Still no urgency from City Council on budget crisis

cityhall2.jpg They keep messing around with plans to shave off the city's pension obligations in future years, but not a word on what to do with current shortfalls, which is at the heart of the deficit problem. And even those watered-down ideas are getting pushback from the unions. The latest proposal from budget chief Miguel Santana would increase the retirement age for newly hired workers from 55 to 65. That's nice, but the city has been cutting back - not adding - staff members. From the LAT:

The proposal was quickly denounced by Bob Schoonover, president of Service Employees International Union Local 721, who called it "unsound and unlawful" -- and a "frontal attack on all city workers." Schoonover said the council cannot unilaterally impose the changes contained in the proposal. "If the city refuses to negotiate about the proposed changes to city worker pensions, we'll take whatever action necessary to enforce our rights, even if it means going to court," he said.

The Waking-Up-From-the-Dead Award goes to Councilman Ed Reyes, who has yet to review the proposal but notes that the city's budget problems make pension reform "a direction we need to take." Give that man a lollipop!


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Mark Lacter
Mark Lacter created the LA Biz Observed blog in 2006. He posted until the day before his death on Nov. 13, 2013.
 
Mark Lacter, business writer and editor was 59
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