Barbed Wire - February 10, 2012
Pension Reform Group Pulls Initiative/Details of Governor’s Plan Unveiled
The Sacramento-based group, California Pension Reform, suspended its efforts for a ballot measure to enact sweeping public employee pension reforms, citing difficulty in raising approximately $2 million to gather signatures for a November ballot. Many of the components of California Pension Reform’s measure, however, have been incorporated into Governor Brown’s proposed 12-point pension reform plan, of which specific language proposals were released late last week. Among the highlights of the Governor’s plan are provisions for: 1) equal share of costs for retirement benefits between employees and employers – both for new and existing employees; 2) a hybrid plan for new hires that combines a defined contribution plan with a defined benefit plan with revisions on various formulas pertaining to the defined benefit portion; 3) calculating retirement benefits based on a 3-year average of compensation for employees hired after January 1, 2013; and 4) restrictions on the use of retired annuitants. Additionally, the Governor’s plan would require the voters to adopt a constitutional amendment at the November general election.
All eyes now turn to the upcoming actions of the legislative pension reform committee, which is expected to convene at the end of February or beginning of March. At this time, it appears that aspects of pension reform will be adopted by the committee with full votes in the Assembly and Senate to occur shortly thereafter.
RCRC’s Pension Reform Task Force will continue to monitor these developments and the RCRC Board of Directors will review pension reform efforts at their March Board meeting in Sacramento. For further information, please contact Paul A. Smith at psmith@rcrcnet.org.
Federal Health Officials reject California’s Medi-Cal co-payment proposal
This week, federal health officials denied California’s proposal to charge Medi-Cal recipients co-pays for doctor visits and prescription drugs and to allow doctors to refuse care for nonpayment. These proposals would have hurt low-income patients by limiting access to health care services. Under the June 2011-12 budget, passed by the legislature and signed by the Governor, Medi-Cal would require recipients to pay $5 for doctor and dental visits; $3 for “preferred” prescription drugs; $50 for emergency room visits; and a maximum of $200 on hospital visits, for a total savings of $511 million to the state. The co-pays were scheduled to begin October 1. State officials intend to appeal this ruling with the U.S. Health and Human Services Secretary and others in the Obama Administration.
This decision creates yet another setback for California’s budget problems. As previously reported in the Barbed Wire earlier this month, a federal judge blocked the state from implementing a 10% cut to Medi-Cal reimbursement rates for various medical personnel, which would have had a devastating effect on rural county hospitals. Please contact RCRC’s Cyndi Hillery at chillery@rcrcnet.org, or Santinia Pasquini at spasquini@rcrcnet.org with questions or comments.
Congress Finally Agrees on Long Term FAA Bill
Congress approved a long term reauthorization last week to fund the nation’s airports, ending a five year battle in which the FAA was funded by 23 short term extensions. In the end, an agreement was reached over language relating to an airline labor issue which had stalled the bill. Specifically, the $64 billion FAA Air Transportation Modernization and Safety Improvement Act, H.R. 658, sustains current funding levels for the modernization of air traffic control and infrastructure improvements at public airports.
RCRC joined the National Association of Counties to oppose language in the original versions of reauthorization that would have dramatically changed or even eliminated the essential Air Service program (EAS), which provides subsidies to rural airports to support commercial service. The final bill not only preserves the program, but increases its funding level. At the same time, it prevents new communities from entering EAS, and now limits eligibility to those communities participating in the program in FY 2011. For more information, please contact RCRC’s Melissa White at mwhite@rcrcnet.org.
Announcements
Federal Grants Available for Staffing for Adequate Fire and Emergency Response
The California Emergency Management Agency encourages fire departments to apply for the Staffing for Adequate Fire and Emergency Response (SAFER) Act federal grants, which provide funding to fire departments and volunteer firefighter organizations. The goal of the grants is to enhance local fire departments’ abilities to comply with staffing, response and operational standards established by the National Fire Protection Association and the Occupational Safety and Health Administration. For more information about the SAFER grants and other programs administered by Cal EMA, please visit www.CalEMA.ca.gov. For more details about the SAFER Act Grant, please visit www.nfpa.org/SAFERActGrant.
Shasta Lake Draft EIS Released
The U.S. Bureau of Reclamation has released a Draft Feasibility Report and Preliminary Draft Environmental Impact Statement for the Shasta Lake Water Resources Investigation. The documents examine potentially enlarging Shasta Dam and Reservoir to achieve multiple water resource purposes such as water storage, expanding water supply, preservation of eco-systems and infrastructure enhancement. The documents also address potential impacts, costs and benefits ranging from doing nothing to raising the dam up to 18.5 feet and corresponding increases of reservoir storage up to 634,000 acre feet. The Shasta Lakes Water Resources Investigation is one of five surface water storage studies included in the 2000 CALFED Bay-Delta Programmatic Record of Decision and is a continuing feasibility study. The documents may be viewed at http://www.usbr.gov/mp/slwri/documents.html.
A complete Draft Environmental Impact Statement will be prepared for formal public review and comment, coupled with a comprehensive public outreach effort. In the meantime, RCRC staff will continue to monitor and update members. For questions, please contact Katrina Chow, Bureau of Reclamation, 2800 Cottage Way, MP-700, Sacramento, CA 95825, or fax 916-978-5094 or e-mail kchow@usbr.gov; or RCRC’s Kathy Mannion at 916-447-4806.
Members Encouraged to Support Eat Local, Buy California Grown Act Resolution
Assembly Concurrent Resolution 42 (Ma), also known as the “Eat Local, Buy California Grown Act,” is gaining momentum as more communities take notice. Assembly Member Fiona Ma (D-San Francisco) introduced ACR 42 to encourage Californians to dedicate one day per week, particularly Sundays, to eating only California-grown food in support of our state’s local economies and for promoting environmental stewardship. Purchasing and eating locally-grown food could translate to a consumption increase of up to 4.2 billion pounds and $26.3 billion in sales. RCRC members interested in supporting this resolution are asked to do so before Ag Day in Sacramento on March 21. Please contact Kasey O’Connor of Assembly Member Ma’s office at 916-319-2012 with questions or comments.
Please contact Jehan Flagg at jflagg@rcrcnet.org with any questions or comments about this publication.