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Email Megan Email Shayla Browse & Buy: Announcements Apartments & Rentals Automotive Employment Farmer's Market Financial Legals Merchandise for Sale Real Estate for Sale Recreational Call A Pro Page 1 Call A Pro Page 2 MARKETPLACE Scanavino Insurance SUBSCRIBER CENTER Contact the Ledger Dispatch Subscribe Today COMMUNITY LINKS California Highway Patrol Traffic Info Page City of Jackson Jackson Police Department City of Amador Amador County Chamber of Commerce Amador Superior Court City of Plymouth Amador County Caltrans Road Conditions HomeTown Radio City of Ione Amador County Sheriff City of Sutter Creek CLICK GALLERIES April Click Submissions Click - March 25, 2008 Click - March 18, 2008 Click - March 11, 2008 Click — February 19, 2008 Photos Courtesy of John Shepherd More Click Galleries E-mail this article to a friend | Printer friendly format Part of the Problem Thursday, June 25, 2009 - Brent Parsons, Sutter Creek I became part of the problem back in 1999 or so when as a city councilman I bought the assurance of a PERS analysis that Sutter Creek was "super funded". Therefore an agreement to increase the pension benefits that the union was pushing would not affect our contribution rate into the foreseeable future. That foresight turned out to be about two years. PERS investments like most others plunged in 2001 which in effect stripped the cape off of superfund. The current economic disaster threw a chunk of kryptonite into the actuarial and more or less killed it. Increased costs are on the way. Sutter Creek's situation while distressing, is far from unique or the most dire. But in hindsight (which is always better) I see some common flaws in the contract process. 1) The employees are represented by professional negotiators who are paid from union dues to perform. Until this year maintaining the status quo was not really much of a performance. The cities (especially small ones) are represented by a manager and a couple of council people. They are not necessarily unqualified but who wants to run a small work environment where the staff is either unstable (not retained), or disgruntled? Not me. 2) When revenues are tight it's basically human to defer costs of a benefit to the future when things will be better. (The error in that assumption needs no explanation) 3) Local governments as employers, spend a lot more money competing against each other than against the private sector. It takes but one rich or reckless entity to start the proverbial ball rolling. For example: City A lands an auto mall and shares its sales tax increase with its employees. Neighbor City B loses a couple of valued workers to a better paying City A and for fear of losing more and attracting less, matches the compensation of its rich neighbor. (the auto mall closes four years later but that's another story) The employee packages from A and B make it into the comps during the contract negotiations of Cities C and D - you get the idea. In general, I do not consider the public employee to be over paid. However on the benefit side, we have some problems. About the biggest is the golden retirement standard of 3% at 50 with lifetime health for fire and safety. I see this package as unsustainable in a broke state whose citizens not only reject tax increases but live a long time. The best argument I've heard to date in support of the benefit is "You're just jealous." I don't have a come back. COMMENTS ON THIS ARTICLE No comments have been posted in the last 15 days! SEND US YOUR COMMENTS ON THIS ARTICLE * - Required fields Subject: * Message: * Contact Name: * Contact URL: Contact Email: * Write the text from image below to this textbox HOME | NEWS | SPORTS | LIFE | OPINION SPECIAL SECTION | SUBSCRIBER CENTER | BULLETIN | PHOTOS OUR PRIVACY POLICY Powered By: