Public Sector Unions Curbed in California

This has been a very bad year for public employee unions. Scott Walker's victory Tuesday was the knockout, to be sure; however, it is easy to forget that the Wisconsin unions couldn't even get their candidate nominated by the Democrats.

Public sector unions suffered also suffered defeats in two cities in California Tuesday. [hat tip to David Harsanyi] On the ballot in San Diego and San Jose were propositions that limit public sector pensions, bringing them in line with private sector pensions, and allowing a freeze on benefit increases during periods of fiscal emergency. The measures passed in both places, by two-thirds and seventy percent margins respectively. It is easy to explain why San Diego and San Jose did so. From the AP:

Supporters in both cities relied on a simple pitch: Benefits beyond what most voters receive working at private companies are draining city coffers.

San Diego's independent budget analyst estimated savings of nearly $1 billion over 30 years. Reed estimates San Jose's plan will save up to $180 million a year.

San Diego's payments to the city's retirement fund soared from $43 million in 1999 to $231.2 million this year, equal to 20 percent of the city's general fund budget, which pays for day-to-day operations.

As the pension payments grew, San Diego's 1.3 million residents saw roads deteriorate and libraries cut hours. For a while, some fire stations had to share engines and trucks. The city has cut its workforce 14 percent since 2005.

San Jose's pension payments jumped from $73 million in 2001 to $245 million this year, equal to 27 percent of its general fund budget. Voters there approved construction bonds at the beginning of the last decade, but four new libraries and a police station have never opened because the city cannot afford to operate them. The city of 960,000 cut its workforce 27 percent over the last 10 years.

San Diego Councilman Carl DeMaio staked his mayoral bid on the pension measure, using fiery rhetoric to criticize public employee unions. He advanced to a November runoff in Tuesday's election.

The problem was elementary. Public sector benefits were putting the squeezing on all other municipal spending. That was resulting not only in a deterioration of physical infrastructure and services. It was also costing jobs. The public workforce was cut in San Diego. Unopened libraries and police stations in San Jose, besides being an enormous waste of money, are empty of public employees.

Any doubt that the matter might have been resolved by negotiation with responsible unions may be resolved by this quote from the Mercury News:

Yolanda Cruz, president of the city's largest union, called the measure "an unfortunate way to spend taxpayer money fighting it in court because we will definitely take it there. Taxpayer money would be better used getting services back."

I am inclined to agree with Walter Russell Mead that the blue state model (buying the support of public unions by lavishly dishing out benefits during boom times that can't be cut when the boom is over) is a model with a great future behind it. It will end either by political means, as seems to be happening in San Diego, San Jose, and Wisconsin, or it will end as a result of very painful economic events. One would be better than the other.

Comments

[larry kurtz]

Unions are being targeted in Montana political races. Montana, Wyoming, and the other western red states lead the country in workplace deaths:

http://www.kxlh.com/news/union-issue-ads-hit-montana-airwaves/

[Rufat]

My wife sent me your blog link, we live in Little Italy, and are always wonenridg why more of San Diego isn't like this neighborhood.. and why is our public transportation so bad..You've got great writing! It's rare to find a blog that I agree with, hope you keep it going!