Contra Costa Taxpayer News

• Executive Director Kris Hunt appearing on CBS Channel 5 news speaking about the public employee pension and retiree health care financial crisis:  http://cbs5.com/video/?id=50779@kpix.dayport.com

• Check out the National Debt Clock. It will frighten you. http://www.usdebtclock.org/
  

• Currently, 5,115 retired California state workers receive pensions of $100,000 or more. To access the list go to:  http://www.californiapensionreform.com/calpers/

• The Contra Costa County Board of Supervisors' recent press announcement that the Fire Fighters union had  agreed to defer two wage increases of 2.5% for two years failed to emphasize some critical  financial aspects. First, it leaves the County in no better financial condition than it is now. Second, health care and retirement benefits remain unchanged. Those benefits are not only quite costly, but health care is one of the subjects included in current negotiations with other Contra Costa County unions (pension revisions have not been mentioned.) More immediately lucrative are the Overtime earnings by employees of the Fire District .  During 2008:

   

  ·         15 District employees earned over $100,000 in overtime

  ·         123 employees earned between $50,000 and $99,999 in overtime.

  ·         103 employees earned between $25,000 and $49,999 in overtime.

   

  When you combine the deferred (not forgone) raises and extending the health care and retirement benefits for another two years with the generous overtime earnings you can see that these items should be viewed as a total compensation package. The County agreement was merely touting one aspect of compensation.  

   

  To get a perspective on the Overtime earnings:  2008 Regular earnings total = $33.5 million  while District Overtime totals a staggering $15.0 million. 

   

  Overtime is a valuable and cost effective management tool when used correctly. However, when you have someone earn nearly 1 ½ times their salary in overtime, one begins to at least question the level of use.  Also, the overtime certainly does not benefit all employees to the same degree.

   

  This is but a starting point of what is going to have to be an ongoing series of cost changes to keep Contra Costa County afloat for the next few years.

   

  A copy of the Salary and Overtime figures for the Fire District for 2008 is attached. The source of the data is the Contra Costa County Auditor-Controller’s Office. FIRE DEPARTMENT SALARY DATA 2008.pdf

• On March 17th, County District Attorney, Bob Kochly, testified before the Board of Supervisors as to the impact of the $1.9 million in budget cuts. He was very clear that in reducing the legal staff from 91 to 73, he would have to reduce the misdemeanor caseload by 45%.  He declined to name what crimes he would not prosecute "for obvious reasons."  He recently sent a letter to the chiefs of police in the County to let them know what was going to happen.  See letter: Kochly letter to police chiefs.pdf  That letter was made public by someone who received it from Kochly. Yesterday, Contra Costa County Board of Supervisors member Federal Glover called for an investigation of Kochly's office by the State Attorney General. See article from the CCTimes: CCTimes article on Federal Glover call for AG investigation.pdf  It is very disappointing that because Kochly is doing exactly what he told the Board he was going to have to do, he is being subjected to the indignity of a call for an investigation of his office by the State Attorney General.  Even if nothing comes of this threat, the fact it was made will always be lurking on the internet calling into          question Kochly's abilities. This is not the way to deal with a public servant who was        trying to meet the requirements of elected office in the best way he could with the          budget allowed him.

• What follows is the slide presentation County Administrator, David Twa, made at the Board of Supervisor's meeting on March 17 on the County budget. You absolutely must check out page 37, and you will see the future of Contra Costa County. 

• Mr. Twa pointed out that there is still a structural deficit, so to my mind this is not really a "balanced" budget.

  Contra Costa is currently in negotiations with the majority of their employees. Unless the County is able to significantly rein it the benefit costs, the fiscal downward spiral will continue.

