His Voice: The city's dirty little money secrets
by Tim Michael Case / For the Tracy Press
Apr 08, 2011 | 5657 views | 23 23 comments | 24 24 recommendations | email to a friend | print
Do you support a woman’s right to choose? Government employee unions don’t. When a woman goes to work for any government agency, she is forced to join the union. With government employee unions, women do not get the right to choose.

 Unions are run by Democrats. They are consistently the biggest financial contributors to Democrats and RINO’s (Republicans In Name Only) in federal, state and local elections. The money is raised via huge union dues paid by government employees and deducted directly from their paychecks.

When those candidates get elected, they see to it that government workers receive the best health care benefits, the best retirement benefits and the best additional perks packages.

Huge union dues are taken from union employees, and a great portion of that money is funneled back into the coffers of the politicians who get re-elected to repeat the cycle over and over again.

It is the largest legalized money laundering scam going in America today!

Locally, we saw the unions and our City Council get together and devise the Measure E sales tax increase. Employee unions fronted all the money for the ad campaign to convince us to pass Measure E. If we didn’t, we were told police and fire services would be drastically impacted.

The residents of Tracy felt threatened. This has been an age-old ploy of government employee unions and elected officials for decades.

I had the opportunity to be on stage and debate this measure prior to the election. Steve Abercrombie and Mike Maciel of the City Council were in favor. Tracy Tea Party Patriots Jim Freeman and yours truly were opposed.

During the debate, I made the point that city employees had to make concessions on their lavish retirement and health care plans. Why should taxpayers have to pay for such luxurious benefits, when 90 percent of the taxpayers who pay their salaries can only dream of such lavish plans?

The opposition made it clear that pay rates and benefits were determined by “collective bargaining.” They made it distinctly sound like they, the employees, had absolutely no control over the matter. My comments were merely shrugged off by the measure’s proponents.

Now comes the dirty little secret that was never disclosed to the taxpayers by the mayor, the City Council, city management nor the unions: This year, the Public Employees Retirement System is requiring California government agencies to up its contributions for employees to 27 percent of the employees’ salary. In 2016, they jump to 42 percent of the employees’ pay, including bonuses.

Currently, the unfunded liabilities for PERS just in California is $500 billion. That is a half-trillion dollars. This money is needed to provide plush retirement plans and benefits.

Did you know that more than half the City Council is in PERS? They are direct beneficiaries of PERS. 

My entire point in the debate was that we do not need to lose police or fire services. If union members made concessions in their lavish health and retirement benefits, we may not need to cut or impact services.

What adds to making these employees’ retirements so lavish is another dirty little secret much of the public doesn’t know. A great number of employees receive promotions two to three years before retirement. Since PERS bases retirement income on the highest three years of compensation, the employee receives a very handsome raise when he or she collects retirement.

While I’m at it, dirty little secret Number 3 is that Tracy continues to hire high-priced consultants to do research and make recommendations to the City Council. This goes on top of the high-priced salaries we pay to various employees from the various departments, who you would think should be doing this very same work.

However, a main reason for the consultant is to remove accountability from the government employees. This way, the employees are not to blame if the results are bad.

Accountability and blame are removed.

It is also very important to note that when the City Council recommended Measure E to citizens, our mayor pro tem at the time, Suzanne Tucker, did not endorse Measure E. Thank you, Mrs. Tucker.

• Editor’s note: Measure E, which voters passed in November 2010, raised the local sales tax rate a half-cent for every dollar spent. The increase, which will expire in five years, took effect April 1 of this year.



• Tim Michael Case has lived in Tracy since 1982.
Comments
(23)
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ILovePeppermint
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April 18, 2011
I can't help but wonder if the tea party has become bitterly sore toward the city over Measure E ?

Especially when you read something like this and then realize the city isn't the one who created unions.

It was the state of California.

So I have no idea why the author called that a "secret". Is the tea party completely oblivious, or do they believe the rest of California is oblivious.

While I may see some of the TeaParty's complaints - this concern being raised is (in my opinion) laughable as it has little to do with the city of Tracy (unless you are miffed about measure E)?

I just can't see why anyone would attempt to blame California's issues on the city council? But I do see TommyBahama is eagerly jumping on that bandwagon. No surprise there.

