By Len Feldman
A subcommittee of the Assembly Budget Committee has hung a "do not pass" recommendation on the governor's proposal to withhold $469 million from the state's share of retirement contributions and his proposal to convert public employee pension benefits into a 401(k)-style gamble.
Following testimony from Superintendent of Public Instruction Jack O'Connell, delivered on behalf of the Education Coalition, the subcommittee voted to urge the full panel to reject the governor's proposals.
"Don't be fooled. This [STRS holdback] is a straight cut to our schools," testified O'Connell. "Our school boards know this and are struggling with it."
As for converting from a defined benefit to a defined contribution pension system, he said, "Teachers should not be asked to take a vow of poverty - in the workplace or once they retire."
The subcommittee discussions are part of the Assembly's work in formulating its final budget proposal. Both houses are gearing up for the release of the governor's updated revenue forecasts and expenditure plan, the "May Revision."
Lawmakers could vote on the governor's retirement proposals later this year as part of their budget deliberations. The pension conversion plan is also contained in a special session bill, ACAX1 1.
The Assembly Budget Process Committee held yet another hearing on ACAX1 4 (Keene), the governor's special session bill that would gut Proposition 98 and implement automatic budget cuts - so-called "robocuts" - several times a year under certain circumstances.
Panel members Assembly Members John Laird and Noreen Evans asked pointed questions of the bill's sponsor that revealed how devastating the proposal would be, especially to public schools and health care. Evans said she fears the proposal would accomplish the goal the governor spelled out in an editorial board meeting: "He wants to use these cuts to starve the public sector ... public education and health services."
Here's where the package components stood at press time:
- ACAX1 4 (Keene), the governor's special session bill to gut Proposition 98 and implement automatic budget "robocuts" under certain circumstances, was still on hold in the Assembly Budget Process Committee. The bill would make it possible to cut public education funding several times during the school year.
- ACAX1 1 (Richman) remains in the Assembly Public Sector Committee. The bill would decimate public employee pensions by converting both STRS and PERS from stable defined benefit plans into risky 401(k)-style programs with no guaranteed payments.
- SCA1X 1 (Runner), which would impose merit pay and gut teachers' due-process protections, is still in the Senate Education Committee.
- ACAX1 3 (McCarthy), the legislative redistricting bill, is still awaiting action in the Assembly District Representation Committee.