  Supervisor Gioia talked enthusiastically about a Utility Users Tax. This will have to go through a hearing process beginning with the Finance Committee.Budget Hearings - Presentation for Web 3-17-09.pdf

• This is a relatively short document that clearly sets out the financial state of the County. Recommended Budget memo from David Twa.pdf

• If you want to see why you should be concerned about the financial health of Contra costa county, take a look at this chart taken from the County Administrator's Recommended Budget: projected retirement costs for Contra Costa County.jpg

• The proposed state budget fix unfortunately does not solve the state's problems. The majority of the "cuts" are only temporary and using financing gimmics like borrowing from future lottery revenue is not a sound business practice.  Plus, the many tax increases are not likely to raise the projected revenue in a falling economy.  Increases in sales taxes is highly regressive. It is unfortunate that the information on this plan was not released earlier so that we actually knew what was in it.  See the latest CoCoTax Issues Update for more details. Issues Update 2-18-09.pdf

• CoCoTax is pleased to announce that State Insurance Commissioner Steve Poizner will be the guest speaker at the 72 annual meeting of CoCoTax. The meeting will be held April 15 at Zio Fraedos in Pleasant Hill. Mr. Poizner is not only California's Insurance Commissioner but is seriously considering at running for Governor.  We look forward to having him as our special guest.

• January 7, 2009  - The Contra Costa County Grand Jury issued a new report that concludes CCCounty continues to be ill-prepared for Labor Negotiations. With the majority of the County's staff working under labor agreements that expired last September, there still seems to be no comprehensive plan for dealing with union negotiations.  The Grand Jury concludes: "It is an absolute necessity that the BOS (Board of Supervisors) address the financial impact that reduced County reserves will have on salaries and benefits, ignore political expediency, and impose prudent financial discipline on any proposed labor settlements. To accomplish this, the BOS shall appoint a Financial Oversight Committee within 6 months to include, but not limited to, the County Treasurer-Tax Collector and the Auditor-Controller." Grand Jury Report 09020 1.7.09.pdf

• Issue Update regarding the Democratic Proposal to raise taxes by circumventing the two-thirds vote: Issue update 12-18-08.pdf

• The latest edition of the CoCoTax newsletter can be downloaded here:Election NOV-081.pdf

• CoCoTax believes that Richmond's Measure T which in on the November ballot contains provisions that are both a violation of state law and are unconsitutional.  Cal-Tax, the statewide tax organization agrees and has done a letter to that effect measure t _4_.pdf.  The unfortunate part is that Measure T was put on the ballot by a group of citizens who were not experts in tax issues.  This could very well mean that if the measure wins, the citizens of Richmond will be forced to go to court to defend this measure. 

• September 16 - Today Kris Hunt, Executive Director of CoCoTax, expressed the organization's support for Governor Schwarzenegger's veto of the budget compromise that relied on financial gimmicks and failed to provide critical budget reform. Relying on tricks like raising withholding taxes only to have to refund that money next year is no way to budget.  The press release can be read here: Governor Schwarzenegger is right to veto this budget.pdf

• The Contra Costa Grand Jury issued the fifth in a series of reports on the problems of Retiree Health. Kris Hunt, Executive Director had the following piece on that the report published in the Contra Costa Times.Commentary on Grand Jury's Fifth OPEB report.pdf  To read the Grand Jury's full report seeGRAND JURY REPORT- The Supervisors Chip Away at the Coun….pdf

• If you are confused about the Rent Control portion of Prop 98 please read the commentary Executive Director Kris Hunt did in the SF Chronicle.  You might be surprised to learn that only four states actually permit rent control. Prop 98 and Rent Control for the SF Chronicle.pdf

• The Contra Costa County Auditor-Controller has released the earnings information for County employees. SFGATE has data for several counties as well as local cities at http://www.sfgate.com/webdb/citypay/   