And to top it off the author mentioned an outgoing city council member who did not support Measure E - but it probably didn't matter if an outgoing city council member didn't endorse Measure E especially if that council member has no interest in running for city council again?

ertion
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April 14, 2011
I meant to give you a link to one article (there are many of these, just google for them) that describes the under reporting of actual inflation, and some useful background as to how and why this is done. Also the fact that we're at 10% inflation, not at the official 2% rate.

Here's the link to the article from CNBC news:

http://www.cnbc.com/id/42551209

ertion
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April 13, 2011
PERS did make bad investment decisions, just like the other 49 states did. They tended to buy high, lost their nerve in the 2008 collapse, and sold at the low, and topped it off by waiting too long to get back in the game, thus missing out on a lot of the stock market 'recovery'. The money that was lost (many hundreds of billions) can never be recovered.

State pension fund managers are notorious market chasers, and a market chaser by definition tends to lose money unless bailed out by a bull market. One of the reasons for this is that fiduciary responsibility for state pension fund managers is measured by what other state pension fund managers are doing, NOT against what private sector fund managers are doing. You cannot get sued or fired for pursuing strategies that every other state pension fund manager does. So they all end up chasing the market.

FUTURE pension fund reform may well have to move away from fixed dollar guarantees to a sharing of risk by the employee. If PERS investments tank, then the employees take a haircut, just as those with 401k do.

If you are on a public pension or social security, or are close to retirement on one of these, please protect yourself. Your retirement is indexed to the official inflation rate, which is grossly understated BY THE FEDERAL GOVERNMENT because food and energy are not fully accounted for, and by other such gimmicks. The official rate is 2%, which you may get in your COLA, but the real rate is about 10%. So you could effectively "lose" your pension to the tune of 8% less buying power per year, or more.

Protect yourselves.
tommybahama
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April 12, 2011
Ornley - Great to see that you're back.

I appreciate the fact that you're beginning to see the situation from my perspective regarding where the problems in our local government stem from. In your previous post you said;

"Look, if ya wanna castigate people on this have th common decency ta direct yer anger ta th people really responsible fer th mess we're in an leave workin families, either public sector or private sector employees, out of it."

Then you went on to say:

"It's th fat cats at th top that are th problem, not th every day worker. If ya want ta bring it down ta th every day worker remember odds are about 50/50 that yer talkin about one of yer next door neighbors."

And finally you said:

"Why is it that the misguided deeds of th few at th top seems ta automatically brand every other public sector employee as bein on th take an robbin th general public ta support thair paychecks."

Well, from the looks of it it appears you and I are in agreement on the fact that the city manager and his gang are the root of the problems in our local government. I was wondering when you would come around to my (our) way of thinking.

Ornley_Gumfudgen
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April 12, 2011
badattitude49

I ain't a public sector employee either but I do know many that are an they are pretty much like everyone else with their needs, wants an desires.

I personally am glad that ya don't always agree with me. An sometimes ya know I like ta play devil's advocate just ta get people ta start thankin.

Gotta admit, this would be a pretty bad place if everyone agreed with me cus I shore don't have all th answers. But I do know that if we collectively work tagether an put our personal differences aside we got a much better chance at fixin th problem than we do goin th way we've been goin up ta date.

I have real problems when I hear linear thankin that doesn't allow fer any variances or alternatives.

Like sayin that eveyone that wears baggy pants is a gang member or everyone ya meet on Central at night is a gang member up ta no good. Or that everyone who drives an SUV is a bad driver an spends all thair time yackin it up on thair cell phone while drivin an not payin attention.

Yes, those people are there but th preponderance of em are OK an not causin a problem with anyone. But I don't want ta ignore those problems either. They just need ta be put inta th proper perspectives so we can deal with th important manure of life instead of concentratin on every little spatter that hits th ground.

Th same is true fer public an private sector employees, some with collective bargaining representation an some without it. Generally speakin they ain't so consarned with th representation they do or don't have but rather havin a steady job that pays th bills an puts food on th table.

If ya got a family an house ta take care of, ya don't really care much if yer a public or private sector job as long as ya have a job that meets yer needs.

