Government should ask us how to save money
As the nation heads toward a recession, the California Assembly is looking at ways to make cuts, the Sacramento Bee reports.
The plan, effective immediately, is designed to cut about $7.3 million, roughly 10 percent of the Assembly's budget through June. Besides the golden handshake, the plan contains unspecified cuts in Assembly hearings outside Sacramento, staff travel, office renovation, printing, furniture purchases and various other expenses. "The Legislature has been cutting everybody else's budget, so it's time to tighten our own belts," said Steve Maviglio, spokesman for Assembly Speaker Fabian Núñez.California's massive budget woes sparked golden handshake offers Thursday to more than 200 veteran Assembly staff members along with a host of other spending cuts.
I don't know about you, but I cut back on my tavel, office renovation and furniture purchases a long time ago because I can't afford it. I hope our local city governments are looking at this things, too. But whether offering a golden handshake will actually lead to cost savings, that is questioned.
California's retirement system provides vested employees 55 or older with a pension that totals 2 percent of their highest 12-month salary multiplied by years worked. Younger retirees would receive less.
Jon Coupal, president of the Howard Jarvis Taxpayers Association, said the golden handshake could exacerbate fiscal woes in years to come, particularly if the economy sours and investment revenue drops.
"You're opening yourself up to being hit," Coupal said.