The Capistrano Insider

Is California Going to Fail?

A very well written and interesting article from the Guardian in the UK about the future of our state ...

"California has a special place in the American psyche. It is the Golden State: a playground of the rich and famous with perfect weather. It symbolises a lifestyle of sunshine, swimming pools and the Hollywood dream factory.

But the state that was once held up as the epitome of the boundless opportunities of America has collapsed. From its politics to its economy to its environment and way of life, California is like a patient on life support. At the start of summer the state government was so deeply in debt that it began to issue IOUs instead of wages. Its unemployment rate has soared to more than 12%, the highest figure in 70 years. Desperate to pay off a crippling budget deficit, California is slashing spending in education and healthcare, laying off vast numbers of workers and forcing others to take unpaid leave. In a state made up of sprawling suburbs the collapse of the housing bubble has impoverished millions and kicked tens of thousands of families out of their homes. Its political system is locked in paralysis and the two-term rule of former movie star Arnold Schwarzenegger is seen as a disaster – his approval ratings having sunk to levels that would make George W Bush blush. The crisis is so deep that Professor Kevin Starr, who has written an acclaimed history of the state, recently declared: "California is on the verge of becoming the first failed state in America." "

Here's the piece.

Another City Dealing with Budget Troubles

This from the La Habra Police union. They have their own department there, but San Juan Capistrano officials have joined others who contract with the Orange County Sheriff's Department in an effort to get some cost control. The sheriff's contract is about one-third of the city's general-fund budget of $21 million.

This from La Habra:

LA HABRA, Calif., Aug. 17, 2009 – The president of the La Habra Police Association today publicly praised his membership for agreeing to a deal with the city that will lead to an effective 5 percent pay cut through furloughs (104 unpaid hours) and giving up the opportunity to cash in previously accrued vacation time.

“Although difficult, we commend our members, and other city labor groups, for agreeing to tighten our collective belts in order to help the city through our national recession,” said Jim Tigner, President of the La Habra Police Association. “The men and women of the La Habra Police Association have once again demonstrated their commitment to our community by agreeing to this unprecedented move with city officials.”

State, counties, and cities across the nation have been struggling to cope with the greatest economic downturn in our nation’s history since the Great Depression. The housing bubble that burst hit states like California especially hard. Last year, Vallejo (Solano County) became the largest city in California history to file for bankruptcy.

“With this agreement, and our significant efforts toward passing the critical measure on the General Election ballot last November, city employees have shown our collective dedication in working together to solidify our city’s finances,” said Tigner. “Our members have a special compact with the citizens in La Habra in that we are the ones who agree to lay our lives on the line so people may live in peace. In light of that, taking this cut was very tough for our members to do, but it is the nature of people in law enforcement or our military who put on a uniform, serve their community, state or country to do what is right, first and foremost. The Association Leadership recognizes the sacrifices the men and women of the La Habra Police Association have made to something that they see is much greater than themselves, and how supremely honored I am to represent their interests on behalf of the entire membership.” said Tigner.

One City Tries to Take Stand Against Municipal Salaries, Pensions

This just in ...

Citizens of Lodi, California are taking control of the runaway cost of salaries and benefits paid to upper management and department heads. The citizen submitted their initiative on 8-10-09 to the Lodi City Clerk limiting wages and benefits for upper management. Lodi is a community of 60 thousand with an average income of $42 thousand and is shelling out millions in salaries and benefits to management. City manager receives upward of $250.000.00 in compensation.

The current economic crisis has placed extreme hardships on the citizens of Lodi in the form of reduced services, decreased maintenance, and reduced operations of public facilities and programs. City Management has made decisions that affect safety and the quality of life for the people of Lodi. City Workers who perform services to the public have taken cuts and furloughs.

As of July 2009, the salary of the President of the United States is set at $400,000.00, salary of the Governor of California is set at $213,000.00 with the responsibility of the world’s 8th largest economy, 250 thousand employees, and a budget of $132 billion, and State Director of Transportation salary is set at $117,000.00 with the responsibility of $14 billion budget and 23 thousand employees. City salaries need to be put back into perspective.

By reducing the salaries of the City’s highest paid employees can help maintain programs and services vital to the citizens of Lodi. Therefore, to keep spending in line and put taxpayer resources back into services, it is important for all possible safeguards to be put in place to avoid unnecessary spending. With the state budget signed and less money being given back to the cities and counties savings must come from all sources.

There are billions of dollars in excessive salaries and benefits being paid out to government management. The top 50 cities’ managers earn a total of $34 million. The top 50 county administrators earn a total of

$32 million. Multiply this by every county, city, school, college chancellor, and special district and you just found billions of dollars in savings.

Text of the initiative:

*With a YES vote, The People of **Lodi**, hereby ordain as follows: The Responsible Compensation Ordinance.*

* *

WHEREAS, it is recognized that the City of Lodi is funded by taxpayer dollars. The current economic crisis has placed extreme hardships on the citizens of Lodi in the form of reduced services, decreased maintenance, and reduced operations of public facilities.

WHEREAS, those workers that perform the duties which serve the People of Lodi, represented by their respective collective bargaining units, have negotiated in good faith with the City of Lodi and have arrived at any increase or reduction in salary or benefits through agreement between the parties.

