Minimum Wage Referendum Expected and Desired - UPDATE

San Diego's 10News is reporting that a campaign to repeal an expected rise in the minimum wage is being organized by the San Diego Small Business Coalition. (I urge you to "like" their Facebook page.)

San Diego Mayor Kevin Faulconer vetoed the measure, but the San Diego City Council is expected to override it. If that happens, Jason Roe, spokesman for the San Diego Small Business Coalition, says he has already begun to fundraise and has "substantial commitments from small businesses." 

Roe says the group is ready to launch a ballot drive to repeal the hike. Some 34,000 signatures must be gathered in a month to get it on the ballot in June 2016.

Meanwhile Council President Todd Gloria is already asking people not to sign the expected petition.  Pretty clear that the referendum fight is game on.  The petition is a great idea that I will support by getting signatures and making donations.

If the minimum wage hike stands, it is going to be a nightmare to have a different wage in San Diego than in neighboring communities.  Enforcement will be tough.  How will the City Attorney collect records from out of town businesses?  Further, such a measure erodes the competitive edge of San Diego businesses at the margins.  The minimum wage hike will only hurt the working poor and punish businesses.  All the energy expended on an issue that only helps a very small 2% of the workforce is all the proof I need that something foul is afoot.  Minimum wage hikes are a back door way for unions to get wage concessions without bothering to bargain or strike.  When some thug tries to stop me from gathering signatures on my petition, I guarantee that they will have been paid by a union.

UPDATE - From the U-T:

The San Diego City Council voted Monday to override Mayor Kevin Faulconer’s veto of gradual increases in the local minimum wage to $11.50 an hour by 2017, starting the clock on a referendum campaign that business leaders have said they’ll pursue.
If opponents can collect the 34,000 valid signatures required for a referendum by Sept. 17, the wage increases will be held in abeyance pending an election in June 2016.

What You Should Be Reading

• The supposed death of the Tea Party has been greatly exaggerated.  
• Meanwhile the left is pinning their hopes of defeating Carl DeMaio's challenge to Scott Peters by tying Carl to the Tea Party.  (I guess its not good enough to actually be LGBT to get support from that community, you have to be the right kind of LGBT.)  
• The VOSD fact checks claims and counter-claims in the Peters-DeMaio race regarding Peters' role in the pension scandal.  While they take DeMaio's claims to task, they also note that Peters' did not in fact solve the problem.  His involvement in the pension mess is surely a liability that no amount of left-leaning fact checking will wash away.  To be fair, I like a lot of the VOSD reporting, despite their clear bias.
•  Having a tough time blogging, research getting tough?  Consider hiring a virtual assistant (VA) for $5 per hour.  Wait, will the city attorney come looking for me if my VA is in India, but I benefit from the work?  (Seriously, I have considered this, as the research and editing is slowing down my writing.)

Wouldn't you rather be doing internet research for me?

Public domain image of 1903 Chicago "sweatshop" workers.

California Primary Results - San Diego

I am leaving early on a trip, but I am pretty pleased with the early returns in San Diego.  In Council District 2, Lorie Zapf seems to have a good chance at clearing the 50% threshold to avoid a run off in November.  Propositions B & C also appear headed for defeat, a huge victory for jobs in here in the city.  I live in the 52nd CA congressional district and it looks like a Peters (D) vs DeMaio (R) match up in November.  Peters is only showing 43% of the vote in early returns, against the Republicans seeking to replace him.  I don't think that bodes well for his November odds.

At the state level, it seems as though Kashkari will beat out Donnelly for the right to face Jerry Brown.  I am under no illusions that the Republican can take back the Governor's mansion, so my support, went to the man who was having an effective outreach and effectively hammering home Jerry Brown's support for the "Crazy Train" aka High Speed Choo-Choo.  Checking other results, I am amazed to see two Republicans in the lead for State Controller at this time, Ashley Swearingin and David Evans.  

Right now I am listening to Scott Peters giving a pretty lame defense of the Bergdahl deal today, but he backtracked with "I wasn't consulted and not sure if it was a good deal."

On the down side, Democrats are still in control of this state.  Also, I didn't vote for Bonnie Dumanis, but she may avoid a run off.  I don't know if Brewer would be so great, but her ethical challenges after 12 years in office deserve closer scrutiny. 

Visiting Carl DeMaio's Campaign

Mrs. Daddy and I visited Carl DeMaio's campaign headquarters today, meeting up with family there.  I got a minute to chat with DeMaio about the campaign. I told him that I appreciated his work on Proposition D and Proposition B.  He related that the effort to reform county pensions in Ventura County had run into problems because of unions trying to block signature gatherers.  A little research on that issue revealed that the Ventura County sheriff had joined the union protestors, which any taxpayer or advocate of free speech should find disturbing.  DeMaio said that "we" had been able to get the intimidation and blocking to stop.  I was not clear as to whom he was referring to, as this was not an interview.

