Also in this playlist...
This transcript is automatically generated
-- out of the West -- a controversial new plan for a California city with big money problems right now San Jose cannot pay the benefits it -- the city workers so what's the new plan.
And why are some people trying to stop it.
Griff Jenkins hit the ground in San Jose from.
No one here.
In San Jose the capital of Silicon Valley ever expected the kind of financial struggles that the city has been plagued with.
For the last few years but the harsh reality is they facing three billion dollar unfunded pension liability in no money to pay for it.
In as many people asking the question.
Our -- the next Detroit.
We're a long ways from becoming -- -- because we take an action or the last couple years some Bridget drastic action we -- our employees' pay by 10%.
We unfortunately -- off a bunch of people shrunk the workforce that's given -- a cushion that we get here.
Well and -- You know a lot of -- It's Trace back to increases in the benefits that came in the late 1990s.
That the statewide level.
That in turn set in motion.
A situation where unions up and down the state -- We're pushing their own city councils to match those benefits.
Then the the investment returns that were supposed to make those benefits free didn't materialize.
And now you have.
Multi billion dollar liabilities that somebody's got to pay for.
You've got roughly three billion dollars in unfunded pension liability.
And of the way to pay for it if you could do anything and everything you wanted to what's the plan.
-- former should have to deal with the fact that costs.
Are extremely high.
The benefits that we are locked into.
Are too expensive we can't afford them and employees can't afford them so you have to deal with the cost of the benefits.
That's what we've done with our -- measure was approved by nearly 70% over voters.
We set -- a new level of benefits for new employees.
And we're making our current employees pay more for their benefits a lot more and given him a choice to go to a lower cost benefit plan.
Pension reform is necessary however the way that the mayor and the majority of this council is gone about it has been very damaging to our city and hasn't been collaborative.
And it's really cause -- -- upon a disrepair.
51 of all scaring off many of our employees but more significantly -- that really hasn't brought the savings that they pump.
It's the worst pension plan being offered in the state of California.
And as such we don't expect these these officers that we hire in the next few years stay very -- they'll go to other agencies.
We don't have -- -- patrol the streets.
And so that's why we can't respond to burglaries that's why we have -- graffiti -- man but that's what we have homicide rates now from decades tied for the third -- -- It's because we're not doing enough to work together as a city and it's not responsible for any elected official in the city to throw around Detroit -- -- and NEC.
That's gone to -- -- because there issues we're much different.
There's enormous amount of resistance or public employee unions have filed lawsuits and administrative actions we get seven lawsuits and paid administrative actions I believe.
All trying to stop us from making changes any changes.
To the way we deal with retirement benefits if we're not successful with the reforms will have to go back to cutting services and raising taxes to cover their skyrocketing cost of benefits we don't wanna do that.
Filter by section