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Generous Sick-Leave Cashouts for Retirees Cost San Jose, California, Millions

Excerpt: [San Jose public employees benefit] from city policies that are under scrutiny as San Jose confronts staggering budget deficits: letting longtime employees cash out unused sick and vacation leave when they retire. The policy cost taxpayers $7.8 million in 2008, up from $5.5 million the year before, according to pay data requested by the Mercury News. That's about one-tenth of next budget year's projected $78 million deficit. City officials say the benefit exceeds what government officials get elsewhere, not to mention private-sector employees where such large cash-outs are unheard of.

California Pension Reform Goes Before State High Court

"The high stakes case tests the so-called California Rule, the legal precedent that forbids California government agencies from reducing retirement benefits without offering workers some kind of compensation to offset a loss in income. If the court sides with [Gov. Jerry Brown], unions worry that future city managers and governors will be emboldened to cut benefits they promised to their workers."

Future of California Pension Reform Now Up to State Supreme Court

"Two appellate courts recently ruled that state lawmakers may alter retirement benefits for current employees.... That's a radical departure from decades of rulings suggesting pension benefits could not be reduced.... Whether the Supreme Court agrees will profoundly affect California lawmakers' ability to slow soaring retirement costs strangling state and local governments. It also might enable practical unions to negotiate changes for current employees, depending upon how broad the decision is."

Fodder for Both Sides in Nonpartisan Review of California Pension Reform Measure

"California's nonpartisan Legislative Analyst's Office [LAO] ... released its review of the public pension reform initiative proposed by former San Jose Mayor Chuck Reed and former San Diego City Councilman Carl DeMaio ... Opponents were hot out of the gate with a statement noting that the LAO found there's 'significant uncertainty as to the magnitude, timing, and direction of the fiscal effects of this measure and its effects on current and future governmental employees' compensation.' ... But DeMaio and Reed followed up with a statement saying the LAO had confirmed 'that the mandatory requirements of the measure would produce "significant savings." Even better, in addition to what is specifically mandated by the measure, the LAO confirmed that voters would have new powers to add to the savings.' "

Moving Some Public Workers to Obamacare Could Save Billions

"Taxpayers could save almost $12 billion a year nationwide if two segments of America's public employee sector -- retirees under 65 and low-income government workers -- were moved to coverage under the Affordable Care Act, [a recent] study found.... [The author] acknowledged that the conclusions would be vigorously challenged by employee unions across America whose benefits are covered by labor contracts."

San Jose to Appeal Court Decision Overturning Pension Reforms

"Both the city and the unions are looking for a better outcome in the appeals court. The biggest war -- over whether cities could force existing employees to pay more toward their pensions, as Measure B called for -- was won by the unions the first time around. The judge still did side with the city on 10 of the other 14 provisions of the measure, which combined would still allow San Jose to save tens of millions of dollars per year. That has unions signaling an interest in an appeal, as well."

Slowed by Judge's Ruling, San Jose Delays Key Part of Pension Reform

"In the latest setback for San Jose's landmark pension reform, city officials have agreed with their employee unions to wait at least another year to implement certain pension and pay cuts ... The provisions of Measure B that required existing employees to pay more into their pensions had been scheduled to take effect July 1 after being delayed previously."

Settlement Talks Brewing in Landmark San Jose Pension Reform Case

"After years of intense fighting, the city and its employee unions are discussing a settlement of at least parts of a pension battle that has divided San Jose over key issues ranging from taxpayer costs to police staffing. The settlement talks over Measure B pension reforms ... have an outside shot of ending a landmark court clash that leaders across the country are watching as similar pension feuds bubble up from coast to coast.... An agreement might require another ballot measure as soon as this November."

Hospitals Pressured by ACA to Slash Costs, Improve Quality of Care

"The [ACA] also encourages doctors and hospitals to form 'accountable care organizations.' These networks of providers -- including primary care doctors, specialists, hospitals and home health care services -- work together to coordinate the patients' care. It's a different health care model than the 'fee-for-service' system that exists in the U.S. today -- in which economic incentives are built around providing more treatments, not fewer."

California Obamacare Enrollees Make Up Nearly a Third of Nation's Total

"Through November, a total of 109,296 Californians enrolled in a plan, according to Covered California officials -- almost one third of the nation's 364,682 total enrollees reported by the federal government the day before. During that same two-month period, 179,000 individuals qualified for the expanded version of Medi-Cal, the state's health plan for the very poor. Of the 109,296 enrollees who have signed up for a plan under the exchange, the majority -- 93,813 -- qualified for subsidies; the balance of 15,483 were unsubsidized."