He also discussed the possibility of a future ballot measure to fix pensions state-wide, which would include public votes on pensions.  His take was that politicians get re-elected with union help, in part by approving generous pension benefits.  When the bill comes due, those politicians are long gone, having reaped the electoral benefits, but leaving the taxpayer holding the bag.  This is why the public should get to vote on pensions.  He also said that pension increases should be limited to the increases of the CPI.

Tony Krvaric was also there, it was good to shake his hand.  I congratulated him on his win in the San Diego Rostra mayoral prediction contest.  He described Faulconer's mayoral campaign as "flawless." 

What You Should Be Reading:

• Costa Mesa city council members are involved in a fight with the police union over contract negotiations.  The truth about whether the union and its legal team were behind a false report of drunk driving against a council member may come out soon when the P.I. who phoned in the complaint is deposed. 
• Not Craig Gustafson, formerly of the U-T, who is now Mayor Faulconer's Press Secretary.  I thought he had done a great job covering local politics at the U-T. Congratulations and sorry to see him leave reporting.
• Kathy Hamilton at CalWatchdog.com provides details that prove there is really no money for the high speed choo-choo.

Reporters who want to receive Mayor Faulconer's news releases, please email me at cgustafson@sandiego.gov if u don't get them already.
— Craig Gustafson (@gustafsoncraig) March 7, 2014

CA-52 Getting Interesting - #ACA Toxicity

To see the impact of the health care law's implosion on political campaigns, look no further than my own 52nd Congressional district here in San Diego.  Scott Peters, the incumbent,is expected to face a tough re-election campaign against the well-known Carl DeMaio.  (I supported DeMaio for Mayor last year.)  While DeMaio has a Republican primary to get past, his high name recognition and backing of the GOP central committee makes him the likely nominee.  DeMaio has been hammering Peters on the health care issue, even though the election is a year away.  Peters has said he would support a House Republican bill to allow individuals to keep their health care.  That Peters would be support a GOP bill on this issue is evidence of how toxic the issue has become.  Leading Democrats are attacking Fred Upton (R-MI) over his legislation, doubling down on the President's argument that the public doesn't understand how bad their policies really are and that this is just another GOP plot to undermine the law.  Scott Peters has been supporting the law until recently.

Carl DeMaio

Scott Peters

What You Should Be Reading

• The always brilliant Victor Davis Hanson plots the endgame for the ill-named Patient Protection and Affordable Care Act.  Bottom line, Obama will usurp authority to gut the law, declare victory and move on. 
• Holman Jenkins asks "Why have the stock prices of the insurance industry have enjoyed a huge run-up if the ACA is supposed to reign in special interests?"
• Dean reports on the end game for socialism in Venezuela and it's not pretty. Money quote: In this context, “free-market economists” can also mean “anybody that can rub two brain cells together”.
• Left Coast Rebel dissects the supply and demand of Lithium and its potential impact on future electric car production.  Left wing dreams of an electric utopia may have to be put on hold.

DeMaio Out, Faulconer to Declare? San Diego Mayoral Race Roundup

Carl DeMaio announced today that he would not run for mayor of San Diego, and continue his election campaign in California's 52nd Congressional District.  Sdrostra's "live blog" and facebook page has been a good place to keep up with the news today.  Apparently, Ron Roberts will not run either, not that I even thought of him. Todd Gloria, current President of the City Council and acting Mayor, also announced he was not running via twitter.

STATEMENT | My focus is on cleaning up City Hall and working with San Diegans to move our City forward. -TG http://t.co/48eeEGUs3o
— Todd Gloria (@ToddGloria) September 3, 2013

Tony Krvaric, San Diego County Republican party chair, has all but endorsed Faulconer, saying "He represents the center right which is the tradition of mayors that we've had in the past,. . ."  David Alvarez, current city council member, and Democrat is also "mulling a run."  Fletcher may be in a tough spot if there is too much competition to his left.

My feeling is that this election will hinge on which candidates can turn out their voters in a low turn-out special election.  If there is only one well-known and credible Republican in the race; the two questions will be 1. Who takes second place? 2. Does Faulconer avoid a run off?  Avoiding a run off is very hard, with a 50% threshold needed.

I am very happy to see DeMaio stay in the CA-52 race.  I felt that the seat went over to the Democrats because the Republican party basically gave up on California, but the Democrats continued to push for votes here in 2012.