          Contra Costa positions earning $100,000 or more in 2007 sorted by 

        overtime:  cccwageearners 2007 over $100,000 by Descending OT.pdf       

        Contra Costa positions earning $100,000 or more in 2007 by earnings:

        cccwageearners 2007 over $100,000.pdf

        Contra Costa wagearner data: cccwageearners 2007 e-mail file alpha.pdf 

• YES ON 98, NO ON 99.  It was not until the 2005 Kelo decision that most people learned that their home, business, farm, or place of worship  could be taken by a government through the use (or threat of use) of eminent domain and given to another private party to develop. Since that time 41 states have changed their laws to protect property owner rights.  On June 3rd, California voters have a chance to change the state constitution to  safeguard property rights.  Prop 98, which the Howard Jarvis Taxpayers Association and the Farm Bureau placed on the ballot, provides comprehensive protection for all property owners.  Prop 99, which the League of Cities placed on the ballot, protects only owner-occupied housing. However, the Institute for Justice, the group that took the Kelo case to the Supreme Court, believes that Prop 99 is so weakly written that it is fatally flawed.  Prop 99 also contains a poison pill, so it both propositions pass, and 99 has even one more vote than 98, the only the provisions of Prop 99 will go into force.       

• April 8, 2008: the BOS passed a contract with the County nurses. They did not deal with retiree health. The one concession to health care costs, was to ask employees to absorb changes in copayments should there be any during the term of the contract. Currently the County's most popular plans are run by the County with minimal ($5) or no copayments. The County, as the employer, picks up 98% of the cost.  This is the 4th contract signed by the BOS within a month that does not deal seriously either with health care or retiree health care.

• April 7, 2008: County Administrator, John Cullen, released a memo telling the approximately 1300 management and unrepresented (non-union) employees that he will recommend that the County will freeze the employer contribution for health care benefits at the 2009 level along with some other fundamental changes that should have been in place years ago (such as requiring that employees be required to enroll in Medicare once they qualify.)  A copy of the memo is attached.  The BOS will be announcing the new OPEB liability for the County (this is for retiree health and the last calculation showed the County owed $2.6 billion) along with these recommendations on April 15. The BOS has not prepared staff for this possibility because they have continued to understate the County's financial problems. John Cullen Memo on Management & Unrepresented Health Care.pdf      

• These are some basic solutions for the County's OPEB problems    OPEB SOLUTIONS From CoCoTax.doc

• Latest edition of the Contra Costa Taxpayer Election Winter 2008 Newsletter email.pdf

• The Governor's Post-Employment Commission dealt Contra Costa County's plan for dealing with the County's $3 billion retiree health care problem a major blow. The Commission's Report stated unequivocally that retiree health care benefits should be funded at 100% rather than the 40% goal the Board of Supervisors has set for the next 30 years.  The Commission's report can be found at: http://www.pebc.ca.gov/

• If you want to know how your tax dollars are being spent check out the 2007 Piglet book at www.hjta.org  You will find it both informative and depressing!

• The Howard Jarvis Taxpayer Association (www.hjta.org) has released its Legislative Report Card for 2007: state lawmakers from our area were rated as follows:  

                           Senator Tom Torlakson = F 

                           Assemblyman Mark DeSaulnier = F 

                           Assemblywoman Loni Hancock = F

                           Assemblyman Guy Houston = A

• The Contra Costa Economic Partnership just released an excellent report on Managing Public Retiree Healthcare Costs. The report not only covers the critical problem of the County, but also details the issues in the cities as well as select school districts and some special districts. The cost of retiree health in the public sector is the biggest financial problem facing the County. CCEP OPEB Report.pdf

• Executive Director Kris Hunt testifies at the Governor's Post Employee Benefits Commission hearing in Burlingame July 12 2007 pension commission testimony.doc

• Initiative filed to solve the future problems with public employee pensions and health care Filing Press Release.doc; Filed Version.doc; Questions and Answers.doc

• CoCoTax Executive Director Kris Hunt appears on CBS5 to explain risks of health care deficit. Click here to view video.

• The Contra Costa County OPEB Task Force published an excellent report on the County's growing problem with retiree health care. (OPEB stands for Other Post Employment Benefits.) The County has a $2.6 billion Retiree Health Care liability.  Where the County is now paying $36 million a year for health care, to fully cover the benefits they have promised retirees, the true cost is $227 million. What happened and some ways in which this can be addressed are outlined in Taskforce Report published on March 1, 2007. Click here to see their report.