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<P><STRONG><FONT size=3>"Politically, by introducing the pension-reform
proposals, the governor seeks to take the volatile issue – and one that is
popular with the public – out of the GOP’s playbook."</FONT></STRONG></P></H1>
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<H1 class=articleTitle>Pension tension: Brown’s plan surprised Capitol</H1>
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<P>Few people were more responsible for Jerry Brown’s election than those in
California’s public employee unions, and by last Thursday night many were angry.
</P>
<P>Brown had proposed a litany of changes to the pensions of state and local
government workers, including some that public workers have bitterly
fought, others that as recently as two weeks ago were still in play and still
others that were unclear. </P>
<P>But Brown gave no warning before his announcement. And public employee
groups, among Brown’s most ardent supporters, were not pleased. </P>
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<P>“He just got through three months of negotiations where employees agreed to
roll back their pensions,” said Dave Low who heads Californians for Health Care
and Retirement Security, a coalition of public employee unions representing some
1.5 million government workers.</P>
<P>“For him to roll out another group of pension proposals that weren’t on the
bargaining table and weren’t dealt with – well, that’s problematic for labor,”
Low added. “We did not get a heads up, but we were aware that these issues were
on the table.”</P>
<P>Brown had said during the campaign that if elected, he would have to "do
things that labor doesn't like," including cutting pension benefits for public
employees and asking labor leaders to "put everything on the table" to get
California's bloated budget under control. </P>
<P>During his campaign for governor, he told the Chronicle’s editorial board
that "If you're looking for frugality, I'm your man." </P>
<P><STRONG>When he was governor from 1975 to 1983, he said, "I vetoed the pay
raises for the state employees not once, but twice. I was overridden by 23
Republican votes…I called for the two-tier pension system in 1982," added Brown,
72. "Of course, the next four governors didn't do anything. I'm willing to get
in the battle."</STRONG></P>
<P><STRONG>For Brown, the political calculation of his pension declaration
appeared to be this: Take control of a core Republican issue and use it in his
talking points when he takes his budget proposals on the road starting as soon
as this week. That’s when he’ll push for a special election on taxes to help
cover the state’s $26 billion shortage. </STRONG></P>
<P>It also was seen as a signal that he seeks to re-engage this week with
Republicans on the budget in a final effort before heading to a final option –
which has support from Senate Democrats – of pushing through a budget on a
simple majority vote. On Friday, some in the Capitol said they expected a vote
on at least some budget-linked issues by this week.</P>
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<P><STRONG>But moving toward a Republican position on pensions is raising alarms
among Democrats. </STRONG></P>
<P>“There is a genuine concern over how far the governor is moving to the right
on pensions,” said Steve Maviglio, a spokesman for Low’s coalition and a veteran
Democratic strategist. “I think the governor is under great pressure,” he added.
“There are some changes in the pension system of which we have been very
supportive. But this is a laundry list.”</P>
<P><STRONG>Gov. Brown unveiled a 12-point plan to cut public pension costs that
blocks “spiking,” prohibits the purchase of retirement credits and stops pension
benefits for anyone convicted of a felony related to their job. Many of the
proposals are already contained in legislation carried by Republican
lawmakers.</STRONG></P>
<P>Seven of the proposals were in legislation or already drafted, while the
other five were linchpins for further negotiations. </P>
<P>It is those five, however, that contain the hottest issues for labor, such as
a cap on benefits, a change in the membership of CalPERS’ board, limits on
post-retirement public employment and the creation of a “hybrid” pension plan
that combines defined benefit and defined contribution models. Brown, a
Democrat, said he is moving ahead with pension changes with or without the
backing of Republicans.</P>
<P>Brown said the pension issues were raised during the fruitless budget
negotiations with GOP lawmakers. Those talks foundered, but not on the pension
proposals, according to the governor.</P>
<P>“All 12 of these pension reform measures were presented and discussed in
detail with Republican legislators. Talks broke down, however, over other
issues,” the governor’s office said.</P>
<P><STRONG>Slimming down public pensions has been a top priority of GOP
lawmakers but opposed by Democrats, many of whom enjoy support from government
employee unions.</STRONG></P>
<P><STRONG>Politically, by introducing the pension-reform proposals, the
governor seeks to take the volatile issue – and one that is popular with the
public – out of the GOP’s playbook.</STRONG></P>
<P><STRONG>But observers note that public employee groups already have taken
concessions, that forced-furloughs and pay cuts already have been put into
effect and that the establishment of a two-tier retirement system – in which new
hires have a less generous pension system than their predecessors – is likely to
become a reality.</STRONG></P>
<P>“We certainly in favor of eliminating any pension abuses where they may still
exist. We just completed contract negotiations which increased employee
contributions to their pensions and a lesser formula for future hires,” said
Bruce Blanning of the 13,000-member Professional Engineers in California
Government.</P>
<P>“We’re not clear as to why he didn’t present them in the contract
negotiations that were just completed,” he added.</P></DIV>
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