Phoenix Lawmakers Weigh In On Proposition 487

Entering Arizona sign

When Phoenix voters go to the polls today, they will decide the fate of one of the most controversial ballot measures in the country: Proposition 487.

The measure would close of the city’s defined-benefit system to new hires and shift them into a 401(k)-style plan.

Public safety workers are excluded, but unions say death and disability benefits could still be reduced.

The Arizona Republic asked city leaders from both sides of the aisle to weigh in on the bill:

“In 2013, I was proud to co-chair the city’s pension reform committee that successfully passed $700 million in savings. That reform passed the right way — considered by a citizen panel and approved with more than 80 percent of the vote. Prop. 487 was written and funded by dark, out-of-state money, with no local consideration or feedback. If it passes, it will undo all the work we did last year, and the city estimates that it will cost taxpayers more than $350 million. Phoenix should vote no on Prop.487.”

Daniel Valenzula, District 5, parts of west and central Phoenix

“Assumption of risk has been largely ignored except for Bob Robb’s recent analysis. The pension of former City Manager David Cavazos illustrates the importance of this issue. Although I voted against his large salary increase, council action raised his pension to approaching $250,000 per year for life, starting at age 53. If the economy goes bad, if an emergency arises, the city still owes approximately $250,000 per year. Another individual would need about $5million set aside (never to be spent because of an economic downturn, a family emergency or anything else) earning 5 percent every year to match that pension.”

Jim Waring, vice mayor (District 2), northeast Phoenix

“Voting yes on Prop. 487 brings fiscal accountability back to the city of Phoenix. Our city is in a financial crisis. Pension costs are cutting into services and causing new tax increases. Phoenix is short more than 500 police officers, and the politicians imposed a new water tax to pay for increasing pension costs. Prop. 487 stops the financial bleeding. Without Prop. 487, you will see more cuts in service and higher taxes. We could add 150 new police officers if we just stopped pension spiking alone. Pension spiking costs you more than $19 million per year. Please vote yes on Prop.487.”

Sal DiCiccio, District 6, Ahwatukee and east Phoenix

“If Prop. 487 passes, Phoenix would be the only government employer in Arizona and one of the few in the nation that does not offer a defined benefit plan. This presents a disadvantage in attracting quality employees and will deter current public employees in considering Phoenix as an employment option. The public sector already faces challenges due to less competitive wages. One of our attracting factors is pension benefits. Our city is additionally disadvantaged since we increased our retirement eligibility rule of 80 to 87, and research shows that lowering our pension benefits will be yet another detriment to the employment packages we offer.”

Michael Nowakowski, District 7, southwest Phoenix and parts of downtown

“Voters considering Prop. 487 should make no mistake: This measure will cost the city millions of dollars we don’t have, and every dollar spent on this shoddily drafted ballot initiative is a dollar taken away from the other priorities of the city: flood control, better streets, hiring new police officers, and other vital city services. Reasonable minds can disagree about Proposition 487 on many levels, but in the short-term, the evidence is clear: Proposition 487 is expensive. Our city is in a very difficult financial situation, and we simply cannot afford Prop. 487.”

Kate Gallego, District 8, southeast Phoenix and parts of downtown

See Pension360’s previous coverage of Proposition 487 here.

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