Talks loom on statewide pension reform

Grau said the initiative backers were surprised by the judge’s swift decision. They had a legal opinion saying the initiative was legal and an actuarial report saying there would be no transition costs, backed by a separate actuarial report done for the county.

Among several things influencing the decision of initiative backers not to appeal, Grau said, was being told they could be liable for the opposition’s legal costs if they lost a quick appeal.

The judge said in his ruling that “allowing this measure to be considered on the November ballot would only result in a waste of public resources.” If voters approved, he said, the measure could not be implemented.

A vote for the initiative might have been used as an argument for legislation allowing Ventura County to make the change. But the initiative backers do not plan to seek legislation, assuming like many that union opposition makes that a non-starter.

Former Gov. Arnold Schwarzenegger found that union political clout goes beyond Democrats. After a record 100-day budget holdout in 2010, he got legislation requiring most state workers to pay more for their pensions.

In his weekly radio address, Schwarzenegger said minority Republicans refused to support the required two-thirds vote for the bill. He said Republicans “sold out” to the prison guard union for campaign contributions, naming several legislators.

Schwarzenegger said the Republican blockade was lifted by getting the signature of Secretary of State Debra Bowen at 3 a.m. at her home, clearing the way for a special legislative session and passage of the bill by Democrats on a majority vote.

One of the statewide initiative issues facing local pension reformers, in addition to finding a consensus plan and funding, is the view that the courts have said the pensions of current workers are a “vested right” that cannot be cut, unless offset by a new benefit.