Alameda County

The story quickly made its way around the Internet and blogosphere, “Local California official Susan Muranishi to make $423,000 a year for the rest of her life.” Of course the headline could have omitted California and everyone would have known that it was a story coming from California.  

I don’t know Ms. Muranishi and from all accounts she is a tremendously loyal and effective public servant who has put in four decades of hard work for Alameda County.  She is absolutely due a generous retirement. Of course her retirement is far more than generous.  According to the SF Chronicle her retirement includes:

• $24,000 in “equity pay” to make sure she makes at least 10 percent more than anyone else in the county, even in retirement. 
• An annual performance bonus of $24,000, even in retirement. 
• Another $9,000 a year for serving on the county’s three-member Surplus Property Authority, even in retirement.
• $54,000 a-year in “longevity” pay for having stayed with the county for more than 30 years, even in retirement. (San Francisco Chronicle)

The icing on the cake is nearly $9,000 per year car allowance which is equivalent to $750 per month or enough money to make a payment on a luxury automobile, or even two very nice automobiles. It’s a remarkable package and completly senseless. There’s no need in this space to go further into the economic mess that California is in.  The politicians answer of course, statewide and in local government, is to raise taxes or in the case of Stockton to actually declare bankruptcy. 

So what is the real solution?  The hard truth is that packages like this are complete unsustainable. My guess is there are numerous future retirees, not just in Alameda County, who will soon be retiring and enjoying similar benefits.  Meanwhile the current economic programs and rising tax debt are sending entrepreneurs, wealthy individuals and business owners fleeing the state for other locals with friendlier tax rates. When taxes go up the public finds any way possible to not pay those taxes.

The reality is that California is heading for a Wisconsin style showdown.  In the well publicized Wisconsin case Governor Scott Walker took on public employee unions in a hard fought and bitter battle and was victorious. Walker’s legislation to restrict the bargaining powers of the unions and making membership optional greatly restricted their ability to organize. Two years later Walker is still in office after fending off a recall and he’s helped turn around the state’s economic future. This all happened in a state, much like California, that has a tradition of liberal and progressive politics.

Is what happened in Wisconsin the answer?  Perhaps it is.  There is one thing that is abundantly clear.  The State of California can no longer deal with gaps in state and local budgets by simply raising taxes.  Retirement packages like the Ms. Muranishi’s are completely unsustainable and frankly unnecessary.  California, both statewide and within local government, needs real leaders to stand up and have a frank and realistic conversation.  It’s time to stop passing these issues to future generations.