Yep, no doubt thar are some abusin th systems an gettin rich on th backs of other people's work, but let's bring in back inta th realm of logical thankin an understand, that fer th most part, th preponderance of public an private sector employees, at th job level, are not all that different frum each other.

So when ya throw th public sector employee under th bus fer financial reasons, when yer still commin up short, which ya will, who are ya gonna throw under th bus next? Mom an Dad who worked all thair lives ta build up a savings retirement. Or how about yer other neighbor barely scrapin by tryin ta make ends meet while workin in th private sector.

An suppose yer one of them retirees that's put in yer life's work ta get that pension an retirement? Should someone else just be able ta come in thair an take it all away frum ya cus they didn't like th union or public sector job ya held fer most of yer life?

Hey friends, we are all in th same boat an if we don't start pullin th ores tagether very shortly th boat's gonna sink an we are all gonna drown.

So why don't we concentrate on fixin th really big problems ware people are takin advantage of a situation fer personal profit an later on we can concentrate in moppin up th much smaller problems.

Just a thought ta ponder as we wade through this quagmire of financially based problems.
badattitude49
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April 12, 2011
Ornley I don't always agree with ya but you are spot on with this one. Why common working people are targeted for this kind of garbage always baffles me. Most of us are the common working person! And when the S@*! hits the fan as it has now we are the one to bear the burden and have to smell like like what just went through said fan.

By the way I'm not a public employee.
badattitude49
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April 12, 2011
catinthehat wrote:

"Its a fact. Public employee unions have driven the budgets of the Feds, states, counties, and cities over the edge. Not only are they larger than what one would get in the private sector, thier levels are protected by union contracts."

Though I agree with this to a degree please remember there are two sides when negotiating a contract. Neither side can force the other to accept what is to them unacceptable. And yes the agreement is protected by the contract. That is the reason for a contract and applies to both sides.

"These unions extract a payment for their services ... union dues. These are deducted whether the employee supports the union or is against the union."

No one enters a job not knowing it is a union position. If they cannot live with the collective barganing philosophy they can opt to not take the job.

"That means that our tax dollars support the union; who then in turn spends to elect politicians who rig the system in the union's favor."

I don't agree that our tax dollars support the union. Once it is earned by the employee it is their money and if they are unhappy about it they are free to leave.

Ornley_Gumfudgen
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April 12, 2011
After we've decimated public employee employment an benefits an destroy what little public services we have left, while increasin unemployment an payin out all th unemployment benefits that can be had, I wonder who th general public will turn against in thair next futile efforts ta reduce thair taxes an stimulate th economy?

Imagine workin fer a firm fer 20 years or so, payin inta yer retirement an pensions fer all that time an have someone on th outside sayin that ya will be gettin too much after retirement an takin aggressive steps ta not only do away with yer job but doin away with th pension ya have paid inta fer all them years.

Now, keep everythang th same and just change th word firm in th first sentence in th paragraph above ta City, County, State or School District, take yer pick.

Look, if ya wanna castigate people on this have th common decency ta direct yer anger ta th people really responsible fer th mess we're in an leave workin families, either public sector or private sector employees, out of it.

It's th fat cats at th top that are th problem, not th every day worker. If ya want ta bring it down ta th every day worker remember odds are about 50/50 that yer talkin about one of yer next door neighbors.

An if ya still have problems, march yerself over ta yer next door neighbor's house an tell em ta thair face how angry ya are that thair still employed an makin thair house payments.

Why is it that the misguided deeds of th few at th top seems ta automatically brand every other public sector employee as bein on th take an robbin th general public ta support thair paychecks.

Example: We are all aware that TUSD is gettin ready fer another round of cuts. Did ya know that a Clerk Typist is a classified employee of th district an get's PERS too? Did ya also know thair is strong pressure on th district ta do away with all Clerk Typists? Do ya know what thair annual salaries are? Can't speak fer all of em but I believe it's in th low thirty thousands.

Do ya know how many families these Clerk Typist jobs represent in our community?

So, when they all loose thair jobs ta sedate yer anger against public sector employees are ya prepared fer how unemployment, social assistance an foreclosures/short sells are gonna personally effect ya?

