August, 2012

Glendale may save more than $9.5 million annually after 117 employees retire early, but paying for the incentive credited with voluntarily trimming the city’s workforce will cost about $1.6 million.

The Governor and Legislature finally agreed on long-awaited major pension reform on Tuesday. Because the language was released in a committee bill, the comprehensive proposal allows for no amendments and will be decided by an up-or-down majority vote on August

A newly proposed IRS rule could cause thousands of California charter school employees to become ineligible for CalSTRS. In addition, some special districts that are part of 1937 Act counties could face similar eligibility questions.

The bad news… If the November tax measure fails, community colleges will face a large trigger cut, plus further cash deferrals. Colleges may have to cut enrollment, lay off employees or reduce class offerings.

Senate President Darrell Steinberg promises that public pension reform will happen by the end of August. Democrats want to include a cap on benefits and possibly a hybrid plan for new employees with a 401k-style component. Gov. Jerry Brown also