Calif. voters weigh in on gov't benefits

SAN DIEGO -- As state and local governments across the country struggle with ballooning pension obligations, voters in two California cities cast ballots yesterday on sweeping measures to curb retirement benefits for government workers.

Ballot measures in San Diego and San Jose are being closely watched well beyond California. The propositions are unusual, targeting not only new hires but also current employees.

Supporters have a straightforward pitch: Pensions for city workers are unaffordable and more generous than many private companies offer, forcing libraries to slash hours and potholes to go unfilled.

"We believe people are tired of having services cut back because of big pensions," said San Diego Mayor Jerry Sanders, a Republican who is being forced from office by term limits.

Shrinking tax revenues in the recession are also responsible for service cuts, but pensions are an easy target. San Diego's payments to its retirement fund soared from $43 million in 1999 to $231.2 million this year, equal to 20 percent of the general budget for day-to-day operations.

San Diego's 1.3 million residents saw roads deteriorate and libraries and recreation centers cut hours. For a while, some fire stations had to share engines and trucks. The city has cut its workforce 14 percent to 10,100 employees since Sanders took office in 2005.

San Jose's pension payments jumped from $73 million in 2001 to $245 million this year, or 27 percent of its general fund budget. Voters approved construction bonds at the start of the last decade, but four new libraries and a police station have never opened because the city can't afford to operate them. The city of 960,000 cut its workforce 27 percent to 5,400 in the last 10 years.

Opponents, led by public employee unions, say the measures deprive workers of benefits they were counting on. Some workers decided against potentially more lucrative jobs, figuring their retirement was relatively safe.

"This is part of a broader effort to attack workers and to make their lives miserable," San Diego Councilman Todd Gloria said during a debate.

San Diego's Proposition B imposes a six-year freeze on pay levels used to determine pension benefits unless the City Council votes to override it. It puts new hires, except for police officers, into 401(k)-style plans. Under San Jose's Measure B, current workers would pay up to 16 percent of salaries to keep their retirement plan or accept more modest benefits. For new hires benefits would be less generous.