So, after all th public sector employees are thrown under th bus, who ya gonna throw next? Here's a good en, how about welfare an social security recipients? Then after that we can go against those with large personal investment portfolios so they can have a nice large steady income in thair retirement years an then, because that won't be enough, start raidin all 401Ks an pension funds in th private sector ta come up with th cash ta run thangs.

Don't know about ya but hittin workin class people in either th public sector or private sector don't seem ta be doin much good except ta polarize th two groups against each other.

That's not good fer anyone except th fat cats at th top of th private an public sectors an they are fully insulated.

Look, th problem is we got too many wants that are bein filled with money that we don't have ta spend.

Lay off th social give away programs ta people that shouldn't be collectin it an ya will go a long way towards fixin th problem. But as long as every hand receives a handout without workin fer it yer just wastin yer time on public sector employees an thair benefits cus when thair all gone all ya have really done is ta make thangs worse.
mollysmom6
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April 11, 2011
As a City of Tracy for 23 years, I would like to add that there are NO promotions now or has there been in the last 2 years. I for one have lost $400 a month with furloughs and reorganization. If PERS contribution goes up the employees have already been informed that they will be paying. We may have good medical benifits but they also come at a cost. 90% seems a little inflated fpr citizens without good retirement. I know that there are a lot of Union employees within the city that work private sector and have medical and retirement packages as good as ours. Remember when you go looking for employment that its your choice to choose an employer that offers benifits. Say in school get a college education it pays off.
ILovePeppermint
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April 10, 2011
catinthehat,

I beg to differ. In fact the article was titled CITY's DIRTY little MONEY Secrets.

The unions were created by the state of California.

If the author had explained this was a statewide issue I might be able to follow that logic.

I do understand the union discussion, but until the governor gets some clout in Sacramento and does what he said he would do we are all going to be in the same leaky boat.

catinthehat
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April 09, 2011
Mr. Case makes some good points.

Just because your particular pension situation is not what you feel is "lavish" or "over the top" is really not the point here.

Its a fact. Public employee unions have driven the budgets of the Feds, states, counties, and cities over the edge. Not only are they larger than what one would get in the private sector, thier levels are protected by union contracts.

These unions extract a payment for their services ... union dues. These are deducted whether the employee supports the union or is against the union.

That means that our tax dollars support the union; who then in turn spends to elect politicians who rig the system in the union's favor.

The same thing happens with Planned parenthood (they spent 1M last year in lobbying efforts to elect democrats).

Aren't these examples of conflict of interest? Why should I, or anyone else, support union labor, planned parenthood, npr, or any of the other "unholy alliances" that are entrenched in our current public sector?

What is amazing to me is why folks in unions fight these changes when, under the current policies, the state, county, and cities where these public employees are employeed will face bankruptcy! Its sort of like lemmings being led off the cliff.

The actions in Wisconsin, Ohio, Flordia, Texas, Idaho, and many other states accross the nation are becoming reality.

Even today in Washington state which is fully democratically controlled, 10Billion in cuts will HAVE to happen ... It really is'nt a matter of whether you like it or not...and it is coming to California.

We have become a nation of takers ... expecting the government to come to our rescue and support us for life. It's time we took ownership of our own lives and REDUCE the size, scope, and cost of the government at EVERY level.
Firemedic_not_Tracy
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April 09, 2011
So what if the Federal Govt wanted to cut Social Security for you right before you retire. After you have been paying into it for 30 years. The American People say that even though you have been paying into the SS system for 30 years it can no longer sustain your retirement so you lose out. What is the difference between that and PERS. SS also includes medical.

People are now looking at the Retirement benefits of public employees because PERS made some bad financial decisions. Not because the peopl are taking too much out. Because of those decisions some people say PERS is "underfunded". PERS, over the last 20 years, has had an average POSITIVE return of more than 10%. It was higher until the recent recession where they lost money. With the current rate of return for PERS investments being much higher and rising.

