Pension reform falls apart for now

Prospects for a ballot measure this fall appear dead. Gov. Brown and Democratic lawmakers couldn't come to terms on changes to the state pension system. You might recall Brown's ambitious 12-point proposal that included raising the retirement age for most workers to 67 and a hybrid 401(k)-style pension for new employees. As could be expected, union officials balked at the plan. The problem in a nutshell: Comprehensive pension reform is a political non-starter and watered-down reform is a fiscal non-starter. From the LAT:

Tuesday's announcement likely scuttles any plans Brown had to place a pension measure on the November ballot -- a move that he said was necessary to have the changes apply to cities and counties. The governor's political advisors have also said that a pension plan on the ballot could boost the prospects for his tax initiative in the fall, showing voters that Democrats were cutting back on public spending while asking voters to open their wallets for higher taxes. Still, Democrats said Tuesday that a pension deal would happen in August, when lawmakers return from their break.