What You Should Be Reading

• Speaking of the GOP, Hispanics demographic rise will result in the death of the GOP is the conventional wisdom from the 2012 election.  In Texas, the GOP is making inroads.  Ralph Benko explains.
• Dean writes about the other civil rights struggle, that frankly is the most important one facing blacks today.
• KT at the Scratching Post has pointed to a number of articles that point to an impending financial meltdown in Japan.  Don't complain we didn't warn you.
• Anything that pops up about pension reform court cases.  If taxpayers can't shed municipal pension obligations, we are in big trouble.  No real news today.

Weekend Round Up

President To Ask Congress for Authorization for Syria Strike

I am not going to rehash this news.  My take is that Obama doesn't really to want strike Syria, especially without help from the Brits.  There is little upside and all downside for him.  This is classic Obama.  Just as he put the work of passing the ACA on Reid and Pelosi, minimizing his own downside; he can blame the failure to punish Syria for chemical weapons use if the Congress votes against the authorization.  Tough problem solved.  No wonder he immediately went golfing after the announcement.  

Syria: Problem solved. Time to work on my swing.

DeMaio, Faulconer Are the Favorites on the Right for San Diego Mayor

Or so says sdrostra blogger and political analyst Steve Gramm.  His analysis is that DeMaio will receive less support from traditional Republican groups if he backs out of the 52nd Congressional race to run for mayor.  Faulconer could potentially run in the 52nd according to the one of the commenters.  Personally, I hope that DeMaio continues his run for Congress, he already has that campaign momentum going.  In a crowded field on the left, which includes Fletcher and Mike Aguirre, Faulconer would certainly make the run off, if he were the only well-known Republican.  DeMaio is reportedly going to decide and announce what he will do on Tuesday.  Look for a Faulconer announcement shortly after if DeMaio stays in the Congressional race.  I have already endorsed Faulconer, in part because I have liked him as my council member and because I want DeMaio to take back the CA-52 for Republicans. 

Affordable Care Act Heavily Subsidizes the Elderly at the Expense of the Young

But you already knew that.  However, the WSJ performed a public service by closely analyzing the effects of the law on residents of Toledo and concluded that the nature of the law is to so subsidize the elderly, that it will cause them to sign up for coverage disproportionately.  This isn't really news, except for the detailed and fairly irrefutable analysis of the situation.  Meanwhile, your friendly neighborhood federal propagandists are referring to the ACA as "Obamacare."  I don't do that, because it was really Reid's and Pelosi's monster, but also, really?  I expect better from a federal agency.

No one is invincible. Enter your video about why health insurance matters to you & win! http://t.co/gbKleAcdDA #hyavideocontest #ObamaCare
— HHS.gov (@HHSGov) August 26, 2013

I was asked about the prize mentioned:

@BDaddyLiberator @HHSGov What would you win, a "free pass" from the Death panel?
— Doo Doo Economics (@DooDooEcon) August 31, 2013

Turns out that winning propaganda can be worth up to $30,000 in cash prizes.  Does this strike anyone else as creepy?  If you follow the link to the HHS tweet, conservatives come out in force to lampoon this blatant effort.  If there were any Justice at HHS, this would be the winning video:

That's a wrap on the slow news weekend.

State and Local Election Results

I was surprised and disappointed by state and local election results.  Filner's victory is really bad news for the city.  I boldly predict he will undermine the implementation of Proposition B.  Most likely, he will block the city's defense of the legal assault on the initiative by the unions.  His victory was not a landslide, but 3% is still substantial.   He doesn't care that the city will be bankrupt in a decade, he'll be probably be addled or six feet under by then.  We will see how well the real fiscal constraints he inherits inhibit his ability to reward his union supporters.  With Filner winning, it seemed inevitable that Bilbray would lose, but its still very close.  We'll see if a principled conservative can defeat Peters in 2014.  Who is ready for that challenge?

Proposition 30's victory also surprised me.  It's victory defied the trend of tax increases not passing when more than one is on the ballot.  It passed well beyond what polling would have indicated.  Make no mistake, these tax increases will not raise the revenue promised, will not be temporary and will hurt the poor more than the rich because of the sales tax hike.  Hard to imagine that it won with 54% of the vote, but there you go.  How soon will the state hit the fiscal wall?

Most of my proposition recommendations went down to defeat.  A couple of exceptions were the revision of the three strikes law and genetically engineered food labeling.

