Let’s be realistic. No matter how dire the situation gets, there’s no way our brain-dead state legislature will ever find their way out of California’s massive black hole of public employee pensions. Most of our representatives are too entrenched, too well-lobbied and too gutless to take effective action against the powerful public employee unions.
Thankfully someone is going to put real reform out for a vote to the people. Our Friends over at the California Foundation for Fiscal Responsibility have filed two pension reform initiatives with the state Attorney General’s office on Thursday, which will be put on the 2010 California ballot after the foundation gathers enough signatures to qualify.

The initiatives would apply a benefits cap to the benefit plans offered to all new state, local government, school district, university and special district employees beginning July 1, 2011. Savings to taxpayers are expected to reach over 500 billion dollars over the next 30 years if adopted.
The plan saves money by limiting guaranteed benefits for government works to 75% of pay and requiring employees to wait until they reach MediCare eligibility age before retiree health benefits kick in.
California will never escape the budget crisis and its massive unfunded pension liabilities without enacting legislation built on solid fiscal principles. CFFR spells out the new rules in “The 10 Commandments”
- Honor all pension contracts
- Death and disability benefits shall not be changed
- Pension benefits must be fair and adequate
- Pension benefits must be guaranteed
- Pension spiking abuse must be discouraged
- Future generations should not pay retirement costs for today’s workers
- Retiree health funds must not be diverted to any other purpose
- Retirement benefit costs must be sustainable
- Local agency voters shall retain the right to change benefits
- Bankruptcies must be avoided
Democrat Bill Lockyer has admitted that the state will go bankrupt without serious changes to the pension system. Will angry voters support reform in 2010? I think so.