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There is a dramatic vote in California last night so focused on Wisconsin let's go further west.
On the first of its kind pension reform.
Voters in -- California cities overwhelmingly.
Overwhelmingly approving a measure.
Took cut the retirement benefits that were promised to thousands of city employees.
It is a move that could now pave the way for similar outcomes in cities across the nation.
And this is in one of the bluest states in the country.
Michael Reagan is chairman of the -- group and Californian.
Michael thank you for being back with us this is a big deal because sometimes it usually when they talk about doing pension reform they say.
On a go forward basis the new people being hired the new cops -- new firefighters.
We're not gonna give -- -- lavish punch -- -- -- but this dealt with folks who are now retired and now working and had received these promises.
And it's now saying you're not gonna get what you were promised.
And there are reasons for doing it but is it fair.
All -- and this is huge -- -- California.
San Jose be one of those cities who have had voted to cut back pensions San Diego -- has already been hired.
Howard's hit it will be -- other San Jose is not a conservative area.
It is a very liberal.
Area of this state to northern part of the state and to think -- 70% of the voters up there.
Voted to cut the pensions of those people already at work think about this way in order -- 70% of the people to vote for that.
They had to grab many many union people who in fact voted to cut their own pages because they understood.
That Sacramento is not getting it done the California to take back our state one should be a time through the people.
Is incredible when you think about that -- mean.
That union members would be voting to slash their own pensions.
And we get emails from people who word counting on these pensions who say.
This is something I paid into the pension but right in this isn't a taxpayer gift to me I paid -- and now I want my money back.
So you know this isn't that palatable to a lot of folks although the -- as -- said he was overwhelming 66% approve it how -- -- -- -- -- -- -- -- -- But you looked -- the pensions what would that pain in San Diego back in 19992000.
45 million dollars you're going -- -- now it's over 240.
Million dollars a year in pensions going out.
And when you're driving -- car in California everybody needs -- SUV four wheel drive because the roads are absolutely.
In this state -- matter where you go outlet were in the same position of San Jose and San Diego we need that pension reform here.
The teachers union is 59 billion dollars in the rears when it comes to pensions in the state of California what five.
Hundred billion dollars -- -- through the whole state of California but did this is a huge issue in the state.
And it's a huge opening for Mitt Romney if -- -- in and grab it because I think he puts California in play.
The 2012 presidential election.
Think you about a site -- Monday ahead.
No -- I -- I'm gonna get our economy I wouldn't I wouldn't have bet that San Jose would be voting 70%.
To cut the pensions of those who were already working -- any -- -- -- California go read it in the presidential election you glean that from this vote.
I tell you I glean the fact that the door is open for Mitt Romney to grab hold what happened Wisconsin to grab hold what happened in San Diego.
And San Jose.
I tell you we will not win in California.
If the presidential candidate refuses to come to the state of California.
And campaign here he needs to come -- and campaign and now he's got a great issue in the state of California to campaign on because everybody understands it.
He stays away your right.
But it -- here could make a difference.
So what about apartment presidential politics.
When you have these kind of margins 7% favoring this in San Jose as you point out not exactly conservative bastion.
Does this inspire other cities in other states across this country.
To implement similar measures to try to close their state budget gaps.
Actually right I mean last night what happened in San Jose has seen Diego was as huge as what happened to Wisconsin.
On the recall Scott Walker.
But nobody saw what we're doing here because you're paid attention Wisconsin.
But -- it does it opens the door it says that those other cities and states grabbing the same problems that we're having here.
That the people get behind you if indeed you put -- issue out there they can get behind Patrick this is the big issue for the Republicans for conservatives.
For Mitt Romney to get behind average looking for an issue.
For 2012 other in the same stuff we've been talking about for years we lower tax and you get fifth we -- back -- you get -- Now you've got a real issue a real issue with these pensions -- and the unions took it on the chin last night.
And I hope they take it on the chin again in November.
In two states have just wanna point out he's in any kind of pensions in some cases 90% of -- Of your existing salary for the rest of your life tax free so that's one of the reasons -- start paying attention that Michael Reagan thank you.
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