Tea Party Ballot Measure Absolutely Crushed by Ohio Voters

An overhaul of Cincinnati’s pension system backed by the Tea Party was thoroughly crushed on Tuesday. Cincinnati voters rejected the charter amendment, known as Issue 4, by a 57-point margin.

Issue 4 was placed on the ballot by a private group known as the Cincinnati for Pension Reform Committee. It would have required the city to pay off its $872 million unfunded liability in the current pension system within 10 years, or find cost savings or new revenue elsewhere to make up the difference.

Making up that huge gap, exacerbated by the 2008 financial crisis, is nearly impossible in 10 years. That’s the point: Issue 4 was a barely concealed attempt to force cuts to public services in Cincinnati, and generally pit the city’s citizens against the workers who make it run.

The city is already taking steps to address the $872 million liability in a number of ways–and as with most cities, the public workers themselves are bearing the brunt. Issue 4 would have put those changes on steroids, and would have lead to either tax increases or cuts to public safety and city services: closed firehouses, slower emergency response times, and staffing shortages when we need help the most.

It’s no wonder then that opposing Issue 4 united unlikely allies: the Chamber of Commerce, AFSCME, firefighters, and the editorial board of the right-leaning Cincinnati Enquirer. “Today’s vote will be heard beyond Cincinnati and sends a message for those on the ideological extremes who think it is ok to impose their agenda on an entire city,” said Peter Linden of AFSCME Ohio Council 8, “Had this passed, outside money and political extremists would have cost Cincinnati taxpayers more money, with less services.”

It’s been two years since Ohio voters of all political stripes overturned Gov. John Kasich’s Senate Bill 5, which stripped collective bargaining from over 300,000 public workers. It’s been one year since Ohio voters chose pro-worker Senator Sherrod Brown over the Tea Party-affiliated Josh Mandel. Since that time, the effort to get a so-called “right to work” on the 2014 Ohio ballot has faltered, collecting less than a third of the signatures needed in 20 months.

It’s time that the corporate-backed anti-worker forces in Ohio get it through their heads that Ohioans are interested in more jobs and a stronger economy; not fewer rights at work, fewer public services, and attacks on the workers who are already making the most sacrifices.

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1 Victory on Local Pensions, 5 Battles to Watch

Pension battles are heating up in cities across the nation as conservatives and Republicans are pushing to strip public workers of their retirement plans, often with little or nothing offered as a replacement. The primary argument, although a false one, is that these pensions are “too expensive” and that during times of fiscal woes, cities can’t afford them. In reality, these plans are often little more than veiled attempts to abandon commitments to workers and shift spending to more conservative priorities.

Working families had a victory in Tucson, Ariz., this month when a judge threw an initiative off the November ballot after it was determined that many of the required signatures gathered to put the question before the voters were improperly gathered. The initiative would’ve eliminated the city’s pension plan and replaced it with a 401(k)-style plan.

While there was a victory for working families in Arizona, pension plans in numerous other cities aren’t quite as safe. Here are five cities to watch as pension plans become a more prominent target of conservatives:

1. Cincinnati: A group of mostly out-of-state tea party activists, including the Liberty Initiative Fund from Virginia, succeeded in gathering enough signatures to put an initiative on the Nov. 13 ballot that is very similar to the one that just failed in Tucson. The plan, if passed, would eliminate the city’s pension fund for any future hires, replacing it with 401(k)-style private funds directed by individual employees, effectively privatizing the pension system. Many of the city employees who would be in the new plans are not eligible for Social Security and would have no safety net to fall back on if the stock market did poorly or they failed to successfully manage their new accounts.

2. Jacksonville, Fla.:  The Pew Charitable Trust is partnering with the John & Laura Arnold Foundation and is expected to promote what is called a “cash balance” plan to replace the city’s current pension plan. If the plan mirrors what Pew proposed in Kentucky, it would amount to a significant reduction in retirement savings for future retirees, who would get a set cash amount based on years of service. This measure has not been officially proposed yet.

3. Memphis, Tenn.: The mayor’s office is proposing a series of pension changes that the local Fire Fighters (IAFF) call a barrage of attacks on workers. The proposed changes include setting a minimum age to receive retirement benefits, reducing benefits for employees who take early retirement and using a salary average to determine pension benefits.

4. Phoenix: Citizens for Pension Reform is gathering signatures for a ballot initiative that would switch the city’s pension plan from a defined-benefit plan to a defined-contribution plan and capping potential benefits for current employees. The switch, similar to the proposals in other cities, would amount to a benefit cut.

5. Tulsa, Okla.: The mayor is also suggesting making the change from a defined-benefit plan to a defined-contribution plan. The change would affect only new employees and would not include firefighters or police, who are enrolled in a state-managed retirement system.

Photo via Arizona AFL-CIO on Facebook

Reposted from AFL-CIO NOW

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