Results from the state office.  Changed the color of the props to indicate how I did, red, I lost and green my position won:

Proposition Title			Yes Votes	%	No Votes	%
Yes	30	Temporary Taxes to Fund Education	4,967,039	53.9%	4,251,558	46.1%
No	31	State Budget, State and Local Government	3,376,286	39.2%	5,229,659	60.8%
No	32	Political Contributions by Payroll Deduction	3,983,603	43.9%	5,094,492	56.1%
No	33	Auto Insurance Prices Based on Driver History	4,056,302	45.4%	4,879,954	54.6%
No	34	Death Penalty	4,276,463	47.2%	4,787,677	52.8%
Yes	35	Human Trafficking	7,324,721	81.1%	1,701,734	18.9%
Yes	36	Three Strikes Law	6,193,431	68.6%	2,832,602	31.4%
No	37	Genetically Engineered Foods Labeling	4,285,787	46.9%	4,845,291	53.1%
No	38	Tax for Education. Early Childhood Programs	2,493,398	27.7%	6,509,127	72.3%
Yes	39	Business Tax for Energy Funding	5,305,400	60.0%	3,530,537	40.0%
Yes	40	Redistricting State Senate	6,081,071	71.4%	2,431,524	28.6%

Eventually this state will come to its senses, or run out of money.

Questions for Carl DeMaio

Most of the savings from pension reform come from changes in retirement pay rules for current employees. Why did the sponsors include 401(k) style pensions?

Illegal street vendors have drawn criticism and rightfully so. However, would you veto a bill that places additional restrictions on legal street vendors who conform to current laws?

City employees might actually benefit from a 401(k) style plan that they control. Your rhetoric suggests that you are locked in battle with city employees. Do you plan to change your tone to help persuade some of them to vote for you now that pension reform has passed?

I am supporting Carl DeMaio for Mayor, and want to ask him these questions, but have gotten no answer from his campaign.

California tea party Conundrum

As a tea partyer in deep blue California, it may seem that we have limited ability to influence elections. Gerrymandering keeps almost all House, Assembly and State Senate races non-competitive. However, ballot measures and local races still provide an opportunity to make our voices heard and to beat the entrenched labor/big-government establishment. Temple of Mut has provided a public service by previewing the November ballot issues; but I wanted to add a few thoughts on issues and races that matter in San Diego in particular.

Proposition 30. Jerry Brown's "temporary" tax hikes initiative. This is an easy No recommendation from the tea party. But I doubt that the final vote will even be close. Billed as another "for the children" initiative, I think that scam is up. (As satirized in a recent Hitler parody, the voters are wise to the whole "They'll put free hookers and cocaine on our health plan as long as we say it's for the children" line.) The cram down on the high speed rail while the state is going broke isn't going to help this effort. Neither will the report that reveals that the top paid legislative staffers in Sacramento are getting big pay raises. Of course, the bulk of the pay raises are going to the top 1% of the staff, just kidding, I think it is the top 5%. If I were in charge of advertising, I would lead with particular tidbit about legislative staff pay raises in a campaign against the tax hikes. It also helps that another tax measure to increase almost everyone's taxes, Proposition 38 is also on the ballot. Even those making as little as $7,300 will get hit by Prop 38. To be fair about who gets a tax increase, Brown's Proposition 30 also raises everyone's taxes through a sales tax increase.

San Diego Mayor - Carl DeMaio. The SCTRC does not endorse candidates, so this my personal recommendation. With the public employees unions and the California PERBerts challenging Proposition B in court and its attendant the cost savings in court, the city will need a vigorous advocate in the Mayor's office. Even opponents of the measure admit that it will save the taxpayers money. I have no doubt that Bob Filner would seek to gut the legal defense of the measure as well as any implementation. Reforming pensions is vitally important to the long term financial health of the city. Carl DeMaio strongly supported the measure and has been an advocate for the taxpayers in general. He first won my support for his vigorous opposition to Proposition D, in contrast to most other San Diego establishment politicians.

Brian Bilbray for Congress. This stance is also controversial with some of my fellow tea partyers. Despite his appearance at a Repeal Obamacare rally, Bilbray doesn't really light the fires for us tea party types. But I have never before been a single issue voter, but the so called Affordable Care Act has made me one. The ACA is actually an unaffordable sop to lobbyists and special interests that true liberals ought to be opposing, not just those on the right. The 52nd Congressional race is one of the few that matter in California. It is a competitive race. Brian Bilbray has promised to vote for repeal and Scott Peters has endorsed the ACA. How much clearer could our choice be? I am asking tea partyers and libertarians who aren't enthused to get behind Bilbray anyway. I will be donating to him and to Romney and Bilbray on the theory that the ACA will do decades worth of damage to the country if not repealed soon.

DeMaio vs Filner in the Fall

With only 15% of the vote in, I'm calling the mayor's race as DeMaio vs. Filner in the fall. If the polls are to be believed, this works better for DeMaio than a Fletcher match up. However, it means that labor will be providing support for DeMaio's opponent, but I'm not sure the efficacy of organized labor in San Diego after tonight's results.

Proposition B is also winning handily and Walker has won in Wisconsin. I'm a pretty happy camper. Time for some of this (Max take note):


This was the best picture of the bottle, so no crap about the glass.

DeMaio vs Fletcher/Filner or Something Else?

