Voter’s Guide

Measures A & B

There is a special election being held during the month of August both with wide ranging repercussions for all of us. Please study this facts, as well as represent the arguments made by both sides. If you August 15th to cast a ballot in this election. And, all ballots must be

Pension reform – Measure A

Pensions are, very simply, payments that are made after retirement when the employee is no longer working. They are considered a benefit to the employee and are generally negotiated and established far before retirement.

BenefITs Pensions help attract talented applicants because, after a certain amount of time on the job, a retirement with residual income is possible.

DrAwBAcks As pensions are typically a lifelong benefit, an unknown cost may be burdened on the entity paying the pension. In the case of a government, those costs are passed on to the taxpayer.

BAckgrounD Due to a clause written into the city charter in the 1970’s, the city council cannot reduce pension benefits except by a vote of the citizens. The amendment created by Measure A would give the city council the full authority to negotiate pension changes with the unions within the framework of existing state Law. with this amendment, the city council would be able to negotiate lower pensions for new employees and higher pension contribution requirements by all employees.

ArguMenT for A “Yes” VoTe In 2003, the city’s pension costs were $1.8 million. This year they will exceed $8 million, and future increases in pension costs are virtually certain. Today, a police officer or firefighter can retire as early as age 50 and receive up to 90% of base pay as pension. other city employees can retire as early as age 55 with no cap in their pensions - and increases are guaranteed for inflation. Instead of paying for other city services, monies are being diverted in ever increasing quantities to service these pensions.

ArguMenT for A “no” VoTe The amendment created by Measure A takes control away from the voters and gives it to the city council instead. Additionally, pensions are an important benefit in attracting and retaining employees.

The fAcTs Pension costs are the fastest growing part of the city’s budget and the revenues required to sustain those payments is becoming untenable. As people are living longer lives, if left as-is, it is reasonable to expect that the cost of pensions will absorb a greater percentage of tax payer receipts. At the same time, it is important to understand that the city employees are making and have made decisions based on this covenant they have with their employer.

here in san Luis obispo. on the ballot are two measures, A & B, guide carefully. we did our best to distill the issues down to the are a resident but are not yet registered to vote, you must do so by received by August 30th.

Repeal of Binding Arbitration – Measure B

Binding arbitration is often used to quickly and efficiently resolve legal disputes. Instead of a judge and jury, an objective, impartial third-party (arbitrator) evaluates the arguments of the two groups in conflict and makes a binding decision, which must be accepted by both sides and cannot be appealed.

BenefITs It is a low-cost and fast solution compared to traditional legal proceedings, and in the case of a traditional union dispute it can award a cost-of-living increase to them without the threat of a strike which causes losses to both sides in the form of lost income to the union members and services to the community.

DrAwBAcks The arbitrator must declare one side or the other “the winner” and cannot mandate a compromise or middle ground, which tends to encourage extreme positions for the parties entering into the dispute. since the arbitrator cannot live in the area, he or she may not fully understand the full impact and ramifications of his or her decision on the community as it relates to either side.

BAckgrounD Binding arbitration has been a part of the city charter for 11 years, and it applies only to the firefighters and Police unions and not to the other city unions. The city entered a binding arbitration proceeding with the Police union in 2008. At that time, the arbitrator ruled against the city and awarded police officers a 27.28% cost-of-living increase over 4 years and dispatchers a 32.82% increase over the same period. During those four years, the cost of living in san Luis obispo actually increased by 11%.

ArguMenT for A “Yes” VoTe since the arbitrator can only choose one side or the other and cannot recommend a middle ground or compromise agreement, binding arbitration has been a money loser for the city. The additional compensation awarded to the Police union by the arbitrator during a time of deficits has come at the expense of other city services. The cost-of-living increases awarded to the Police union make them among the most highly compensated department in the state.

ArguMenT for A “no” VoTe Binding arbitration is an effective and efficient way to resolve labor disputes and ensure continuity of vital first-responder services to the community. since, by law, california police officers and firefighters may not strike (see “The facts” below), binding arbitration is an important collective bargaining tool for these unions. without the threat of binding arbitration, the unions will lose their leverage in these negotiations with the city.

The fAcTs concerns over future work stoppages or outright labor strikes by our local police and fire departments are not valid. Last year, The california supreme court in the case of the city of san Jose v. operating engineers Local no. 3 ruled that, while public employees have the right to strike, they cannot do so if the employees “perform jobs that are essential to public welfare.” In other words, by law they may not go on strike. SLO LIFE

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