Later this month Daniel Lurie will take office as mayor of San Francisco and in April Oakland will hold a special election to elect a new mayor. Both will contend not only with deficits but also with the problem of spending on current services being crowded out by spending on past services. That problem is caused by elected officials making but not properly funding pension and other retirement promises. As a recent New York Times column put it, “Retirement benefits are like free junk food to politicians — everyone loves them, and the bills don’t arrive until later.” The bills have arrived and the consequences are ruinous.
This problem is entirely the result of political power. Public employee unions employ it effectively, taxpayers do not. The result is not only unfunded retirement obligations but also inflated staffing and salary increases. Changing that dynamic has been GFC’s principal mission at the State Capitol since launching in 2011 but so far we’ve failed. As we have reported before, one conclusion we’ve reached is that there is a better chance of success in cities with smaller legislative bodies (eg, a majority on the San Francisco Board of Supervisors takes six lawmakers as compared to 62 in the State Legislature) and success in a city could boost the chances of success elsewhere in the state. That’s why one of GFC’s priorities is supporting effective political philanthropies in San Francisco, Oakland, Los Angeles and other cities that keep a sharp eye on public employee staffing, compensation and retirement benefits. We need an army of them across California. You can help with financial support, identifying effective political philanthropies in your locality, and/or starting your own local political philanthropy. Let us know of any questions.