Polling in the San Diego mayor's race has been scant; but Nathan Fletcher's (picture left) decision to leave the Republican party appears to have been shrewd. From the U-T:

A U-T San Diego poll showed DeMaio with 22 percent of the vote, followed by Filner at 18 percent, Fletcher at 17 percent and Dumanis at 8 percent. The survey of 404 registered city voters was taken May 1-2 and has a margin of error of plus or minus 4.9 points.

Conventional wisdom from that article is that Filner, being the lone competitive Democrat in the race is likely to benefit from the line up of two Republicans and one former Republican in the race. My view of Fletcher is that he is closely tied to the Republican downtown establishment, but left the party because DeMaio earned the county GOP endorsement. My fear is that he will knock DeMaio from first place and we will end up with a Filner vs Fletcher match up in November. For this reason, I have donated to the DeMaio campaign early, rather than waiting for November. The barrage of negative advertising against Fletcher may not be working, because it focuses on ancillary issues like missing votes in Sacramento. I don't think the voters in San Diego much care at this point. What would be more effective would be to highlight Fletcher's lukewarm response to protecting taxpayers, bringing up his tepid response to Proposition D, for example.

However, polling from SurveyUSA/KGTV from May 14 had these results:

DeMaio 31%
B Filner 21%
Fletcher 21%
Dumanis 13%
Other 6%
Undecided 8%.

This is a poll of likely voters, which is good, I'm not sure if the U-T article quoted is of registered voters. Proposition B, pension reform, is likely to energize a base of voters friendly to DeMaio. If you analyze the month on month results from the SurveyUSA poll, you might conclude that the negative advertising is having some effect, as Fletcher is down 5% from last month.

We are going to need a mayor committed to implementing Proposition B, which holds a commanding 54% to 22% lead in the same poll. I consider the election of Carl DeMaio (lower right) one of the most important races in the country. If San Diego, know historically for its inept handling of employee pensions, earning it the nickname Enron by the Bay, can get its fiscal house in order; then maybe the whole state isn't beyond saving. My fear is that it will take a monumental crisis to create a climate for change given the union's stranglehold on state politics.

Odds and Ends

I started following Chris Reed on Twitter and where ever he publishes articles, especially on his calwhine.com website. He has written a great piece for the always provocative
City Journal on the issues facing San Diego and California in the next election cycle. A few nuggets.

It [Prop B] would end defined-benefit pensions for all new city hires except for police officers, instead providing pensions similar to 401(k)s. It would prevent pay sweeteners from being added to base salary when calculating pensions, and it would require city workers to pay a bigger share of their pension costs.
. . .
He’s [DeMaio is] also a vigorous advocate of “managed competition,” in which public-employee groups bid against private providers on the provision of government services. San Diego’s version of managed competition—which DeMaio would like to expand upon—so far has driven down the cost of municipal fleet maintenance, street sweeping, and printing. “Managed comp” carries the promise of extending to government—at last—the productivity revolution that has transformed the private sector over the past 30 years.

He also points out how Democrats deal with the unions has led them down a path of corruption and cronyism. One more nugget.

DeMaio’s effort faces ferocious resistance. California is so beholden to union power that the head of the state Democratic Party actually endorsed a policy under which students suffering epileptic seizures couldn’t receive life-saving medicine unless union nurses dispensed it. From the unions’ perspective, DeMaio must be stopped. DeMaio and supporters gathered the signatures to place Prop. B on the June city ballot only after overcoming opposition efforts to intimidate signature-gatherers, including radio commercials warning that signing petitions would lead to identity theft. DeMaio, who is gay, also has faced baiting over his sexual orientation (a rich irony in gay-friendly California).

Mitch Daniels was my 2011 choice to run for President. He had social conservative chops but had said it was more important to concentrate on the budget and reforming entitlement. But he has disappointed me with his support for Dick Lugar. I understand that Lugar helped Daniels get his start in politics, but we need to think about moving the Republican party in a new direction. Here is Daniels' endorsement, notice how he is short on specifics.




Put not your trust in politicians, I guess.

I saw Marco Rubio on the Hannity show today, defending Paul Ryan's Medicare plan in very sensible language. He clearly made the valid point that without reform for tomorrow's retirees, the program will go broke. It's the adult thing to do, reforming medicare, which is why the President isn't participating in the discussion. Rather he sends Geithner to the Hill with this message for Ryan. “We’re not coming before you to say we have a definitive solution to that long-term problem. What we do know is we don’t like yours (Ryan's budget proposal.)” Thanks. Sometimes I wonder if anyone is paying attention to shenanigans like this. Why would seniors think that Obama is going to do anything but raid medicare for Obamacare and let the whole program go hang in the long run?

