Brown’s Pension Overhaul Talks With California Democrats Falter

Wednesday, 04 Jul 2012 06:58 AM

 

Share:
A    A   |
   Email Us   |
   Print   |
   Forward Article  |
  Copy Shortlink

Governor Jerry Brown and Democrats who run the California Legislature won’t reach an agreement over his plan to curb public-employee pension costs before lawmakers break for vacation, according to a Brown spokesman.

Last year, the Democratic governor proposed pushing state workers into a hybrid system combining elements of 401(k)-style savings plans commonly used by businesses with traditional defined-benefit pensions. Brown, 74, also wants to raise the retirement age to 67 from 55 for most employees and to ban practices known as pension spiking and double dipping.

Democrats in the Legislature have resisted some of the changes. Lawmakers are set to begin a monthlong break July 6. Brown wants to sign a pension measure soon so he can use it in his pitch to voters for his initiative to raise income and sales taxes temporarily with a ballot measure in November. If the proposal is rejected, it would trigger $6 billion in cuts.

“The governor could not agree to some of the changes in the pension counterproposal shared by the Legislature,” Gil Duran, a Brown spokesman, said today in a statement. “These complex issues cannot be resolved in two days and he has asked the Legislature to continue to work with him over the recess to resolve the substantial differences.”

Rising retiree obligations are straining the budgets of states and cities across the U.S., where leaders are still coping with the revenue effects of the longest recession since the Great Depression. A weak recovery has churned up a backlash against public-worker pay and benefits nationwide as taxpayers’ job prospects wilt and retirement nest-eggs shrink.


© Copyright 2014 Bloomberg News. All rights reserved.

Share:
   Email Us   |
   Print   |
   Forward Article  |
  Copy Shortlink
Around the Web
Join the Newsmax Community
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Retype Email:
Country
Zip Code:
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
You May Also Like

Peter King, Press Corps Irked Over White House Boston Observance

Tuesday, 15 Apr 2014 22:16 PM

The White House press corps was unhappy that it was not allowed access to a moment of silence for Boston Marathon victim . . .

Arizona State Rep: 'Can't Recognize My Country' in Rancher Dispute

Tuesday, 15 Apr 2014 18:47 PM

Nevada rancher Cliven Bundy may have been partly to blame for his standoff with federal authorities, but the government' . . .

Bill Allows Snap Inspections of Arizona Abortion Clinics

Tuesday, 15 Apr 2014 20:58 PM

Arizona Governor Jan Brewer on Tuesday signed into a law a bill allowing state health authorities to conduct surprise in . . .

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved