
    Dixon Cruickshank

    George, I did go and read all the comments – I knew this was going to good – I have applied to make a comment – to sasquatch or whatever -waiting on my email
    I also would like if possible to change my screen name to my interenet persona – not sure it is possible on your and Russ’s blog???? I also have to say this is fun, I have been unable to post to most blogs, real climate and climate depot and such- for some reason, since I don’t have some of the fancy type accounts I guess – but you 2 guys are the bomb.
    Califorina is the model they are seeking in DC, obviously with Pelosi and Boxer having such power and you folks are just ahead of the game so I can see it happening out there – I think US Gov has grown 30% since the election, not sure excatly how accurate but can’t be far off
    just for fun look in the front of the phone book under State listings – try and figure out what they might do, might even call, they probably can’t tell you either LOL.

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  8. Dixon Cruickshank Avatar
    Dixon Cruickshank

    If you back to the comments I’m sure you can figure out who I am LOL

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  9. George Rebane Avatar
    George Rebane

    Dixon, I don’t think I can control your nom de plume, but why change it? You have such a great name anyway, always reminds me of something between Charles Dickens and one of Bill Buckley’s spy novels. And I think you guys back east are having too much fun watching us running out of feet to shoot at. You just wait, Obama is going to spread this misery nationwide.

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  10. Russ Steele Avatar

    California’s huge government pension fund is expected to report today a whopping annual loss of an estimated $56.8 billion, almost a quarter of its investment portfolio.
    The loss at the California Public Employees’ Retirement System for the fiscal year ended June 30 is the second in a row for the country’s largest fund. A year ago, CalPERS reported an $8.5-billion loss, as the severe recession began to take hold.
    The tremendous drop in value is expected to have a direct effect on the amount of money that the state and about 2,000 local governments and school districts must contribute in coming years to pay for pensions and healthcare for 1.6 million government workers, retirees and their families.
    As income from the pension investments fall, the governments would have to make up the difference to meet the state’s pension and healthcare obligations.

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  11. Mikey MCD Avatar

    This crisis is well documented at http://www.pensiontsunami.com/ (UPDATED CONSTANTLY)
    Thanks for you efforts George (and Russ).
    Nervous- taxpayers or employees will end of eating this crisis, both sides have reason for anxiety.

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