Dumanis and Fletcher Unveil Education Plans

But who cares? Watching KUSI tonight, there was some story about Bonnie Dumanis and Nathan Fletcher offering up education plans. I don't care. As the news pointed out, this is not a province of the mayor and their will be enough for the mayor to handle without adding education reform to his or her plate. With the city facing tough issues like pension funding, the potential implementation of a new defined benefits plans and ongoing budget woes, Fletcher and Dumanis are focused on the wrong issues. For the same reasons that I am not a Rick Santorum supporter, he isn't focused on the debt and the economy, I can't support Fletcher or Dumanis.

Meanwhile, Carl DeMaio remains the front runner, if the local polling is to be believed.

Quote of the Week - Carl DeMaio's Real Opponents

Over at sdrostra.com, an interview with Carl DeMaio is posted. The money question comes third:

• Which of your opponents do you fear the most? Why?

I don’t see this as a race of me against these three other candidates. My campaign is the same campaign I have waged since becoming a taxpayer watchdog years ago: to clean up the mess at city hall.

My real opponents are the government employee unions and powerful downtown interests that benefit from the cozy system at City Hall at the taxpayers’ expense. They know I will end their taxpayer-funded gravy train, and that’s why they are doing everything they can to defeat our grassroots campaign.

Bolding added by B-Daddy.

I couldn't agree more with Carl DeMaio about who is true opponents are. The author of the rostra article, Tony Manolatos, showed superb judgement in headlining the article the way he did. This also speaks to my long time complaint here in San Diego, that our political choices have been between government that favors big business or government that favors big labor. We need government that favors the taxpayers and average citizens, whether or not that favors particular businesses. An even playing field will ultimately make our city a better place to live.

Breaking news update: DeMaio won the endorsement of the GOP this morning with 71% of the vote. There may be hope for the party. Love Richard Rider's tweet on the subject.

DeMaio Event

Temple of Mut has done a great job of keeping up with state and local issues on her blog. Case in point is today's post regarding Democrats for DeMaio, in which she gets out to meet Carl DeMaio in person at the local Albertson's. DeMaio's reasoned and reasonable approach to union pushback on the pension reform plan is highlighted. Good for Carl for his willingness to engage the public, including his opponents.

To be clear, I have endorsed Carl DeMaio for Mayor, but I have seen nothing to dissuade me from that position. Thanks to Temple of Mut for some intrepid citizen reporting. (Disclaimer: The Southern California Tax Revolt Coalition does not endorse candidates for office, this is a personal endorsement.)

Political Priorities for 2012 - One SD tea party perspective

My day job has become very challenging lately, and may continue to cause light blogging. When I have little time, it concentrates my mind on what is both important and within my sphere of influence. For example, I love following Presidential politics, but as a Californian I am going to little influence on neither the Republican nominating process nor the electoral vote totals. Here are my priorities for this year and how I am feeling.

1. Defeating Governor Jerry Brown's proposed tax increases; highly confident. Getting his execrable budget killed; not so much.
   
2. Getting pension reform passed in San Diego; highly confident.
3. Getting Carl DeMaio elected Mayor of San Diego; optimistic.*
4. Reaching out to left, right and center on entitlement reform and ending crony capitalism; cautiously optimistic.**

Notes:
* The Southern California Tax Revolt Coalition does not endorse candidates, so this is a personal endorsement.
** Kelly, a liberal commenter, comments on why this is important in the comments section on my Saturday post about Rhode Island's Democrat led pension reform.

I hope for a groundswell of support for these goals.

Dang, I can't resist, here is one reason I can't stand Santorum (H/T Temple of Mut):

Pension Reform Qualifies for San Diego Ballot

This is no longer news, but nevertheless important. Carl DeMaio announced that the pension reform initiative had over 145,000 signatures, with 93,346 needed to qualify. It appears likely that the initiative will qualify for the ballot. The furious counterattack by labor on even allowing a vote on the measure has been curious. Clearly they see a huge threat in this initiative. The left of center OBRAG had this to say:

The proposed initiative would eliminate pensions for all new city hires except police officers and replace them with a 401(k)-type plan. It also includes a five-year salary freeze on the pensionable pay of current workers and a cap on future police pensions, among other things. City workers would not be eligible for Social Security under the plan.

The proposal is strongly opposed by organized labor, who characterize the plan as a punitive measure that places the solution to the city’s fiscal crisis unfairly on workers. Labor groups went so far as to send volunteers to popular canvassing locations to argue their point of view after receiving reports of petition gatherers making significant misrepresentations about the petition that they were asking people to sign.

A fair characterization, no doubt. OBRAG also asked a question that perplexed me.

Even though supporters of the ballot measure have known for several weeks that they’d passed the threshold for needed signatures, the campaign has continued using a “we’re desperate” meme. Why? It turns out that signers information was being shared with the DeMaio Mayoral campaign. It’s probably illegal, but unlikely that the consequences will outweigh the benefits.

