Brown Budget Targets Employee Pensions

Court-community reviews of Gov. Brown’s new budget are mixed, with state Chief Justice Tani Cantil-Sakauye terming it “encouraging” in a statement but labor advocates worried about plans to increase court employees contributions to their pensions. Meanwhile, along with a $60 million increase from his previous plans, Gov. Brown is framing the budget as a two-year process, meaning some real decisions might come after his Nov. re-election bid.
CCM staff photo

CCM staff photo

 
Discussions are no doubt being held to figure out what the next four weeks will bring. But the Contra Costa Times is among those noting lawmaker support for more courts funding, reporting that “… the chief justice had backing from state legislators, who recently proposed restoring more than $200 million in court funding in the upcoming budget year. Assemblyman Bob Wieckowski, D-Fremont, and the judiciary committee chairman, said Brown’s courts budget is still ‘far short’ of the hundreds of millions of dollars it needs to handle its caseloads and keep courthouses open and running.”
 
Missing from the discussion so far: re-opening any of the closed courts or re-hiring any of the nearly 4,000 court workrs laid off over the past few years.
 

Pensions Next Target For Cutbacks?

Courthouse workers and other public employees should take notice of a Detroit judge’s ruling that public employee pensions are just contracts, not really guarantees at all. If that ruling is upheld on appeal, it means that funds like the California Public Employee Pension System are not as protected as many thought. In effect, the judge is saying that federal laws trump state assurances.
 
The Press-Democrat newspaper in Sonoma County is among those offering analysis of the decision, writing in an editorial that “… to cover soaring retirement costs, which in some places are approaching 50 cents on every payroll dollar, cities and counties in California and across the country have laid off workers and slashed spending on parks, street maintenance and other public services. A handful have filed under Chapter 9 of the federal bankruptcy code; others are weighing the possibility”
 
You already see pensions at issue in the high-profile San Bernardino bankruptcy debate. You also hear whispers that, should public employee pensions be questioned, the issue could be real leverage in the next round of budget negotiations. Read the Press-Democrat editorial, which outlines the issue pretty well, here.