Mary Discusses Privatization, Public Pensions
LOCAL GOVERNMENT, SHASTA COUNTY
August 21st, 2009
![Shasta_VOICES_Newsletter_July_2009[1]](http://movetoredding.com/files/2009/08/Shasta_VOICES_Newsletter_July_20091.jpg)
Local business groups funded a study of privatizationof public services in Shasta County. Mary Machado of Shasta Voices prepared the report which will be released Monday. Mary met with Realtors to highlight some of the findings contained in the report.
First, Mary met with administrators from City of Redding, County of Shasta and union representatives to hear their thoughts on privatization as a way to potentially save taxpayer dollars and bridge the ever-widening budget deficit. Perhaps in response to Mary’s efforts, Redding formed a committee composed of 5 citizens and all 5 city council members to explore privatization. Ironically, the city council will be the ones to review/approve their own recommendations. Very odd!
Mary cited Rancho Cordova, a new city east of Sacramento, as an example of a city that decided to privatize most city services except police protection. They are a model for the cost efficiencies of privatization according to Mary. They had a distinct advantage while forming their city in 2003 looking around at what works and doesn’t work with regard to structuring city government.
Mary demonstrated how a public employees salary cost pales in comparison to the total cost for that employee when health and retirement benefits, Workman’s Comp and other perks are added in. The total cost is nearly twice the annual salary. She used the Redding Convention Center staff salaries for this example. The city has had to kick in more than $1 million/year to keep the convention center in the black. She made the point that the center is only used 40% of the year and sits empty the rest of the time.
Pensions for police officers were enhanced to encourage early retirement because these officers were not as capable to carry out their duties as they neared their 50’s. The 3 at 50, or 3% of your salary for each year worked means a police officer can retire with nearly 90% of their highest salary after 30 years of service. One trick commonly played by those contemplating retirement is to convert sick time, deferred comp time and accrued vacation time just before retirement to inflate their lifetime pension. Pensions are based on the final year salary. This incentive has worked better than expected-many officers took early retirement and received generous payouts.
Mary also shared a list of local city and county employees that have pensions over $100,000. Some of the names were familiar like Mike Warren and Bob Blankenship. Others were not. Statewide, their are nearly 5000 public employees living comfortably on six figure pensions.
Mary has scheduled a lunch and learn seminar for September 24th where many speakers will discuss and answer questions regarding privatization.
Here is a link to the report:
http://shastavoices.com/Home_Page.html
530-224-6767 or 530-941-7492
BRAD GARBUTT
REALTOR/BROKER ASSOCIATE
REAL ESTATE PROFESSIONALS GMAC
CORNER OF COURT AND PLACER IN REDDING
QUARTER CENTURY LOCAL REAL ESTATE EXPERIENCE
Mary needs to do her research better. In the City of Redding at least you cannot convert your sick time, vacation, etc and boost your last years retirement. You can cash it out which is not really wise since the government will tax you heavily. If you choose to cash it out the extra income is a one time payout and does not go to raise your highest years salary same as overtime which is not counted towards your highest year either.
Most people choose another option which is to deposit the entire value or portions thereof into an account that is then used to pay for a portion of their monthly medical insurance premiums. This amount once deposited becomes property of the city and if the retiree dies or does not use it all before they reach Medicare age it does not go back to the retiree. This is a delicate guessing game where one must balance the amount deposited with the amount needed to pay medical premiums even if they go up and pay them over a period of years. Too much money you are throwing it away, too little and you run out.The advantage to the retiree is that the medical savings account allows them avoid paying taxes on the amount deposited.
Perhaps Mary made an error, or perhaps she chose to present it this way as it better fit her group’s agenda.
What are Ms. Machado’s credentials for doing research studies, i.e., graduate degree(s), field of study, methodology and survey coursework etc?
Sounds like both of you would prefer she not study these areas of public government. Perhaps she has hit a raw nerve with some public employees. No conclusions have been reached, this is just a beginning point. Mary also acknowledged that privatization does not save tax dollars in every instance. She used the new library as an example of privatization that does not save money but has increased access through longer hours of operation. This is a trade off-tax dollars for longer hours the library is open to the public.
Ahh yes cast stones instead of provide answers or dialogue. My observations of errors in her report are valid, and the second posters question is valid as well.
A “study” provides sources for its data, otherwise any information provided is just the opinion of the author. This is a basic, fundamental, foundational aspect of any study. Any high school student understands this.
It is obvious you just want to use your page for propaganda and not discovery or discussion. It is your page after all so have at it.
Mary needs to go to the convention center @ 2 am when the setting is changing from an open floor dinner setting to a full theater setting for a next days performance! Sometimes this must be done in a 4 hour period of time. She has no idea what goes on behind the scenes. It takes a great amount of training, experience and teamwork to be able to due the change overs. In the last 10 years the staff has lost at least 85 years of experience. There is no way you can bring a new private company in and accomplish this. The setting is unique and one of a kind. Leave the dedicated staff alone. I represent 15 years of that lost experience. It is misleading that it is only used 40% of the time. It takes time and money to do the change overs, clean and do maintenance. I would say 95% of the maintenance is done in house.