I'm not sure I believe that, but I'd like to hear from DeMaio and the organizers as to why the tone of desperation. I went so far as to predict rough sailing, based on my reading of DeMaio's Facebook posts.

Meanwhile, the arguments against placing the initiative on the ballot by San Diego City Beat were that it would pass if it got on the ballot. From the comments.

Bob, I think you missed a key part of the article. See the end of the first paragraph. If the measure makes the ballot, it'll pass, because it's a complex issue for the average voter to process. There are a number of misleading statements being made by the pro CPR folks. We think the debate needs to happen now.

Bradley Fikes responded on sdrostra.

The CityBeat interpretation is that that the pension reform measure will pass if it qualifies for the ballot because it’s too complicated for voters to understand. (A nice way of saying the voters are stupid and gullible).

Comments and articles from both sides of the issue make me believe that even if the initiative qualifies, there will be millions more spent by both sides. There will also be some carping about how expensive and unseemly all the spending is. Too quote Dean, "Democracy is, like, hard."

Ultimately, the question is whether 401(k) pensions are fair. The left's argument is that just because you as a private sector worker have a pension subject to the vagaries of the stock market, it doesn't mean you should make government employees suffer that injustice. Some flaws in this thinking:

• 401(k) plans don't have to invest in the stock market. My own plan is only in the market 65%.
• The new generation entering the work force will learn out how to handle this, in fact they already are. My 22 year old son has a 401(k) as well. We have discussed dollar cost averaging and sector averaging and balancing a portfolio. I have faith in their ability and intelligence. I wish I had thought to start investing at that age.
• Workers will own their own pensions, and won't be dependent on politicians and union bosses to ensure that they receive pensions promised.
• Over the course of twenty years, investing in a broad basket of stocks will produce safety and high yield. The market performance of the last few years is part of the normal up and downs.

Look at this graph from visualizingeconomics.com


Most 401(k) plans have the investor re-invest dividends. There isn't a 20 year period when you would lose money when re-investing dividends.

So why do the unions and left oppose? They fear the loss of power, because the average employee won't need them anymore.

San Diego Taxpayers vs Leftists and Unions - UPDATE

Lots of local political news in San Diego today, revolving around the struggle to reign in the cost of local government, much of it involving Carl DeMaio. First, DeMaio announced that the "fair and open competition" measure had qualified for the ballot in an article on sdrostra.com (Full disclosure: I sometimes cross-post there, also, I signed that petition.) This measure would enjoin the city of San Diego from entering into Project Labor Agreements (PLAs) as a condition to allow bidding on a contract. PLAs generally require agreed upon rules about union participation, prevailing wage rates and other working conditions for each city construction project. See my earlier description.

Later in DeMaio's rostra article, he mentioned that of course, the unions are counterattacking at the state level. "An important note: Union-backed members of the State Legislature have introduced legislation which would overturn local bans on PLAs."

Second, I learned via a tweet from councilmember Lorie Zapf, that the city council had voted to move forward on managed competition. I learned from other sources that the Miramar landfill will go through the process. As Zapf points out, the city employees may win the competition, so I don't know why there is such hubbub from labor and environmentalist groups. OK, I do know, but the taxpayers should win. If this works like the federal government's process, the city department affected may be allowed to present a plan for reorganization that would result in lower costs to the city by shedding excess jobs. If the city employees win the competition with a "most efficient organization" concept, then we still win through reduced costs. From Craig Gustafson in the U-T:

The landfill operation is the latest — and most controversial — service to be placed under managed competition, a process that has generated passionate debate at City Hall since voters approved it in 2006. It allows private firms to compete against city workers to provide certain services, with the goal of reducing costs for taxpayers no matter who wins the competition.

Of course the labor unions and enviros are opposed. Their argument that the city will be liable for the inevitable unsafe practices of the private operator are of course crap. The contracting process can require that the winning bidder carry liability insurance that would survive a bankruptcy.

The debate was apparently not without acrimony, even among those voting in favor. A tweet from Craig Gustafson (which didn't make it into his U-T article) said that Tony Young gave Carl DeMaio a scolding over his handling of the debate. Waiting to see hard news on what that was about.

On the pension reform front, I am concerned that the required signatures won't get gathered prior to the mid-October deadline. No new news, is probably not good news. The last I checked, the initiative was 30,000 signatures short. This morning on the radio, I heard the local firefighters union advertising against the initiative. Their basic argument is that no young person will want to become a firefighter because the pension will be so bad, so we will have all these really old firefighters trying to put out fires, but they'll be too old to lift the hoses. Really? I think in this economy, which looks to continue its present pathetic course for some time, plenty of applications will be received for firefighting positions. Besides 401(k) can be better for employees anyway. (I know the city workers don't get social security, but that's going to become a straight up welfare program anyway.)

