When A Pay Cut, Is A Fake Pay Cut

by Edmund Jenks | May 20, 2009 at 10:38 am
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This morning in Burbank, the board of the California Citizens Compensation Committee acted on Gov. Arnold Schwarzenegger's wishes in a bigger way than anticipated. The Governor had been working on getting concessions in salary from the group(s) that represent the state elected officials and officers of about 10% ... he got 18%!

This may sound good ...

But the pay cuts the panel approved won't start to go into effect until December, 2010, because the California constitution prohibits state officer salaries from being cut in the middle of their terms.

The cut will drop the annual pay of a legislator from $116,208 to $95,291.

So, when is a pay cut a FAKE pay cut? When it does not take effect for about one and one-half years from the time the decision is made. There is plenty of time between now and December 2010 for this ruling to change, or be overturned!

Declaring that elected officials must share the pain of California's fiscal crisis, an independent commission voted today to impose an 18 percent pay cut for statewide elected officials and all members of the Legislature.

The Californian Citizens Compensation Committee, which sets salaries for state officers, earlier voted in favor of a more modest 10 percent pay cuts in an April 29 meeting in Sacramento. But the action couldn't stand because the seven-member board lacked the required four votes.

But today the commission voted 5-1 to make a deeper reduction in elected officials' salaries because of Gov. Arnold Schwarzenegger's announced plans to lay off 5,000 state workers.

They also said they were influenced by voters' overwhelming approval of Proposition 1F - a ballot measure that will ban increases in lawmaker salaries - in any budget deficit year.

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Roy C

The beginning of the end of the numicipal and elected representative gravy train has begun.

Vallejo, Calif went bankrupt almost a decade ago, all due to the pensions that get promised to government employees.

We can't afford them, plain and simple.

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Amy Judd

This is so annoying - it makes it seem so good, yet it's really not.

1
Roy C

Amy, elected officials, being in cahoots with the municipal unions, helping assure themselves of re-election by being generous with the taxpayers' money, were the ones who let the wind be sown.

Now we reap the whirlwind.

No one is saying that this is good. But the bubble of illusion must first be lanced to allow a real view of what actually can be done.

That is the meaning of "apocalypse", the "revealing" or "unveiling", and that is precisely what we have here.

People who work should make separate payments to a fund that will be their retirement fund and not live off the taxpayers' money after they have retired.

The only problem with that was that it wasn't generous enough for the municipal workers who wanted more money than, let's say,  my service employees international co-workers got from their retirement fund.

Vallejo went broke even before the stock market crashed because of these pensions. New York City is broke as well because of this.

I refuse to back any bailouts by Obama to these states and cities that refused to deal with reality. And, I am going to email all my representatives.

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Edmund Jenks

Well stated Roy - NO citizen should allow the Federal Government to move and take-over the States as they have the Banks and Automobile industry.

Look, on the Federal level, this is all about CONTROL and they do not care what it takes to allow them to do this. Take taxpayer money that THEY do not have to pay back, and print as much money they feel they will need (about one Trillion dollars to date) in order to pull off this PONZI scheme of central, and socialist CONTROL.

Don't let Washington D.C. bail out any state, especially one as large as California. The politicians in California should be allowed to fail or correct themselves.

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Amy Judd

Yes that's what I mean, it just seems like it would be so good without any further investigation, but if you look just slightly below the surface you realize what is actually happening, and you don't even have to look that deep really.

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Roy C

Thanks, Amy, for the clarification.

Understood and agreed: the "apocalypse" is just beginning.

What I am afraid of is that California won't be allowed to cut the pensions and so will have to cut services.

When the state owes you money and doesn't pay, a federal judge can force the state to liquidate assets to pay the debt.

So, the pensioners go first unless there is a way to declare bankrupty/Chap 11-receivership after which the pensions can be renegotiated.

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Roy C

This crisis is actually the most important story of the current situation, the economic crisis, because it brings to bear all parties involved and it brings out all the irrational aspects of the whole society that created the situation to begin with.

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First Flagged at 12:15 PM, May 20, 2009 by SamirJ
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