Friday, January 05, 2007

Re "This time, let's get state pension reform done right," commentary by
Gov. Arnold Schwarzenegger, Dec.. 28: The reason state pension and health
benefits are better than the private sector's is that state salaries are
below the private sector, significantly so at upper levels. For decades,
legislators and governors of both parties have saved money in yearly budgets
by not paying fair market salaries, at a cost to future generations in the
form of pension and health payments. Does this sound familiar? State
salaries are insufficient to attract quality employees without the pension
and health plans. I would support pension and health benefits changes linked
with salary reform, so that all three were more in line with the private
sector. However, you can be sure that Republicans, including the governor,
will focus only on the pension and health benefits and ignore the salary
issue. They couldn't care less about the state's ability to attract quality
employees. Democrats are more likely to focus on the underlying problems of
salaries and employee recruitment, but they, too, respond to the siren call
of putting off current costs into the future. I'd be surprised if anything
positive comes out of the governor's benefits commission.