I currently put in 17% from my salary towards my PERS retirement. It started at 9% when I was hired 15 years ago. The extra 8% is my portion of "cost sharing" of higher PERS expenses. Some people don't think that others who work for 30 years risking their life should be able to leave with anything other than a Thank

you for your service. PERS IS our "Retirement" and it does NOT include ANY medical for our family. So, not only am I paying 30% in State and Federal Taxes so that the "poor" and "unemployed" can have benefits, I also pay an additional 17% of my salary to my retirement. So that when I do retire, I can afford to living expenses. I also have to put into my "401K" plan so that I can supplement my retirement when inflation outpaces the minimal increases I would get. I also would use that to pay the medical insurance for myself and my spouse which can run upwards of 12,000 a year for basic insurance. I dont get to collect Social Security because I haven't been paying into the system. So, why slam the public salaries and pensions. They are what they are because the employees had to keep up with inflated home prices and costs. We are doing more, with less everywhere. The 1/2 cent sales tax is a very small price to pay to keep vital services working in the city. The day you need to call them, is the day you will see the value. Until then, shush..
fortheunderdog
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April 09, 2011
Just to set the record straight, I'm retired law enforcement. I wish my monthly pension was more so I could afford to pay my medical insurance that's over $800 mo. That was something not given to me by PERS.

After reading all of your whining complaints, I came to the conclusion that you're nothing but a malcontent.
pinkwillow
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April 08, 2011
Tim,

You consider $2220.00 a month lavish? Thats what Calpers says is the average monthly retirement amount. Tracy retirees don't have medical insurance provided after they retire either. So you want them to give up retirement money they EARNED but dont say a word about giving free medical care, housing , and food to able bodied BUMS that just want to milk the system.

This other "fact" you spout about, they recieve promotions 2 or 3 years before they retire. The last time I looked there was only one fire chief and one police Chief. There are at least 150 firefighters and poilice officers in Tracy. Maybe 15 mid level supervisors and 30 front line supervisors. Your math is off a little If you think the majority will promote. A truer statement would be that almost 50% of them NEVER make it to retirement because of physical and mental injuries helping people like you.

But you almost had one fact correct. There retirement is based on thier single highest year, not three years. You were so close on that one.

Did you know they dont get social security? Then theres the little issue of having people like you attempt to dictate pay and benifits for jobs that you could not qualify for or understand.

Not to surprised why you didn't get elected.
ILovePeppermint
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April 08, 2011
First of all, as a true resident of Tracy I never felt "threatened" into voting for Measure E. I felt it was the right thing to do so that the city I live in does not end up like Stockton.

And I don't get it. Consultants are NOT union. Right?

So.

Maybe by the author's own logic. These consultants are not as "high paid" as some might think?

whoareyoukidding
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April 08, 2011
fortheunerdog is correct. Stop complaining and give some suggestions.

fortheunderdog
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April 08, 2011
How about some solutions, to what you see are problems, instead of just bitching.
FRIENDOFBILLW.
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April 08, 2011
Great job Tim. Thank God we have you to stay on top of things.

In Brotherhood...A.J.
againstallodds
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April 08, 2011
Tracy's newly enacted tax is for 5 years and it's a way to help this city out during this economic slump. I'm not happy to pay it but I feel it's necessary.

Regarding the comment that one-half the city council is in PERS, well that's understandable since more than one-half are former law enforcement employees. And although their pensions cannot be affected by any new changes to PERS, or any other employee now in PERS, there should be some change in the future regarding PERS pensions but I wouldn't take it so far as to take away from future law enforcement retirement. These are the people who will risk their lives for you. They get little in the way of respect and salary now. Most of the letters/comments by this author all have the same tone. Leave it to a disgruntled Republican, aka Tea Party member, to stir the pot.
tommybahama
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April 08, 2011
TracyGuy95376 - You've got a good point but I think salaries and benefits have outpaced inflation (in Tracy government) over the past several years and that's what has gotten us into the situation Jim is pointing out.

I don't think you can truly reduce taxes until you deflate government salaries and benefits, which continue to rise. I also don't think the solution is raising taxes, I think it's a systematic approach to deflation.

Unfortunately the people who should be working to deflate the cost of government are the same people who stand to lose from the deflation of the cost of government.

Do you think leon churchill, dan sodergan or zane johnston are going to step up and say, "Hey, it's OK to give me a 20 or 30 or 40 percent pay cut so we can balance the books?"

I certainly don't.

What I think needs to happen is the mayor and council need to step up and start making some hard decisions about the welfare of our city. Until then our city is going to continue down this path to bankruptcy.


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