Finally, the student journalists (or should I say pseudo-journalists) at the Mesa College newspaper printed these lies about the pension reform measure, as if this were straight reportage:

Yet the changes DeMaio is proposing will completely wipe out pensions for people who are already receiving it and for the city workers who are due a pension once they retire, it will also make them ineligible to collect social security. Instead a forced 401K will replace the pension, which will likely leave them with less than they are currently getting.

Read the measure here, and show me where people who are already receiving a pension will be wiped out. If this is the standard for journalism in our colleges, then the MSM is clearly on a clear path to oblivion. I submitted the following comment to the Mesa Press, which is awaiting moderation:

The statement that the pension reform will wipe out pensions for people already receiving them is flat out incorrect. Nothing in the measure changes existing pensions, read it for yourself: http://www.realpensionreform.com/home/index.php?option=com_content&view=article&id=78&Itemid=93.

Further, Section 10 of the U.S. Constitution prohibits such changes to contractual pension obligations. "No State shall . . .pass any Bill of Attainder, ex post facto Law, or Law impairing the Obligation of Contracts, or grant any Title of Nobility." This applies to cities as well, as creations of the states. Please perform basic research.

I'll let you know if I get published.

UPDATE

My comment is still awaiting "moderation." You have to wonder about the teaching for journalism these days.

Local Roundup

I thought the grocery unions might be on strike at the time of this writing, and they still might by the time you read this. However, a 7:10 p.m. deadline came and went today without a strike. This is great news, and perhaps a strike can be averted. Despite my antipathy for the union position and belief that they will do immense harm to themselves by striking, a strike will be bad for the region given all of our other economic stress. From today's U-T:

"Our workers will stay on the job until at least midnight, and possibly longer if negotiations are moving ahead," Mike Shimpock, spokesman for United Food and Commercial Workers Local 770, told The Associated Press.

This sounds like we might catch a break with some good news.

Carl DeMaio has come up with the single most brilliant fund raising idea I have ever seen for San Diego. He is hosting a fundraiser at Phil's BBQ, with the tagline (from his Facebook page):

Skip the line at Phil's BBQ -- and support our campaign for Mayor! Hope to see you Tuesday!

I have to give DeMaio kudos for making good use of Facebook and Twitter in his campaign. I follow him on both forms of social media. He has been effective. Also, skipping the line at Phil's is pretty close to going to heaven. I love Phil's but seldom like to brave the line, often opting for take out instead.

Carl DeMaio's other big effort, besides running for mayor, is getting the pension reform measure on the ballot. The unions have tried to undermine the effort with radio ads falsely implying that a petition signer might be the victim of identity theft. The U-T Watchdog (one of my favorite local sources) checked out the ad campaigns.

The Watchdog set out to determine who was behind the ad.

The domain for the group’s website is registered to the same address and phone number as the State Building & Construction Trades Council of California, a labor union coalition. The council’s president, Bob Balgenorth, said the identity theft group is separate but he financially supports the effort, helped to organize it, and believes the concern is real.

. . .

Beth Givens, director of San Diego-based consumer advocacy organization Privacy Rights Clearinghouse, said, “The ad is a clear case of dirty tricks. Signing your name and address to a ballot petition does not put you at risk for identity theft. They are using fear mongering to attempt to suppress people who do sign ballot petitions.”.

Meanwhile, the fact that DeMaio continually pitches the effort leads me to believe that the effort may be in trouble. Right on cue, I found the following U-T article headline:

Pension petition drive faces challenges

The article discusses the difficulties facing the drive.

It’s widely viewed as a slam dunk for passage should it appear on the June 2012 ballot, but that may not happen because of the high degree of difficulty in collecting the required 94,000-plus signatures from registered city voters in the six-month window provided under election law. Adding to that burden is the strong opposition from local labor unions that are admittedly putting up as many roadblocks as possible to thwart the effort.

I agree with the assessment that the proposition will pass if it gets on the ballot. If you want to contribute money, you can visit the pension reform web site.

Meanwhile, DeMaio and Dumanis, the two leading Republican candidates, skipped the mayoral debate Saturday at Liberty Station. As expected, Filner came out against pension reform, with Fletcher supporting. I hope DeMaio doesn't skip such events indefinitely, because the public needs to see the candidates airing out the issues. I found it interesting that medical marijuana has surfaced as somewhat of a hot topic, because it is not high on my list of priorities, although I support decriminalization in general. Good to hear that there was no appetite for taxpayer funding of a new stadium.

That's all for the weekend political news. One last recommendation, if you go to Phil's for take out, get their early and have a beer at their bar, they have a pretty decent lineup, including some good local selections.