WHEREAS, exempt employee benefit and salary increases are controlled by elected officials and the City Manager. Exempt employee salaries can no longer be compared with private sector jobs where salaries are based on a free market.

WHEREAS, as of July 2009, the salary of the President of the United States is set at $400,000.00, salary of the Governor of California is set at $213,000.00 with the responsibility of the world’s 8th largest economy, 250 thousand employees, and a budget of $132 billion, and the Director of the State of California Department of Transportation salary is set at $117,000.00 with the responsibility of $13.8 billion budget and 22 thousand employees.

WHEREAS, it is important for all possible safeguards to be put in place to avoid unnecessary spending. Reducing exempt employee salaries of the City of Lodi’s highest paid employees can help maintain programs and services vital to the citizens of Lodi. Therefore, to keep spending in line and put taxpayer resources back into services, the following shall be put to the vote of the people of Lodi.

a) Henceforth, the Lodi City Council will be prohibited from taking any action; by ordinance, resolution, or otherwise, which increases the salary or level of benefit of any exempt employee. The City of Lodi is prohibited from hiring outside consultants or contract employees to perform the duties of any exempt employee or taking any other action which has the purpose or effect of overriding the content and purpose of this initiative measure. The City of Lodi is prohibited from hiring contract employees or consultants to perform routine administrative or managerial duties or to perform any activities within the current job description of exempt employees that would exceed salary and benefit levels set forth in Paragraphs c) and d). This initiative measure does not prohibit the City of Lodi from hiring consultants to perform services that are not normally done by exempt employees (i.e. general plan).

b) The Lodi City Council shall appoint on even years in the month of January a Salary and Benefit Commission comprised of nine (9) volunteer residents from the City of Lodi. Commission members shall be registered voters in the City of Lodi who were eligible to vote in the most recent City Council election. Members of the City Council and their immediate family members are prohibited from holding a seat on the Commission.

Selection of Commission members shall be by lottery, with lots being drawn at the first regular City Council meeting in January. The City shall post a notice at least thirty (30) days prior to the deadline for selection and shall take all reasonable steps to ensure that eligible citizens are aware of the opportunity to serve. No member of the Commission shall be eligible to serve consecutive terms. The sole purpose of this Commission is to determine the salary and benefits for current Lodi City Council members. With a majority vote from the Salary and Benefit Commission, the City Manager will implement any changes in salary and benefits for current elected City Council Members effective the first day of the subsequent fiscal year. The Salary and Benefit Commission is responsible for holding at least two (2) advertised public meetings. The Commission shall reach a decision and communicate such decision to the City Manager within eight (8) weeks of its first meeting.

c) Salary for the highest paid exempt employee (singular) will not exceed 50% of the salary of the Governor of California set forth by the State Officers’ Compensation Commission. Salary compensation is from all City of Lodi sources including the city of Lodi’s electrical utility.

Any and all benefits for highest paid exempt employee (singular) will not exceed 50% of the highest paid exempt employee’s salary. All benefits for the highest paid exempt employee that exceed 50% of said salary will be paid directly by the exempt employee.

d) Salary compensation for all other exempt employees of the City of Lodi shall not exceed 90% of the salary determined in (c) above. Salary compensation is from all City of Lodi sources including the city of Lodi’s electrical utility. All other exempt employees’ benefits will not exceed 50% of each exempt employee’s salary. All benefits for an exempt employee that exceed 50% of that employee’s salary will be paid directly by the exempt employee.

e) Any exempt employee that provides services exclusively for the City of Lodi electrical utility department will not be subject to this ordinance.

For further information contact: Jane Lea janelea1931@gmail.com

Capistrano Joining Budget Lawsuit Against State

The San Juan Capistrano City Council on Tuesday agreed to join other California municipalities in a lawsuit against the state over money California would snatch from cities.

Under the state's budget, Capistrano would lose nearly $3 million, city officials report. The spending plan would borrow $874,000 from the city, including $750,000 from the general operating fund, as well as $2 million in property-tax revenue from the redevelopment agency. This all on the heels of a couple of years of city cuts because of declining sales-tax revenue.

The council votes to join the lawsuit not knowing what it will cost, but figured enough's enough.

Council to Host Mission and Vision Workshop Aug. 5

From the city:

The City Council on August 5 will host the second part of the Mission and Vision workshop as part of the long-term vision/strategic business plan process.  The meeting is a continuation of a June workshop the council hosted regarding the preliminary draft mission, values and vision statements.

Developing a long-term vision and strategic plan, which is supported by a solid long-term financial plan, is designed to enhance the overall quality of life for those who live, work and play in San Juan Capistrano. It is also a City Council priority.

Council members will prioritize strategic issues developed at the last workshop, give staff direction regarding revised mission, values and vision statements and will begin preliminary dialogue on strategic approaches to issues.  

The public is invited to attend the meeting and provide input.

The meeting starts at 3 p.m. Aug. 5 in Council Chambers at City Hall, 32400 Paseo Adelanto. The agenda is expected to be available online sometime Thursday at www.sanjuancapistrano.org.